With electricity prices and household energy costs continuing to concern many Australians, more Melbourne homeowners are looking for ways to make better use of solar power. Installing a home battery can help households store excess solar energy during the day and use it later when electricity demand is higher.
The Australian Government’s Cheaper Home Batteries Program aims to make battery storage more affordable by providing a discount on eligible battery installations. If you already have rooftop solar or are considering installing a new solar system, this program may help reduce the upfront cost of adding battery storage.
In this guide, Aussie Energreen explains how the program works, who may qualify, what the discount covers and what Melbourne homeowners should consider before choosing a home battery.
What Is the Cheaper Home Batteries Program?
The Cheaper Home Batteries Program is a Federal Government initiative introduced on 1 July 2025. It supports eligible households, businesses and community organisations by reducing the upfront cost of installing small-scale battery storage systems.
The program aims to encourage more Australians to store renewable energy generated by rooftop solar rather than relying entirely on electricity from the grid.
Eligible installations can receive a discount of around 30% on the upfront cost, although the actual amount depends on the battery’s usable capacity, applicable certificate rates and installation date.
The program is available across Australia, including Melbourne and regional Victoria. It is designed to support eligible batteries connected to new or existing solar PV systems.
How Does the Battery Discount Work?
The discount is delivered through the Small-scale Renewable Energy Scheme (SRES), using Small-scale Technology Certificates (STCs).
Eligible battery systems can generate STCs based on their usable storage capacity. These certificates have a financial value, which can be passed on to customers as a reduction in the installation price.
In most cases, the installer or retailer handles the certificate process and applies the discount to the customer’s quote. Depending on the arrangement, the discount may be provided upfront or after installation.
Homeowners generally do not need to submit a separate application to the government when receiving the discount through an eligible installer.
Important changes from 1 May 2026
The program’s discount calculation changed on 1 May 2026. The updated rules apply different certificate rates depending on the usable capacity of the battery:
- Up to 14 kWh: The full applicable STC factor applies.
- Above 14 kWh and up to 28 kWh: A 60% STC factor applies to the additional capacity in this range.
- Above 28 kWh and up to 50 kWh: A 15% STC factor applies to the additional capacity in this range.
The STC factor also reduces over time, with adjustments every six months. This means the discount available can vary depending on when the battery is installed and certified.
For the May–December 2026 period, the STC factor is 6.8. Homeowners should obtain an up-to-date quote rather than relying on older rebate estimates.
Who Is Eligible for the Cheaper Home Batteries Program?
The program is available to eligible Australian households, businesses and community organisations. However, the battery system and installation must meet the relevant government requirements.
Some of the main eligibility conditions include:
- The battery must have a nominal capacity between 5 kWh and 100 kWh.
- The battery must be connected to an eligible new or existing solar PV system.
- The battery and inverter must appear on the relevant Clean Energy Council approved product lists at the time of installation.
- The installation must be completed by an appropriately accredited Solar Accreditation Australia installer.
- The system must comply with applicable electrical safety requirements and Australian regulations.
- The battery must be installed for permanent use at the property.
For eligible systems, STCs are calculated on the first 50 kWh of usable battery capacity, even where the battery’s nominal capacity is larger.
A battery that only stores electricity purchased from the grid, without being connected to solar PV, is not eligible under the program. Portable batteries and electric vehicles are also excluded.
Eligibility can depend on the complete system configuration, so it is important to confirm the details before signing an installation agreement.
Can Melbourne Homeowners Add a Battery to an Existing Solar System?
Yes. Homeowners do not necessarily need to replace their existing solar panels to install a battery.
If your property already has a rooftop solar system, you may be able to add a compatible battery and store excess electricity generated during the day.
Before proceeding, an installer should assess:
- The capacity and condition of your existing solar panels.
- Your current solar inverter and its compatibility with the proposed battery.
- Your household’s daily electricity consumption.
- Your existing electricity tariff and feed-in tariff.
- Your property’s electrical switchboard and installation requirements.
- Whether the proposed battery can meet your backup power requirements.
If your existing equipment is suitable, adding battery storage may be a practical way to improve the usefulness of your solar investment.
Why Consider Installing a Home Battery?
A home battery gives you more control over when you use the electricity generated by your solar panels. Instead of exporting all your excess solar energy to the grid, you can store some of it for later.
Here are some potential benefits.
1. Use More of Your Own Solar Energy
Solar panels typically generate the most electricity during daylight hours, when many households are away from home.
A battery can store excess generation so you can use it during the evening, overnight or other periods when your solar panels are producing less electricity.
2. Reduce Reliance on Grid Electricity
By using stored solar energy, your household may need to purchase less electricity from the grid.
The amount you save will depend on your energy usage, battery size, solar generation, electricity tariff and system performance.
3. Support Backup Power During Outages
Some battery systems can provide backup electricity during a grid outage.
However, backup functionality depends on the battery, inverter, backup configuration and installation. Not every battery automatically powers the entire home during an outage.
If backup power is important to you, discuss which essential appliances you want to operate and how long you may need them to run.
4. Make Better Use of Your Solar Investment
A battery can help households use more of the renewable electricity they generate rather than exporting excess energy at a potentially lower feed-in tariff.
This can be particularly useful for households that consume more electricity in the evening.
How Do You Choose the Right Battery Size?
Choosing the right battery is just as important as understanding the available discount.
A larger battery is not automatically the best option. The ideal capacity depends on your household’s energy consumption, solar generation and electricity usage patterns.
Consider the following before choosing a system:
- Daily electricity consumption: Review how much electricity your household uses throughout the day and evening.
- Solar generation: Understand how much excess electricity your solar panels produce after daytime usage.
- Evening demand: Consider how much electricity you typically need after sunset.
- Backup requirements: Decide whether you want backup for essential appliances or a larger portion of your home.
- Future energy needs: Consider whether you plan to purchase an electric vehicle or add more electrical appliances.
- Budget: Compare the complete installed cost after any applicable discount.
An appropriately sized battery can help balance upfront costs with practical energy benefits.
What Should You Check Before Accepting a Battery Quote?
Before choosing a battery installer, take time to compare different systems and understand exactly what is included in the quoted price.
Ask your installer about:
- The battery’s nominal and usable storage capacity.
- The total installation cost before and after the government discount.
- The estimated discount and how it will be applied.
- The battery and inverter warranty conditions.
- Expected energy savings and estimated payback period.
- Backup power capability and any additional equipment required.
- Compatibility with your existing solar system.
- Installation, commissioning and ongoing support.
Make sure the quote clearly explains the discount and any additional costs. The government recommends comparing multiple quotes and checking product and installer accreditation before proceeding.
Is Now a Good Time to Install a Home Battery in Melbourne?
For homeowners who already have solar panels, battery storage may be worth considering, particularly if a significant amount of electricity is used after sunset.
The Cheaper Home Batteries Program can help reduce the initial investment for eligible systems. However, the discount is scheduled to decrease over time, so the amount available will depend on the applicable rules when the installation is completed and certified.
Rather than rushing into a purchase, compare battery options, understand your household’s energy requirements and consider the expected financial benefits over the system’s lifetime.
A properly designed solar and battery system can help improve household energy management and make greater use of renewable electricity.
Speak to Aussie Energreen About Home Battery Installation
Thinking about adding battery storage to your Melbourne home?
Aussie Energreen can help you explore solar and battery solutions suited to your property’s energy requirements. Whether you already have solar panels or are considering a complete solar and battery upgrade, understanding your options is the first step towards making an informed decision.
Contact our team to discuss your requirements and request a quote.
Aussie Energreen
- Phone: 1300 231 289
- Email: info@aussieenergreen.com.au
- Website: https://aussieenergreen.com.au/
Program discounts and eligibility requirements are subject to government rules and may change. Individual eligibility, discount amounts and installation costs should be confirmed before entering into an agreement.
Frequently Asked Questions
1. What is the Cheaper Home Batteries Program?
It is an Australian Government initiative that provides a discount on eligible small-scale battery installations connected to new or existing solar PV systems.
2. How much discount can Melbourne homeowners receive?
The government describes the discount as around 30% of the upfront installation cost. The actual amount depends on usable battery capacity, the applicable STC factor and the installation date.
3. Can I receive the discount if I already have solar panels?
Yes. Eligible batteries can be connected to an existing solar PV system, provided the system and installation meet the program requirements.
4. What battery sizes are eligible?
Battery systems with a nominal capacity between 5 kWh and 100 kWh may qualify. However, STCs are only provided for the first 50 kWh of usable capacity.
5. Do I need to apply for the discount myself?
In most cases, no. An eligible installer or retailer can manage the certificate process and pass the discount on through the installation quote or an agreed post-installation arrangement.
6. Will a home battery provide power during a blackout?
Some battery systems offer backup functionality, but this depends on the equipment and installation configuration. Homeowners should confirm backup requirements with their installer before purchasing.
7. Will the battery discount remain the same until 2030?
No. The STC factor is scheduled to decrease every six months until the program ends in 2030. The available discount can therefore change over time.
8. Can I install a battery without solar panels and receive the discount?
No. Under the program, eligible battery systems must be connected to a new or existing solar PV system. A battery that only stores electricity purchased from the grid is not eligible.
