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Australia Boosts Battery Rebate Budget to $7.2 Billion With Tiered Discounts

Officials aim to curb oversized purchases to spread access to more homes.

Overview

  • The government added nearly $5 billion to extend the popular home battery program, lifting total funding to about $7.2 billion after the initial $2.3 billion allocation was rapidly drained.
  • A tiered structure taking effect on May 1, 2026 will keep the full 30% per‑kWh rebate for systems up to 14 kWh, taper support for medium sizes, and reduce per‑kWh discounts above 28 kWh, with eligibility still referencing the first 50 kWh.
  • Ministers report about 160,000 installations since July and now forecast 2 million home batteries by 2030, doubling the outlook from six months ago.
  • Industry and analysts say the original per‑kWh design drove consumers toward larger-than-needed systems, concentrating subsidies and accelerating spending.
  • Installer groups welcomed the funding top-up and redesign, and note the scheme applies to solar homes with eligibility when panels and a battery are installed together.