The Australian Government will boost the Cheaper Home Batteries Program by $4.9 billion next year, with an expected 4 million Australian households now set to benefit. Major changes will also be introduced to ensure the program can be expanded and is sustainable long term.

Demand for solar batteries has surged since the National Battery Rebate was introduced earlier this year. Solar battery uptake has exceeded expectations, triggering a review of the program to ensure it could be made available to more households and for longer. The result is a stronger, smarter rebate — backed by billions in additional investment — and importantly, no change for existing Plico customers already waiting for their battery installation.

How is the National Battery Rebate changing?

The original $2.3 billion budget has been expanded to $7.2 billion over the next four years. The government predicts this will support up to 4 million households to access the benefits of solar batteries by 2030.

The expansion is expected to deliver 40 gigawatt hours of additional storage capacity!

Also on the table are significant changes to the way the rebates are allocated. The rebate will decline at a higher rate; every six months, instead of the annual reduction initially planned.

The value of the rebate will reduce for larger solar battery systems under a new tiered system.
All these changes will only apply to home batteries installed from the start of May 2026, before further drops each January and July through to the end of 2030.

Why is the rebate program changing? 

The Cheaper Home Batteries Program aims to get more solar batteries in Australian homes. And it has done just that. It provided a generous incentive that reduced the upfront cost and pay back period for solar batteries. The increased demand not just for batteries but for large batteries, contributed to the program being potentially overallocated well ahead of the 2030 deadline.  At the current rate of adoption, it was predicted to be fully allocated some time in 2026. 

Therefore, the government has announced major changes to the program to come into force from May 2026, in an effort to:

• Better match battery sizes with household needs
• Ensure the program runs until 2030 as planned, helping more households benefit from clean energy
• Align with market trends and falling battery costs
  
  
  

Major change: Moving towards a tiered rebate structure

From 1 May 2026, the level of support provided under the program will be staggered, based on the size of the battery. Under this approach, small-to-medium sized batteries will continue to receive the same rebate amount, which remains at around 30% discount on the upfront cost. Larger batteries will receive the full rebate applied to the first 14 kWh and then a lower amount above 14 kWh and again at 28 kWh. 

Plico CEO, Robbie Campbell, welcomes the changes and says that solution isn't to reduce ambition, but to fine-tune the design. 

"Adjusting how rebates are phased and tiered by battery size means the program is better calibrated to deliver the right battery, for the right home, at the right cost, while ensuring long-term program viability. That’s a sensible evolution, not a retreat. By lowering the upfront cost of batteries, the program accelerates the rollout of storage that reduces peak demand, eases pressure on the grid and defers expensive network upgrades."

Here's how the rebates will be applied from May 2026:

• First 0 kWh to 14 kWh will receive 100% of the rebate
• Every kWh greater than 14 and up to 28 will receive 60% of the rebate
• Every kWh greater than 28 and up to 50 will receive 15% of the rebate

These changes mean that more Aussie households can access an affordable solar battery and for longer, which is great news for clean energy!

It also means that if you want to get the maximum rebate possible, you will need to act fast to lock it in. With further installation backlogs expected in the lead up to May next year, customers are encouraged to sign up now to ensure they are installed before the changes come into effect.

Australians have a once-in-a-lifetime opportunity to get the maximum rebate on a solar battery. Plus, with state rebates also available, there's never been a better time to get a solar battery. 

Major change: Rebate reducing every six months

Another major shift in the program is the rebate reducing more frequently. The gradual rebate reduction was originally every planned for every 12 months at the start of each calendar year and the frequency will now increase to July and January each year until 2030. The first reduction will come into force in May 2026.

This is a sensible step-down approach that will ensure the longevity of the program. It also places greater urgency on the industry and customers to have batteries installed before each reduction in the rebate value. 

Greater reach, greater impact

Overall, the changes to the Cheaper Home Batteries Program represent a positive step forward, benefiting more households and supporting a cleaner, more resilient grid. Even with the planned reductions in the rebate value over time, the program is still a fantastic opportunity to reduce the upfront costs of a solar battery. Households benefit from a lower battery price and ongoing savings of around $1,100 a year. The update of solar batteries is also helping support the growth of Virtual Power Plants (VPPs) across Australia, identified as crucial to the clean energy transition in Australia. 

Plico's VPP is actively boosting the WA grid with clean energy and helping prevent blackouts for all grid users. Plico members earn VPP Rewards for their energy; just another way they are making the most out of their battery investment.

Plico CEO, Robbie Campbell says VPPs are a powerful and cost-effective solution for the grid.

"We’re aggregating thousands of household batteries into what functions like a virtual, utility-scale battery, coordinated through a nationwide Virtual Power Plant. No single battery delivers this alone, but aggregated at scale, and tailored to the market settings of both the WEM and the NEM, the system value becomes material. When assessed on $/kWh installed, $/kW of flexible capacity, and speed to deployment, the return on investment to the system is stronger than many traditional alternatives, with the added benefit of lower household bills."

If you'd like to check your rebate eligibility and get an obligation-free quote for a solar + battery or solar battery system, reach out to the switched-on Plico team on 1300 175 426.

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