Australia, a sun-drenched land blessed with a pleasant climate, is not only endowed with unique natural beauty but is also globally recognized as one of the world’s most livable countries. However, despite this idyllic setting, many households face the persistent pressure of high electricity bills. Currently, the average electricity price for a typical household is approximately $0.395 per kilowatt-hour, higher than the global average. Compounding this issue, the draft determination released by the Australian Energy Regulator (AER) indicates potential further price hikes. For Australian residents, electricity expenses are essential – powering air conditioning during the summer, charging the family electric vehicle, or simply maintaining comfort and convenience during occasional blackouts. In an era of steadily rising energy costs, the question of how to achieve energy savings, reduce emissions, and lower power bills has become a focal point for a growing number of residents.
Installing a solar power system is the ideal solution to these challenges. Australia boasts one of the highest levels of solar radiation per square meter globally, ranks among the top countries for per capita uptake of residential rooftop solar, and utilizes world-leading solar photovoltaic technology. This makes it the perfect environment for home solar power generation. Nevertheless, the high upfront cost of batteries has historically made energy storage an unattainable goal for many families and businesses. The encouraging news is that the Australian government has recently introduced the “Cheaper Home Batteries Program,” designed to encourage residents to install energy storage batteries and inverters that meet Clean Energy Council (CEC) standards. Eligible households can apply for a government subsidy, significantly reducing the initial investment and making it easier to enjoy the cleanliness and convenience of a solar power system–and even potentially earn extra income from feeding surplus energy back to the grid.
If you are interested in the Cheaper Home Batteries Program and want to learn more about the eligibility criteria and application process, we invite you to continue reading. The following sections will provide a detailed breakdown for you.
What is the Cheaper Home Batteries Program?
Commencing in 1st July 2025, Australia’s $2.3 billion Cheaper Home Batteries Program is a government-funded initiative providing households, businesses, and community organizations with a discount of approximately 30% on the cost of installing small-scale battery systems ranging from 5 kWh to 100 kWh. Administered by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) in collaboration with the Clean Energy Regulator (CER), the program is an expansion of the Small-scale Renewable Energy Scheme (SRES).
The program aims to facilitate the installation of over 1 million new batteries across Australia by 2030, helping participating households, businesses and community organizations reduce electricity bills by making the most of cheap and clean solar power by storing it for when it is needed; lowering costs for everyone by reducing peak demand and creating a more stable electricity grid; communicating responsibilities for retailers, installers and consumers to ensure batteries are bought and installed legally, safely and for permanent use.
Eligibility Criteria
This account:
- Applies to batteries connected to new or existing solar PV systems.
- Requires the battery capacity to be between 5 kWh and 100 kWh.
- Mandates that both the battery system and the inverter must be listed on the Clean Energy Council (CEC) approved product directory.
- Requires professional installation by a certified installer, and the subsidized battery must not be relocated or resold after installation.
- Will be reviewed at least annually and will be gradually phased down by 2030, in line with expected decreases in battery prices.
If you want to receive the upfront discount from retailer/installer, you should:
- Carefully research what battery system would best suit your energy needs, including seeking multiple quotes from retailers/installers.
- Make sure information about the value of the program discount, the system warranty, and the anticipated payback period is clearly communicated.
- Select a reputable retailer and installer. Check with family, friends or neighbors. Ensure the battery is approved by the Clean Energy Council and the installer is properly accredited by Solar Accreditation Australia.
- Ensure the accredited installer is on site for the set-up, installation and commissioning of the battery.
The program is available to homeowners, landlords, small businesses, and community facilities nationwide, with no geographic or income restrictions. For small businesses and community facilities, batteries up to 50kWh are eligible, with the total system capacity not exceeding 100kWh.
Benefits of the Cheaper Home Batteries Program
According to analysis by the Department of Climate Change, Energy, the Environment and Water (DCCEEW), households with existing rooftop solar can save up to $1,100 annually on electricity bills, while those installing new solar and battery systems can save up to $2,300 per year – approximately 90% of an average household’s electricity costs.
The program provides a subsidy of up to $372 per usable kilowatt-hour (kWh) of battery storage. After accounting for administrative costs, the actual discount is expected to be approximately $330 per kWh. This subsidy is accessible without a complex application process; the discount is typically provided upfront by certified installers/retailers. Unless you choose to register the Small-scale Technology Certificates (STCs) yourself through the Clean Energy Regulator (CER), the discount comes as an upfront reduction on the battery price.
Homeowners in states like Tasmania can stack multiple incentives, combining the federal discount with state-level loans, such as interest-free loans of up to $10,000. This combination can significantly reduce upfront costs for homeowners and shorten the payback period.
For eligible residents in Victoria, you can receive a rebate when installing a solar panel system through the Solar Homes Program, and this rebate can be combined with the discount in the Cheaper Home Batteries Program to enjoy even lower costs.
For low-income households in New South Wales, support is available through the Energy Social Program. In South Australia, the Home Battery Scheme can provide subsidies of up to $6,000 for home battery installations for households in the region installing solar systems. Residents in other states can also access subsidies by exploring relevant government initiatives.
Please note that as the cost of batteries continues to decline, the subsidy amount will decrease year by year as planned. It is expected that by 2027, the subsidy rate will drop to 25%, and further to 20% in 2030. This means the earlier you act, the greater the financial support you will receive. You can choose a suitable retailer/installer and proceed with the installation as soon as possible.
QH Tech: Your Certified Partner for CEC-Compliant Battery Systems
QH Tech’s battery and inverter systems fully comply with the CEC standards required by the Cheaper Home Batteries Program, making installations eligible for the program. Our products undergo rigorous testing and meet all necessary certification standards, ensuring you can enjoy reliable, high-performance energy storage for your home while benefiting from the government subsidy.
We install CEC-approved brands, including Alpha ESS, FOX ESS, Solis, and Solax, among others. Our services cover the Sydney Metro, Melbourne, and Brisbane areas. We can offer suitable and affordable solutions for you.
Rebate changes from 1 May 2026. Act now to secure current rebate settings.
For more information about the “Cheaper Home Batteries Program” and how QH Tech’s CEC-compliant solutions can help you save, please contact us at info@lifepo4-energy.com.
Our Installation Work in Sydney