As predictions go… I was pretty much bang on.
The Federal government have announced it will expand the Cheaper Home Batteries Program from original $2.3 billion to an estimated $7.2 billion over the next 4 years. This is expected to see more than 2 million Australians install a battery by 2030, delivering around 40 gigawatt hours of additional storage capacity. Which is great news for anyone considering getting off the grid or becoming more grid independent.
There are some changes that will come into effect on the 1st of May to try and slow the uptake of larger battery systems that have drained the original funding faster than expected. From the 1st of May it is my understanding that credits will slowly reduce down over time. For example from May to December the STC factor will drop from the current 8.4 to 6.8 and then to 5.7 in January to June of 2027 and so on. These STC’s are the calculation used by the installers to calculate the rebate amount you get back.
There are also changes to the size of the battery system and what you get for certain battery bank sizes. From the 1st of May 2026 the rebate not only reduces slightly but from 0 – 14Kwh the STC factor will be applied at 100%, from 14Kw up to 28Kwh the STC factor will be applied at 60% and every Kwh over 28Kwh up to 50Kwh will reduce down to an STC factor of 15%.
So what does all of this mean? Well, it means there are still going to be rebates available for batteries BUT you will get a bigger rebate on smaller battery systems. This will slow down the big 50Kwh battery installs we are seeing and settle it down to the 15-20Kwh of battery. Keep in mind that 20Kw is more than enough to run the average rural 3 bedroom house (gas cooking and hot water, fridge, freezer, water pumps, septic treatment plants, ceiling fans, computers lights etc and a 2.5Kw air conditioner all night). So 20Kwh to 30Kwh is heaps!
Locally and nationally the installers have been swamped with people rushing in trying to get the bigger rebate before it reduces on the 1st of May. Installers are booked out until June and further. I am also hearing reports of installers going broke in the cities as they try to cashflow the rebates. They claim it is taking up to 120 days to get rebate claims processed and installers just can’t carry that cashflow load. One installer in Sydney tells me he is owed just over $500,000 in rebates. Most are just smaller 1 – 3 person teams with rising costs of fuel and wages. So they are not only flat out, they are dropping like flies creating even more demand. Hey, it’s not like a federal funded program to turn to poo is it!
The recent bad weather has awakened the roaring beasts we call generators. Extended dark cloud periods will typically reduce the best of the systems batteries (ok, maybe not the 50Kwh systems) and people are forced to fire the generators. Three days or more of a generator running can cause people to develop what I call “generator tourretts”. There is something about the peaceful rural setting being shattered by the constant white noise of a generator…and the fumes, if they are close by. Anyway, the sun is out again and they can all take a rest once more…speaking of which, it’s time for me to do the same.
Megsy Out
Written by Jason Marshall
Chitchat Newspaper. April 2026.