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Battery STCs and Cheaper Home Batteries Program

Battery STC factor 2027: 5.7 from 1 January

Short answer

The battery STC factor is 5.7 for installs from 1 January 2027, down from 6.8 for 2026, and it steps down again to 5.2 on 1 July 2027. The tiers by battery size stay, so a 14 kWh battery earns about 79 STCs instead of 95.

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

For batteries installed from 1 January to 30 June 2027 the STC factor is 5.7, and from 1 July 2027 it is 5.2. The 2026 factor is 6.8, so the reduction is 1.1 certificates per kWh, about 16 per cent.

Worked examples at 5.7

Applying the same tier rules as 2026 (full factor to 14 kWh, 60 per cent from 14 to 28 kWh, 15 per cent from 28 to 50 kWh):

Usable size 2026 STCs 2027 STCs Change
10 kWh 68 57 -11
14 kWh 95 79 -16
20 kWh 120 101 -19
28 kWh 152 127 -25
50 kWh 175 146 -29

Counts are approximate and round down on the actual claim.

What to do with the numbers

A 14 kWh battery loses 16 STCs. At roughly $38 to $40 a certificate, that is around $600 less discount. If hardware prices are flat, the customer pays more out of pocket for the same battery after 1 January. If your costs fall, the net price can hold, but the headline discount will still look smaller.

Customers and sales teams often ask whether a delivered-by-31-December promise is honoured when the install slips. It is not, because the factor is tied to the install date. Write that into your terms.

What changes for quoting software

If your quotes are built in a spreadsheet or a CRM, add the install date as a driver of the factor, with 6.8 up to 31 December 2026, 5.7 from 1 January to 30 June 2027 and 5.2 from 1 July 2027. Then add the three tiers and the 50 kWh cap. Many early errors in battery quotes come from applying a single per-kWh figure to every size.

From the desk: Run a December job list now. Any battery that needs a switchboard upgrade, DNSP approval or stock you do not hold is at risk of landing in January at 5.7.

What this means for installers

Re-price the 2027 pipeline, update quote templates, and recheck the factor before every changeover. Install-date discipline is a margin lever. The battery STC pillar and the cheaper home batteries installer guide have further detail. To see what a certificate pays today, check our pricing or read what an STC is worth.

Follow-up questions

People also ask

Is the 2027 factor locked in?
It is legislated at the time of writing, but check the Clean Energy Regulator before quoting, since regulations can be amended.
What happens in 2028?
The factor is scheduled to fall every six months, to 5.2 on 1 July 2027 and lower after that. Look up the figure for the exact install date.

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