The Albanese government is considering a second raid on its flagship Cheaper Home Batteries program in just six months, as Treasurer Jim Chalmers scours the balance sheets for savings ahead of the May budget.
Despite the scheme's immense popularity, fresh modelling suggests the $7.2 billion policy remains a prime target for cost-cutting.
Launched in July 2025, the program originally offered 30% rebates to incentivise renewable storage.
However, a massive uptake blew the initial $2.3 billion estimate by $11 billion, forcing a December intervention to cap battery sizes and adjust funding.
Now, the government is weighing even tighter restrictions, including lowering discount levels or an early wind-up of the scheme.
While the program has installed 250,000 batteries—bolstering Labor’s 82% renewables target—it has drawn fierce fire from the Coalition.
Nationals Senator Matt Canavan labelled the subsidy "middle-class welfare on steroids," arguing it disproportionately benefits wealthy homeowners while leaving low-income renters to face rising power prices.
Minister for Climate Change and Energy Chris Bowen has previously used the scheme's "rocketing uptake" to taunt the Opposition, but he declined to comment on the latest modelling.
With the EV tax incentive also under review, the Treasurer signalled that more "difficult decisions" are imminent. "We’ve put our shoulder to the wheel when it comes to savings," Chalmers said, "and there will be more to come in May."