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Read MoreWhat’s Happening with the Home Battery Rebate? What Adelaide Homeowners Need To Know.
By Solar Energy Adelaide | 13 December 2025
In mid-2025, the Australian Government launched the Cheaper Home Battery Scheme, a $2.3 billion initiative aimed at making battery storage more accessible for households across the country. Designed to run until 2030, the program offers rebates to help homeowners offset the cost of installing eligible home battery systems, supporting both energy savings and the nation’s transition to renewable power.
However, just six months into the scheme, the response from Australian households has been overwhelming. Demand has significantly outpaced expectations, particularly for larger-capacity batteries, prompting the government to take swift action to ensure the program can continue over the long term.
On Friday, the government announced two major updates:
- An additional $7.2 billion in funding will be allocated to extend the life of the scheme.
- Several key changes will be introduced to the rebate structure, beginning 13 May 2026.
These changes will affect how rebates are calculated and how much support Adelaide households can receive, especially those planning to install larger battery systems. Below, we’ve summarised the key updates so Adelaide homeowners can plan ahead and make the most of the scheme while higher rebates are still available.
Why are changes being made to the battery rebate?
Let’s keep it simple:
- More people than expected are getting batteries (a good problem to have).
- The government wants the program to last until 2030 as planned.
- Larger batteries were getting big rebates, which meant funds were going fast.
- So, to stretch the budget further, they’re adjusting the rebate structure.
So what exactly is changing with the battery rebate and how will it affect Adelaide homeowners wanting to install a solar battery?
Here’s a breakdown of the two biggest changes coming into effect from May 13, 2026:
1. Battery Rebates Will Drop More Often Over Time
When the scheme started, the rebate amount was going to decrease slowly every year.
Now, because of high demand, the government will reduce the rebate more frequently – every six months – starting from May 2026. That means the longer you wait, the less rebate you’ll likely receive.
Here’s a quick look at how the maximum rebate will reduce over the coming years:
Year | Period | Existing STC factor | Proposed STC factor |
2026 | January – April | 8.4 | 8.4 |
2026 | May – December | 8.4 | 6.8 |
2027 | January – June | 7.4 | 5.7 |
2027 | July – December | 7.4 | 5.2 |
2028 | January – June | 6.5 | 4.6 |
2028 | July – December | 6.5 | 4.1 |
2029 | January – June | 5.6 | 3.6 |
2029 | July – December | 5.6 | 3.1 |
2030 | January – June | 4.7 | 2.6 |
2030 | July – December | 4.7 | 2.1 |
2. Larger Batteries Will Get Smaller Rebates
Another important change: bigger batteries will no longer get bigger rebates.
Originally, you’d get more rebate dollars for installing a larger battery (10kWh or above), which made sense on paper. But that quickly chewed through the budget. Now, the rebate will taper off for larger battery sizes, to spread the support more evenly.
The STC Factor will reduced according to the amount of capacity installed:
- From 0 kWh up to 14 kWh (inclusive): STC Factor applied at 100%.
- Every kWh greater than 14 and up to 28 kWh (inclusive): STC Factor applied at 60%.
- Every kWh greater than 28 and up to 50 kWh (inclusive): STC Factor applied at 15%.
So while you can still install a large battery system (especially if your home uses a lot of energy), just know that the rebate won’t scale up the way it used to.
What does this mean for Adelaide homeowners?
If you’re living in Adelaide or regional South Australia and thinking about solar batteries, here’s the bottom line:
- You still have time to access the full rebate before the May 2026 changes.
- If you’re considering a larger battery, you’ll get the best rebate by acting early.
- From May 2026 onwards, expect rebates to reduce every six months.
At Solar Energy Adelaide, we’ve been helping South Australian households navigate the solar industry for over a decade.
🔹 Local, family-run business with over a decade of experience
🔹 Customised solar solutions based on your home’s energy usage
🔹 Free, no-obligation assessment to determine whether upgrading makes sense for you
📞 Contact us today to discuss your options and get a personalised solar battery assessment!
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