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Government Adds Nearly $5 Billion, Redesigns Home Battery Rebates for 2026

Tapered discounts aim to curb oversized systems that drained funds.

Overview

  • Canberra will inject nearly $5 billion more into the scheme, lifting the four‑year allocation to $7.2 billion to keep rebates available.
  • From May 1, 2026, the full 30% discount applies up to 14kWh, then tapers for medium systems and again above 28kWh, with support still capped to the first 50kWh.
  • The government now forecasts 2 million home batteries by 2030 after about 160,000 installations since July.
  • The overhaul addresses per‑kWh incentives that steered buyers to larger units and rapidly depleted funds, with quality and safety worries highlighted by a recent Sigenergy inverter recall.
  • Ministers briefed installers on further eligibility and funding adjustments under consideration, and flagged a review of the electric vehicle fringe benefits tax exemption.