How the Cheaper Home Battery Rebate is changing

Record uptake of battery installations has prompted the Federal Government to formally revise the Cheaper Home Batteries rebate, with confirmed changes to both funding and how the rebate will be applied.

While the program is funded through to 2030, the rebate is no longer static. The Federal Government has confirmed that rebate values will change from 1 May 2026, and current rebate settings for larger battery systems are therefore time limited.

For commercial customers, the rebate exists. The commercial planning issue is that current rebate values for 50kWh and larger batteries apply only until 30 April 2026.

Why the rebate is being revised now

Since launching, the Cheaper Home Batteries Program has been taken up far faster than originally anticipated. Demand has been particularly strong for larger battery systems, including systems around 20-50kWh, which draw down a disproportionate share of available funding.

Early uptake data and industry analysis indicated that, under the original structure, the initial $2.3 billion allocation was on track to be fully committed well before schedule. Without intervention, this would have forced the scheme to close early.

To prevent that outcome, the Federal Government has restructured the program.

What the government has confirmed

The Federal Government has confirmed that:

• Total funding for the Cheaper Home Batteries Program has increased from $2.3 billion to approximately $7.2 billion, extending funding through to 2030
• The program will continue operating rather than closing early due to oversubscription
• Rebate calculations will change from 1 May 2026, with revised settings applied to new installations from that date

Crucially for businesses, the expanded budget does not preserve current rebate values for all battery sizes.

The government has confirmed that future rebate settings will be weighted toward smaller battery systems, with reduced effective support for larger batteries, including commercial-scale systems.

How the rebate will change in practice

The confirmed changes do not involve an abrupt end to the scheme. Instead, the program is transitioning to managed settings.

In practical terms, the following outcomes are now fixed:

• Current rebate values apply only until 30 April 2026
• From 1 May 2026, revised rebate calculations will apply
• Rebate value per kWh will reduce under the new calculation method
• Larger batteries will receive a lower effective rebate than under current settings
  
  The rebate will continue to exist after this date, but at a lower value for commercial-scale batteries.

What this means if you are considering a 50kWh battery

For businesses considering battery systems of 50kWh or more, timing is now a defined input into project economics.

Under current settings, the rebate can materially reduce upfront capital cost and improve payback periods. That level of support is available only for projects installed and commissioned on or before 30 April 2026.

From 1 May 2026, the same battery system will attract a lower rebate under the revised calculation method.

This creates a clear planning constraint. Delaying a decision does not remove the rebate entirely, but it reduces the value available to commercial-scale projects.

Businesses that are already assessing batteries, seeking internal approval or preparing budgets should treat 30 April 2026 as a hard commercial deadline if current rebate economics are required to support the investment case.

Bottom line

The Cheaper Home Batteries Program has not been cancelled. It has been expanded.

However, the program has entered a managed phase. While total funding now sits at approximately $7.2 billion, current rebate values for commercial-scale batteries are locked in only until 30 April 2026.

For businesses where the rebate materially affects project viability, acting before this date preserves access to the most favourable settings.

The final layer of certainty comes from execution. Commercial battery projects carry long-term performance and operational risk. Choose a provider with demonstrated experience at your system size, realistic performance guarantees and included O&M support. Smart has operated for 14 years and has delivered thousands of commercial solar and storage projects across Australia. Longevity remains one of the strongest indicators of technical competence and financial stability.

Before committing to a commercial battery investment, confirm that your provider can clearly explain how performance, maintenance and risk are managed over the life of the asset.

TLDR? These FAQs Will Help

Is the rebate available for commercial batteries?

Yes. The rebate applies to commercial battery installations, including systems of 50kWh and above.

How long do current rebate values apply?

Current rebate values apply until 30 April 2026.

What happens after that date?

From 1 May 2026, revised rebate calculations will apply, reducing the effective rebate available to larger battery systems.

Should commercial projects proceed before then?

If current rebate values are required to support the business case, projects should be installed and commissioned before 30 April 2026.