The federal battery rebate drops on 1 January 2027: what it means
Updated 14 October 2026
The federal Cheaper Home Batteries Program gives a discount on a home battery installed with solar. The discount is worked out using an STC factor, and that factor drops every six months until the end of 2030. The next drop is on 1 January 2027, from 6.8 to 5.7.
How much less, by battery size
At an example certificate (STC) price of $38:
| Usable battery size | Installed by 31 Dec 2026 | Jan to Jun 2027 | Jul to Dec 2027 |
|---|---|---|---|
| 10 kWh | $2,584 | $2,166 | $1,976 |
| 13.5 kWh | $3,458 | $2,888 | $2,660 |
| 20 kWh | $4,522 | $3,800 | $3,458 |
| 30 kWh | $5,852 | $4,902 | $4,484 |
For a 13.5 kWh battery, that's $570 less from 1 January, and another $228 less from 1 July 2027.
How the discount is worked out
Since 1 May 2026, the first 14 kWh of usable capacity earns the full STC factor, capacity over 14 and up to 28 kWh earns 60% of it, and over 28 up to 50 kWh earns 15%. Nothing is earned above 50 kWh. The total is rounded down to whole certificates, then multiplied by the certificate price.
Example: 13.5 kWh installed in December 2026 is 13.5 x 6.8 = 91.8, rounded down to 91 certificates. At $38 each, that's $3,458. In January 2027 it's 13.5 x 5.7 = 76.95, so 76 certificates, or $2,888.
Which date counts
The install date is the date the electrical certificate of compliance is signed, not the date you sign the quote or pay a deposit. A battery that's ordered in December but installed and signed off in January gets the January rate.
The rates to 2030
| Installed | STC factor |
|---|---|
| May to Dec 2026 | 6.8 |
| Jan to Jun 2027 | 5.7 |
| Jul to Dec 2027 | 5.2 |
| Jan to Jun 2028 | 4.6 |
| Jul to Dec 2028 | 4.1 |
| Jan to Jun 2029 | 3.6 |
| Jul to Dec 2029 | 3.1 |
| Jan to Jun 2030 | 2.6 |
| Jul to Dec 2030 | 2.1 |
Who can get it
The battery must be installed with new or existing solar, have a nominal capacity (the figure on the label) of 5 to 100 kWh, be on the approved product list, be able to join a virtual power plant if it's connected to the grid, and be installed by an accredited installer.
Don't let the date decide for you
A few hundred dollars matters, but choosing the right size for how you use power matters more. A battery that's too big for your evening use may never pay for itself, rebate or not. Check the payback before you decide.
Try it: Battery rebate calculator: your discount by size and install date, plus a simple payback estimate.
Common questions
Is the certificate price always $38?
No. The price of STCs moves with the market, and installers use their own figure. Ask your installer what price they used in your quote.
Do I claim the discount myself?
Usually not. Most installers take the discount off your quote and claim the certificates themselves.
Are there state rebates too?
Some states and territories run their own battery programs. Check your state government's energy website.
See every bill in one place
The Monthly Budget Planner tracks every bill and expense each month, so you can see where your money goes and what's left.
See the Monthly Budget PlannerSources
- Clean Energy Regulator: Cheaper Home Batteries Program
- Clean Energy Regulator: STC factors for batteries
- Federal Register of Legislation: explanatory statement for the 1 May 2026 changes (PDF)
Last checked 14 October 2026. Prices in the examples are examples only: use the rate on your own bill. General information only, not financial advice.