Australia has the highest rate of rooftop solar in the world, with more than one in three households and over 4.3 million rooftops carrying panels. The gap in that record was storage. Households generated cheap power in the middle of the day, exported it for a shrinking feed-in tariff, then bought expensive grid electricity back during the evening peak. Batteries closed that gap, but at $12,000 to $18,000 installed they were out of reach for most people. Labor took the Cheaper Home Batteries Program to the 2025 election as its central cost-of-living energy commitment, and it began operating on 1 July 2025.

How the program works

The discount is delivered through the existing Small-scale Renewable Energy Scheme (SRES) rather than a new grants process. Batteries generate small-scale technology certificates (STCs) based on usable capacity, the certificates are traded to the installer or retailer, and the discount comes off the quoted price at the point of sale. There is no application, no rebate claim and no waiting for reimbursement.

• Around 30 per cent off the upfront cost of eligible systems between 5 kWh and 100 kWh

• Solar required, either existing or installed at the same time

• Virtual power plant capable batteries only, so systems can later be aggregated to support the grid

• Administered by the Clean Energy Regulator, using installer accreditation through Solar Accreditation Australia

• One discount per eligible premises, with the certificate rate scheduled to decline to 2030 as battery prices fall

Uptake

Anthony Albanese and Chris Bowen marked the 500,000th installation at a battery installer in Castle Hill on 14 August 2026, citing 507,651 systems installed since 1 July 2025. Bowen put cumulative household storage at 14 gigawatt hours and the current run rate at around 2,000 batteries every working day. The Clean Energy Regulator was processing roughly 8,000 applications a week through the first year.

Uptake ran well ahead of the original forecast of one million batteries by 2030. By early May 2026 the count had reached 380,712 systems and 10.7 gigawatt hours, which Bowen noted had outpaced take-up of the government's electric vehicle tax discount over the same period. Distribution has been broader than the early scepticism suggested: more than three quarters of installations have been in outer suburban and regional communities. The seat of Mitchell in north-western Sydney, which ranked 108th of 150 electorates for battery uptake in 2024, now ranks third nationally, with 6,958 batteries covering more than 10 per cent of households in the electorate. The number of accredited battery installers has doubled to 8,846.

Bill outcomes

The ACCC's Electricity Market Inquiry report, released in July 2026, provides the main independent measurement of the effect on bills. It found households with solar and battery systems paid between about $329 and $909 less a year, or 20 to 52 per cent below comparable grid-only customers. For the 24 per cent of solar and battery customers participating in a virtual power plant, bills were typically $762 to $1,093 lower, a reduction of 57 to 63 per cent. The government's own estimate is that a household installing solar and a battery together for the first time can save up to around $2,300 a year.

Trade-offs and redesign

On 13 December 2025 the government expanded the program to an estimated $7.2 billion over four years and redesigned the discount. Two changes took effect on 1 May 2026: the certificate rate now declines every six months rather than annually, and the rate tapers for capacity above 14 kWh so that larger systems attract a proportionally smaller subsidy. The stated aim is to hold the discount near 30 per cent for typical household sizes while keeping the program funded to 2030 and delivering around 40 gigawatt hours of storage across more than 2 million installations. The redesign trimmed roughly $600 to $800 off the upfront saving on a typical 10 to 13 kWh system.

The most substantive criticism is around distribution. A UNSW working paper released found a disproportionate increase in battery and solar installation in wealthier postcodes, and that households able to move quickly before the May 2026 changes locked in both a higher certificate rate and a larger system. The subsidy does not vary by income, postcode or tenure, and because solar is a precondition, renters and apartment residents are largely excluded. The Australian Energy Market Commission has proposed fixing network price components from 2030 to address this, which is a distinct reform from the battery discount itself. The government's position is that the network effect runs the other way at scale, because reducing evening peak demand lowers the system costs that all consumers ultimately pay, and that the May 2026 tapering directs the subsidy toward right-sized systems rather than the largest ones.

The Coalition opposed the program at the 2025 election and Opposition energy spokesperson Dan Tehan has since questioned both its value for money and battery safety. On safety, Clean Energy Regulator inspections found 99 per cent of inspected systems safe to continue operating. The Smart Energy Council has called on the Coalition to rule out withdrawing the support. The opposition has not committed to abolishing the scheme, but has not guaranteed it either, which leaves policy certainty beyond the current term unresolved.

Key Figures

• $7.2 billion over four years, expanded from the original $2.3 billion commitment in December 2025

• 507,651 batteries installed as at 14 August 2026, since the 1 July 2025 start

• 14 gigawatt hours of household and small business storage added

• Around 30 per cent discount on systems between 5 kWh and 100 kWh

• $329 to $909 a year in lower bills for solar and battery households, rising to $762 to $1,093 for virtual power plant participants (ACCC)

• More than 2 million batteries and 40 gigawatt hours targeted by 2030

Sources

[1] Joint media release: Half a million cheaper home batteries bringing down bills for Australian homes and businesses, Prime Minister and Minister for Climate Change and Energy, 14 August 2026

[2] Cheaper Home Batteries Program, Department of Climate Change, Energy, the Environment and Water

[3] Growing home battery uptake delivering lower electricity bills, but consumer protections needed, ACCC Electricity Market Inquiry, July 2026

[4] The home battery rebate is changing. Is it still worth it and what's the right size?, ABC News, 1 May 2026

[5] Like solar, most of the first home battery subsidies went to the wealthy. We need a fairer approach, The Conversation, 11 May 2026