Government announces $4.9 billion funding boost and changes to discounting regime
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Changes to the discount program starting from May 1, 2026 were also announced.
In the old system, the same discount was also applied to storage capacity. This meant that some larger battery systems were sold cheaper than smaller models.
The changes are designed to ensure that the 30 percent rebate is applied more evenly across small, medium and large-sized home battery categories, with support reduced in proportion to battery size.
For example, under the current plan, a customer would pay $8,305 for a 13.5-kilowatt-hour Tesla battery after discounting the $12,950 sticker price. According to the new regime, starting from May, the customer will pay $ 9,553.
FOXESS’ relatively large 42-kilowatt-hour system will cost $6999 after discounting the $21,392 sticker price. According to the changes, its cost will be $ 15,230. The government has said it is confident that prices for many models will continue to fall as incentives boost sales and increase competition in the retail market.
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The program is limited to homes with solar panels, but homeowners can still benefit from the program if they install the panels and battery at the same time.
According to the government, a household that installs a 10-kilowatt-hour rooftop solar system can save approximately $1,000 a year in electricity costs. If they also install a 15 kilowatt-hour battery, they can save another $600 per year.
Kilowatts refer to the rate at which something charges or discharges energy, while kilowatt-hours (kWh) measure the amount of energy that thing can store. For example, a kilowatt-hour battery can pump out one kilowatt of energy in 60 minutes.
The Smart Energy Council, which represents home battery dealers and installers, welcomed the changes to the rebate scheme.
“Giving Australia’s four million solar homes the ability to time-shift the use of energy generation is a consumer energy revolution,” said John Grimes, Chief Executive of the Smart Energy Council.
The government has said it is confident that prices for many models will continue to fall as incentives boost sales and increase competition in the retail market.
Experts told this piece that the average household of four, consisting of two adults and two children, should consider installing a battery rated between 10 kWh and 15 kWh, given that they have at least an average-sized rooftop solar panel installation.
The popular fringe benefit tax exemption for electric vehicles applies to cars priced below $91,387. The government announced that it has waived $1.35 billion in taxes this fiscal year.
