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Battery STCs and Cheaper Home Batteries Program

Battery rebate drops on 1 January 2027: what it means

Short answer

On 1 January 2027 the federal battery rebate falls because the STC factor drops from 6.8 to 5.7. A 14 kWh battery loses about 16 certificates, roughly $600 at current prices. The factor is set by the install date, not the date you sign.

Written and checked by the Energy Merchants desk · Reviewed 2 October 2026 · For homeowners

On 1 January 2027 the rebate shrinks. It is already in the regulations, it is not a rumour, and it applies to every battery installed on or after that date.

The size of the drop

The factor falls from 6.8 to 5.7 certificates per kWh. The tiers by size stay in place. For a 14 kWh battery that means about 79 certificates rather than 95, a difference of roughly $600 at a market price of $38 to $40. For a 28 kWh battery the loss is about 25 certificates, around $1,000.

What to do in the next few months

If you are already planning a battery, the best step is to confirm a realistic install date with a firm. Many installers will be busy in the last quarter of the year, and switchboard upgrades, network approvals or stock delays can push a December job into January. Ask for a written commissioning date and what happens to the discount if it slips.

If you are not yet sure a battery makes sense, do not rush just for the rebate. A roughly 16 per cent cut is real money, but a battery that does not suit your usage is more expensive than the rebate saves. Look at your evening consumption, your tariff and any VPP offers. See is a battery worth it with the rebate.

What if you cannot make December

If you cannot get the battery commissioned in 2026, do not panic. The 2027 rebate is still thousands of dollars on a typical battery. Look at whether you can negotiate an adjusted price, a better warranty or a free upgrade in exchange for the delay, and make sure the revised quote shows the 5.7 factor.

From the desk: A signed contract does not freeze the factor. Only a commissioned battery does. Pay attention to who is responsible for delays in the contract.

What this means for you

Treat 31 December as the deadline for the 2026 rate and plan backwards. Check approvals early, confirm stock and agree what happens if the date moves. The battery STC pillar explains the scheme, how it works shows how installers turn certificates into your discount, and the 2027 rebate page has the numbers.

Follow-up questions

People also ask

Does signing a contract in December lock the old rebate?
No. The install date decides the factor, so a delayed installation can fall into the lower rate.
Will the rebate drop again later?
Yes. The factor is scheduled to fall every six months, to 5.2 on 1 July 2027 and lower after that, until the program ends in 2030.

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