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Important Changes to the Cheaper Home Battery Program - What Homeowners Need to Know

  • Electrical Sensations
  • 10 hours ago
  • 4 min read

If you've been thinking about adding a battery to your solar system, or considering getting solar and battery together, there's some important news you need to know about.

On December 13th, the Australian Government announced major changes to the Cheaper Home Batteries Program - and these changes will affect how much you can save when you install a battery from May 1st, 2026.

As a local solar installer who's helped hundreds of Toowoomba families make the switch to solar energy, I want to give you the straight facts about what's changing and what it means for your wallet.


The Big Picture: More Money, More Batteries

First, the good news. The government is massively expanding this program - from $2.3 billion to $7.2 billion over the next four years. That's a huge commitment that shows they're serious about helping Australians store their solar energy.


What's Changing From May 1st, 2026

Here's where things get a bit more complex, and I want to be upfront with you about it.

The government is adjusting how the discount works to make sure it's fair across different battery sizes and reflects that battery prices are coming down over time. The aim is to keep the discount at around 30% for various battery sizes.


Two key changes are coming:

  1. The discount (STC factor) will be reduced more often - Every 6 months instead of yearly

  2. The discount (STC factor) will reduce at a higher rate - as seen in the table below

  3. The discount amount will depend on your battery size - to "align with declining battery costs"

Year

Period

Existing STC Factor

Proposed STC factor (from May 2026)

Difference and % change

2026

January - April

8.4

8.4

0 (0%)

2026

May - December

8.4

6.8

1.6 (19%)

2027

January - June

7.4

5.7

1.7 (23%)

2027

July - December

7.4

5.2

2.2 (30%)

2028

January - June

6.5

4.6

1.9 (30%)

2028

July - December

6.5

4.1

2.4 (37%)

2029

January - June

5.6

3.6

2 (36%)

2029

July - December

5.6

3.1

2.5 (45%)

2030

January - June

4.7

2.6

2.1 (45%)

2030

July - December

4.7

2.1

2.6 (55%)

What are STC's?

  • STCs (Small-scale Technology Certificates) are part of Australia’s renewable energy incentive scheme set to end in 2030.

  • When you install solar panels or eligible batteries, the system is assigned a certain number of STCs based on its size, location, and expected energy output.

  • Installers then sell those STCs to energy companies, which creates the rebate/discount you see on your upfront cost.

  • The rebate is based on the number of STCs your system qualifies for, and the market value of those certificates at the time. Larger systems generate more STCs, which usually means a bigger discount

How the New System Works

Under the new rules starting May 1st, 2026, batteries will be supported in tiers:

  • Smaller batteries (0-14 kWh): Full discount applies

  • Medium batteries (14-28 kWh): The portion above 14 kWh gets 60% of the discount

  • Larger batteries (28-50 kWh): The portion above 28 kWh gets 15% of the discount

What this means in plain English: If you're getting a typical home battery around 10-13 kWh, you'll still get the full discount. If you're going bigger, the discount tapers off for the extra capacity.


Why Is This Happening?

The government wants to make sure the program is sustainable and fair. Battery prices have been dropping, which is great news. These changes are designed to align the discount with those falling prices while making sure the program can help as many Australian families as possible over the long term.


What Should Toowoomba Homeowners Do?

Here's my honest advice as someone who lives and works in this community:

  • If you're already planning to get a battery in the next few months, it's worth moving forward sooner rather than later if possible. The current discount structure remains in place until May 1st, 2026.

  • If you're still weighing up your options, don't panic. The discount isn't going away - it's just being adjusted. You'll still save around 30% on most battery systems, which is a substantial saving.

  • If you're not sure what size battery you need, that's exactly the conversation we should have. The right battery size depends on your household's energy use, not just what gets the biggest discount.


Our Promise to You

At the end of the day, our job is to help you make the best decision for your home and your budget - not just to sell you the biggest system. That means:

  • Giving you accurate information about costs and savings

  • Explaining all your options, including how these government changes affect you

  • Designing a system that actually matches how you use energy - no cookie-cutter systems!

  • Being here for you long after the installation is complete


These program changes might seem complicated, but they don't change the fundamental truth: battery storage is becoming more affordable and more valuable for Queensland homeowners. With our electricity prices and abundant sunshine here in Toowoomba, storing your solar power makes more sense than ever.


Want to Know More?

If you're thinking about battery storage and want to understand what these changes mean for your specific situation, I'm happy to have a no-pressure chat. We can look at your energy bills, discuss your goals, and work out what makes sense for your household.


The most important thing is that you have all the facts to make the right decision for your family.



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