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Treasury Drafts Options to Scale Back the $7 Billion Home Battery Rebate
Treasury drafts options to scale back the $7 billion home battery rebate as it seeks spending cuts
Key points
- The home battery scheme has subsidised more than 600,000 systems since coming into effect in July 2025.
- The scheme's immense popularity has repeatedly blown out the government's cost estimates.
- Energy Minister Chris Bowen has hit social media to defend the popular rebates.
Why it matters. The cuts could reshape a popular household rebate ahead of the mid-year budget update, setting up a clash between Treasury and the energy minister.
Treasury is drafting options to scale back the government's $7 billion home battery scheme as it hunts for spending cuts before the mid-year budget update. The scheme has subsidised more than 600,000 systems since it came into effect in July 2025, but its immense popularity has repeatedly blown out the government's cost estimates. Energy Minister Chris Bowen, who has taken to social media to defend the popular rebates, is set for a showdown with Treasury.
Latest updates
Treasury Drafts Options to Scale Back the $7 Billion Home Battery Rebate
The Treasury is drafting options to scale back the federal government's $7 billion home battery scheme, according to a report published on November 6, 2026. The scheme pays generous rebates on the upfront cost of home batteries, and Treasury is looking for savings ahead of the mid-year budget update. Energy Minister Chris Bowen has resisted the plan and used social media to defend the rebates, which he says are popular with households. The dispute sets Treasury against the energy portfolio over how much the scheme should cost. Any changes would need to be decided by the government before the mid-year budget update.