Australians are installing home batteries at a record rate.
Since July 2025, more than 260,000 households, businesses and organisations have installed home batteries under the federal government’s Cheaper Home Batteries Program.
The program offers a discount of about 30% on the upfront cost of installing eligible small-scale battery systems, which help cut power costs while taking pressure off the main electricity grid.
But from May 1, the government is changing how it calculates this discount. This is to keep the rebate sustainable as battery costs fall, while also discouraging people from installing oversized systems.
For a typical household battery with a storage capacity of about 10–13 kilowatt-hours (kWh), the May 1 rebate change will likely reduce upfront costs by between A$600 and $800.
That’s not a major saving. So it’s not worth rushing to buy a battery, especially if it doesn’t suit your needs.
Boosting batteries
Home batteries allow households to store solar energy for when they need it most – at night, for example – while cutting power costs. Batteries also help reduce our collective reliance on the energy grid, and fossil fuels more broadly.
Australians have installed 260,000 solar batteries to date, capable of storing 7.7 gigawatt-hours (GWh) of energy. That’s enough to power about half a million average homes for a day.
The government now wants up to two million households to have a battery within four years. That’s nearly eight times the current number.
So, what’s changing?
Currently, the federal government offers incentives called small-scale technology certificates, or STCs. These are created when eligible small-scale renewable energy systems are installed, such as rooftop solar panels, solar batteries and heat pump hot water systems. Installers can claim these certificates, and then pass it onto customers as an immediate discount.
From May 1, the government will adjust how this upfront discount is applied, in two main ways.
First, the discount will step down every six months, and at a higher rate as time goes on. This means the rebate will generally be worth less the longer households wait to buy and install a battery.
Second, the discount will be tied to battery size. This means smaller batteries receive the full discount rate, while larger batteries receive a lower rate on their additional storage capacity.
The aim is to keep the overall discount at around 30%, while adjusting for falling battery costs over time. This also allows the government to prevent cost blowouts.
Overall, these changes are a positive step. They will ensure households won’t just buy the biggest battery, but one that matches their energy usage, charging needs and existing infrastructure.
However, the May 1 deadline may see people make rushed purchases, buying batteries based on confusing quotes and optimistic savings claims.
Authorities are aware of these risks. The Australian Competition and Consumer Commission has warned consumers to avoid racing to buy anything. It is also scrutinising the sales practices of battery and solar suppliers, as well as electricity retailers.
The Clean Energy Regulator is similarly monitoring retailers and installers around the May 1 deadline.
So, how can I choose the right battery?
If you’re still keen to buy a home battery, don’t rush in. Instead, take your time and consider these three points.
1. Storage isn’t the same as power
Retailers often market home batteries in terms of kilowatt-hours (kWh), a measure of how much energy a battery can store.
By contrast, a battery’s kilowatts (kW) tells you how much power it can deliver at any given time, as well as how quickly it can charge or discharge.
Battery retailers often emphasise storage because it sounds more appealing. But it’s often not as important as how much power a battery can deliver.
For instance, you may splurge on a battery with a large capacity but low power output. It may store a lot of energy, but fail to run several large appliances at once. Also, some households may not generate enough surplus solar to regularly charge a large battery, and may have a system that can’t charge from the grid.
Governments don’t usually regulate whether a battery is the right size for a particular home. However, the Australian Competition and Consumer Commission can act against misleading claims made by battery retailers and suppliers.
2. Safety is key
You should also check how your battery is installed. More than 60% of batteries inspected by the Clean Energy Regulator were found to be substandard and 1.2% were actually unsafe.
Substandard doesn’t mean the battery is faulty. It means the installer didn’t follow all the installation rules. These usually aren’t too serious – the most common issue is missing or incorrect warning labels – but at their worst can pose a safety risk.
Households in low-income or regional areas may have less protection against poor sales advice or substandard installation, particularly if they have fewer retailers and installers to choose from.
To prevent this, government should fund trusted local quote-check services to ensure households can properly compare offers. It must also strengthen compliance by making battery installer accreditation more stringent.
3. Upfront costs may still be high
Even with government subsidies, some households may still struggle to afford a home battery. However, the government could help cover the remaining upfront cost by pairing the current discount with low-cost or zero-interest finance.
Don’t rush
Yes, the May 1 deadline is fast approaching. But the subsidies aren’t ending – they’re changing. So it’s worth taking the time to find a system that actually meets your needs.
Trevor Brown, Emeritus Professor of Chemistry, School of Science and Technology, University of New England
This article is republished from The Conversation under a Creative Commons license. Read the original article.
“Don’t rush. Yes, the May 1 deadline is approaching”
maybe change it to, don’t rush, you are too late !
Whether a battery is worthwhile changes with how individual households use their power. The one or two cent feed in rates these days mean it is highly unlikely the daily service charge will be covered like it often did on my old 1Kw system on the 60 cent feedin rate.
I have just installed a 20Kw battery and upgraded to a 6.6Kw panel system and over the past month have been testing it out in real world (not fantasy desk imagination in glossy brochures). To date my system has drawn under 2Kw in absolute total from the grid most of which are the few watts checking the grid is alive which cannot be avoided. My battery has never got below 65% although most days above 75% at its lowest around 7.30am.
The main benefit I will have now with the battery system is I dont have to plan my heavier usage as strictly to be within the off peak hour tariffs. To test the battery’s real capacity to provide power I used the kettle, washing machine, clothes dryer and the hot water heat pump fired up with no draw from the grid. Not something I would normally do but in the interest of science I did so.
Over the course of the next year it wil be interesting to see the net difference the battery makes given we have yet to go through the winter period.
Reality is should a household be one of those with uncontrolled fetish for power hungry devices then power bills will continue to rise with or without a battery. Savings dont just happen, they are worked for by using the grey matter between the ears. Thats what I did for 15 years with a mere 1Kw system, no battery and power bills never over $50pm until the hot water heat pump removed the gas usage.