Battery rebate changes
Battery rebate changes: what drops on 1 January 2027
The federal battery rebate falls about 16% on 1 January 2027. A 10 kWh battery gets about $400 less, a 13.5 kWh battery about $550 less and a 20 kWh battery about $700 less. It is still a rebate after that date, and the program keeps running, stepping down every six months, until the end of 2030. The date your battery is installed sets the rate, not the date you were quoted.
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The federal Cheaper Home Batteries discount is open in every state and territory, with no income test. Batteries installed up to 31 December 2026 earn 6.8 STCs per usable kWh, worth roughly $250 per kWh at mid-2026 certificate prices. From 1 January 2027 the factor becomes 5.7, then keeps reducing every six months until the program closes at the end of 2030.
What changes on 1 January 2027
The number of STCs (small-scale technology certificates) your battery earns per usable kWh falls from 6.8 to 5.7. That is about 16% less for every battery size, because the 1 May 2026 size tiers stay the same and simply apply to the lower factor.
| Usable capacity | Installed by 31 Dec 2026 | Installed from 1 Jan 2027 | Difference |
|---|---|---|---|
| 10 kWh | about $2,500 | about $2,100 | about $400 less |
| 13.5 kWh | about $3,400 | about $2,850 | about $550 less |
| 20 kWh | about $4,400 | about $3,700 | about $700 less |
Illustrative, at mid-2026 STC prices: about $250 per usable kWh on the first 14 kWh and about $150 per kWh from 14 to 28 kWh before the step-down. Your installer confirms the actual discount for your battery and install date. Run your own size through the battery rebate calculator.
Full step-down schedule to 2030
The factors below are set in the Renewable Energy Legislation Amendment (2026 Measures No. 1) Regulations 2026. The rate applies to the period in which your installation is certified, so each date is a cut-off.
| Installed | STCs per usable kWh | Approx. discount on 13.5 kWh |
|---|---|---|
| Now to 31 Dec 2026 | 6.8 | about $3,400 |
| 1 Jan 2027 to 30 Jun 2027 | 5.7 | about $2,850 |
| 1 Jul 2027 to 31 Dec 2027 | 5.2 | about $2,600 |
| 1 Jan 2028 to 30 Jun 2028 | 4.6 | about $2,300 |
| 1 Jul 2028 to 31 Dec 2028 | 4.1 | about $2,050 |
| 1 Jan 2029 to 30 Jun 2029 | 3.6 | about $1,800 |
| 1 Jul 2029 to 31 Dec 2029 | 3.1 | about $1,550 |
| 1 Jan 2030 to 30 Jun 2030 | 2.6 | about $1,300 |
| 1 Jul 2030 to 31 Dec 2030 | 2.1 | about $1,050 |
Dollar figures assume today’s STC price and are rounded to the nearest $50. STC prices move with the market, so the dollar value in any period can be higher or lower than shown; the factor itself is fixed in the regulations.
Does my quote date or install date count?
The install date counts. The factor is set by when your battery is installed and certified, not when you were quoted, signed or paid a deposit. A battery quoted in October but commissioned on 2 January 2027 gets the 5.7 rate.
Installers get busy before every step-down. Lead times of four to eight weeks are common in the run-up to summer, longer in regional areas, and some jobs need a switchboard upgrade or network approval first. In practice, a contract signed by early November is the realistic way to be installed before 1 January. If you are signing later, ask the installer for a written install date and what happens to the price if they miss it.
What changed on 1 May 2026
The federal program began in July 2025. After very strong uptake, the Government expanded its funding (from about $2.3 billion to $7.2 billion) and changed how the discount is calculated for batteries installed from 1 May 2026:
- Tiered by size: the full factor applies to the first 14 kWh, 60% of it from 14 to 28 kWh, 15% from 28 to 50 kWh, and nothing above 50 kWh.
- New factor: 6.8 STCs per usable kWh, the starting point for the schedule above.
- Still open: the program did not end, and there is no income test.
- Same basics: 5 to 100 kWh nominal, paired with new or existing solar, VPP-capable, on the approved product list and installed by an accredited installer.
The tiers mean batteries up to 14 kWh get the full rate on every kWh, which is why most quotes sit in the 10 to 14 kWh range. See the federal battery rebate page for the full eligibility rules.
State battery incentives that do not change on 1 January
The 1 January 2027 step-down is federal only. State layers run on their own rules and dates, and where they exist they stack on top of the federal discount.
| State | Program | Status | Indicative value | More |
|---|---|---|---|---|
| NSW | PDRS VPP battery incentive | Open | Roughly $40 per usable kWh on the first 28 kWh at mid-2026 provider rates (about $540 on 13.5 kWh); must join a VPP | NSW battery rebate |
| WA | WA Residential Battery Scheme | Open | Up to $1,300 (Synergy) or $3,800 (Horizon Power), plus a no-interest loan up to $10,000 | WA battery rebate |
| ACT | Sustainable Household Scheme loan | Open | $2,000 to $20,000 at 3% over up to 10 years; zero interest up to $10,000 for concession holders | ACT battery rebate |
| SA | REPS VPP battery incentive | Priority households only | General-household funding ran out in May 2026; new funding expected early 2027 | SA battery rebate |
Indicative only. State amounts are set by providers and scheme rules, not by the federal step-down, and can change without notice.
Several older state schemes have already closed: the NSW BESS1 upfront rebate (June 2025), Queensland’s Battery Booster (May 2024), the SA Home Battery Scheme, the Tasmanian Energy Saver Loan Scheme (September 2025) and the NT Home and Business Battery Scheme (funding fully allocated). In those states the federal discount still applies.
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Official sources
Figures on this page were checked against these official pages on 11 October 2026. Scheme rules change; confirm the current settings before you sign anything.
- Australian Government (DCCEEW): Cheaper Home Batteries Program
- Clean Energy Regulator: battery eligibility and STCs
- Clean Energy Regulator: battery rebate changes from 1 May 2026
- Federal Register of Legislation: Renewable Energy Legislation Amendment (2026 Measures No. 1) Regulations 2026 (battery STC factors to 2030)
Related pages
FAQ
Battery rebate changes questions
The federal Cheaper Home Batteries Program runs until 31 December 2030. It does not end on 1 January 2027, but the rate steps down on that date and every six months after it, from 6.8 STCs per usable kWh now to 2.1 in the final half of 2030.
Yes. On 1 January 2027 the factor drops from 6.8 to 5.7 STCs per usable kWh, about 16% less. It drops again to 5.2 on 1 July 2027. The size tiers introduced on 1 May 2026 stay the same.
At mid-2026 STC prices, about $400 on a 10 kWh battery, about $550 on a 13.5 kWh battery and about $700 on a 20 kWh battery. The exact amount depends on the STC price at the time and your battery size.
It already did. From 1 May 2026 the discount became tiered by battery size and the factor was set at 6.8 STCs per usable kWh. There is no further change in 2026; the next reduction is on 1 January 2027.
Yes, if the battery is installed on or after 1 January 2027. The rate is set by the install date, not the quote or contract date, so a quote written at today’s rate should be revised if the install slips into 2027. Ask your installer to confirm the install date in writing.
Yes. The schedule continues through 2028 at 4.6 STCs per usable kWh from 1 January and 4.1 from 1 July, which is roughly $2,300 and $2,050 on a 13.5 kWh battery at today’s STC price.
For batteries installed by 31 December 2026, about $250 per usable kWh on the first 14 kWh at mid-2026 STC prices: roughly $2,500 on 10 kWh, $3,400 on 13.5 kWh and $4,400 on 20 kWh. It comes off the installer’s invoice and there is no income test.
No. The step-down is federal only. The NSW PDRS VPP incentive, the WA Residential Battery Scheme and the ACT Sustainable Household Scheme loan run on their own rules. In SA, the REPS VPP incentive is open to priority households only, with new general funding expected in early 2027.
No. We’re an independent information and enquiry service and are not a government website. We don’t guarantee rebate approval.
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