Coalition plan to axe home battery discount: what it means for costs
The Coalition says it would scrap the Cheaper Home Batteries Program. Here is what that could mean for the price of solar and battery projects.
The Liberal and National parties have announced they would axe the Cheaper Home Batteries Program, according to the Smart Energy Council. Nothing has changed for households yet: the program is still running and this is a policy proposal. If you are planning a battery, the discount available at the time of installation is what counts.
What has been reported
The Smart Energy Council, the industry body for renewable energy, says it was dismayed by the announcement. According to the council:
- The program has helped more than a million households, businesses and community facilities install batteries since it started in July 2025.
- Figures from the Australian Energy Market Operator show wholesale electricity prices fell 27 per cent compared with the same quarter last year, with growing battery capacity helping to lower evening peak prices.
- The program supports about 9,000 accredited battery installers, along with apprentices.
The council's chief executive described it as a "cost-of-living scheme, not a green scheme". That is the industry's view, and the policy is likely to be argued over politically. We have not independently verified the figures, and we are not taking a side.
How the discount works today
The federal program gives a discount on home batteries through certificates. It reduces every six months until 2030, so waiting has a cost even without any change of government policy. Solar panels and heat pump hot water systems have a separate federal discount through small-scale technology certificates (STCs), which also steps down each year until the scheme ends in 2030.
State programs sit alongside these. Victoria's Solar Homes program offers a solar panel rebate of up to $1,400, with a household income cap of $150,000 from 1 July 2026. In Western Australia, the residential battery scheme offers up to $1,300 (Synergy) or $3,800 (Horizon Power) with virtual power plant participation.
What it means for project costs
Our figures include GST and assume the discounts available now are already reflected in what installers quote. A typical 6 kWp solar system without a battery sits at $8,900, within a range of $6,950 – $11,600.
Adding a battery changes that. Our figures for the same system with different battery sizes:
- 5 kWh battery: $8,900
- 10 kWh battery: $10,400
- 13.5 kWh battery: $11,400
For the full comparison, see the table below.
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| No battery | $7,500 | $5,850 – $9,750 | – |
| 5 kWh battery | $8,900 | $6,950 – $11,600 | – |
| 10 kWh battery | $10,400 | $8,100 – $13,500 | – |
| 13.5 kWh battery | $11,400 | $8,850 – $14,800 | – |
If the discount were removed, the gap between quoted and undiscounted prices would fall on the buyer. We will not guess at a figure, because it depends on battery size, timing and the final policy. What we can say is that the certificate discount is a large part of why battery quotes look the way they do, so any change is likely to be felt most on bigger batteries.
What to do if you are considering a battery
- Get quotes that show the discount separately. Ask the installer to list the system price, the certificate discount and the final amount, so you can see what is driving the number.
- Don't rush because of a headline. The discount already falls every six months, and a proposal is not law. Make the decision on your own payback: your usage, your tariff and how much solar you export.
- Check licensing. Electrical work must be done by licensed tradespeople under state licensing, and a Certificate of Electrical Safety may be needed in Victoria.
- Compare quotes. Use our "is my quote fair" tool to check a quote against typical market prices before you sign.
How we calculate
Our estimates are built from labour hours multiplied by local rates, plus materials, and checked against market prices and real quotes. We update them as prices and policy change. Our full guide to costs for this project is at Solar panels, and if you are also thinking about hot water, Heat pump hot water shows a typical installed price of $4,500.
We will update this article if the policy position changes.