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Checked 29 October 2026 against the Clean Energy Regulator

The battery rebate drops on 1 January 2027: what you lose

On 1 January 2027, the federal Cheaper Home Batteries rebate falls by about 16 % for every battery up to 14 kWh. For a typical 13.5 kWh battery, that is roughly $570 less. Here is what changes, why the installation date is what counts, and how to plan around it.

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For a 13.5 kWh batteryabout $3,458 now, $2,888 from 1 January 2027

Try your own size in the calculator →

What changes on 1 January 2027

The rebate is paid as small-scale technology certificates (STCs). The number of certificates a battery earns is its usable capacity multiplied by an STC factor, which the Clean Energy Regulator sets for each half-year.

InstalledSTC factor per usable kWh
May to December 20266.8
January to June 20275.7
July to December 20275.2
January to June 20284.6

The full schedule continues every six months to 2.1 in the second half of 2030. Source: Clean Energy Regulator, Solar batteries (page last updated 31 July 2026, read on 29 October 2026).

What it costs you, by battery size

Certificates are counted on usable capacity in three bands: the first 14 kWh at 100 % of the factor, 14 to 28 kWh at 60 %, and 28 to 50 kWh at 15 %. Dollar values below assume $38 per certificate, close to the market. The Clean Energy Regulator's clearing house pays a fixed $40 excluding GST, and the open market moves daily (CER, Renewable energy certificates). Your installer's price per certificate is what counts.

Usable capacityInstalled by 31 Dec 2026Installed Jan to Jun 2027DifferenceInstalled Jul to Dec 2027
10 kWh68 STCs, about $2,58457 STCs, about $2,166about $418 less52 STCs, about $1,976
13.5 kWh91 STCs, about $3,45876 STCs, about $2,888about $570 less70 STCs, about $2,660
20 kWh119 STCs, about $4,522100 STCs, about $3,800about $722 less91 STCs, about $3,458
30 kWh154 STCs, about $5,852129 STCs, about $4,902about $950 less118 STCs, about $4,484

Try your own size and install month in the rebate calculator.

The installation date is what counts

The Clean Energy Regulator states that the number of certificates for a battery depends on its capacity and its installation date (CER, Calculate STC entitlements, last updated 18 September 2026). Signing a quote in December does not lock in the 2026 factor if the battery goes in after New Year.

How to plan before the deadline

Does any state add to the federal rebate?

A few do, notably WA. See battery rebates by state.

Before you get quotes: the 7-point checklist