The government's home battery rebate program has been a massive success. Over 160,000 Australian households have already installed batteries with support from the scheme, with most of those installations happening in suburbs and regional areas.
That's great news for the energy transition. But it's created a timing issue.
People are buying bigger batteries than anticipated, which means the average rebate per household is higher than forecast. The 50-75 kWh and 30-50 kWh battery segments grew by 71% and 58% respectively in November alone. At the current rate, the original $2.3 billion budget would run out by mid-2026, four years before the program was meant to finish.
To fix this, the government has expanded the program to $7.2 billion and adjusted how rebates are calculated. The goal is to help around 2 million households install batteries by 2030, adding approximately 40 gigawatt-hours of storage capacity. But to make that happen, the rebate structure needs to change.
Here's what's changing and what it means if you're planning to get a battery.
What you'll receive at different points in 2026
The rebate depends on your battery's useable capacity. Here's what some popular systems will receive through 2026.
(These are estimates before admin fees, which are typically around 10% of the rebate):
Common residential batteries (13-16 kWh)
- Tesla Powerwall 3 (13.5 kWh): $5,022 now → $4,536 (Jan-April 2026) → $3,672 (May-Dec 2026)
- AlphaESS Smile (13.34 kWh): $4,962 now → $4,482 (Jan-April 2026) → $3,628 (May-Dec 2026)
- Sungrow SBR (16 kWh): $5,920 now → $5,360 (Jan-April 2026) → $4,120 (May-Dec 2026)
Larger systems (above 30 kWh) Bigger installations see steeper reductions:
- 30 kWh system: $11,160 now → $10,080 (Jan-April 2026) → $6,160 (May-Dec 2026)
- 48-50 kWh system: $17,800+ now → $16,100+ (Jan-April 2026) → $6,900 (May-Dec 2026)
How the new tiered structure works
From May 2026, the rebate shifts to a tiered discount model based on battery size:
Batteries up to 14 kWh will continue to receive the full discount (roughly 30% off the upfront cost).
Batteries between 14-28 kWh will receive 60% of the full discount rate.
Batteries between 28-50 kWh will receive 15% of the full discount rate.
This tiered approach is designed to spread the benefits across more households while still supporting larger systems. Batteries up to 100 kWh remain eligible, with the adjusted discount applying to the first 50 kWh.
What's changing
Instead of adjusting once a year, rebate levels will now reduce every six months. This lets the program respond to how the market's tracking and ensures funding lasts through to 2030.
The changes kick in from May 2026. Any battery installed before then gets the current rebate levels.
What the Minister said
"We want more Aussie households to have access to batteries that are good for bills and good for the grid, because it means more cheap, fast, safe solar energy is available in our homes night or day, when and where it's needed," Climate and Energy Minister Chris Bowen said.
The Australian Energy Market Commission reckons increased battery uptake could cut bills by around 3% annually across the energy system by smoothing out those evening price spikes. That benefits everyone, not just battery owners.
The Smart Energy Council, which represents the solar and battery industry, has welcomed the funding boost and says the timing gives businesses an appropriate period to adjust.
Why batteries still stack up with Amber
Even with lower rebates from May, batteries paired with wholesale pricing deliver strong returns. Here's why:
You keep everything you earn. When your battery exports during high-price periods, you get the full wholesale rate (up to $19/kWh during peaks). That's dollars, not the cents traditional retailers offer.
SmartShift does the work. Our automation charges your battery when prices are low (often negative during the day) and discharges when they spike in the evening. You get the most value from every kilowatt-hour without lifting a finger.
If you're planning a battery, getting it installed before May 2026 locks in the higher rebate. But even after the reduction, federal support plus wholesale market access makes batteries financially attractive for a lot of households.
Want to check if your system will work with SmartShift? Our compatibility checker shows which batteries work with our automation. You can also join the waitlist to find out when new models become compatible.
