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Battery STCs and Cheaper Home Batteries Program

What does the battery STC factor of 5.7 in 2027 mean?

Short answer

The battery STC factor is 6.8 per usable kWh for 2026 installs and steps down to 5.7 on 1 January 2027 and 5.2 on 1 July 2027, with further six-monthly steps to 2030. A 10 kWh battery earns about 68 STCs in 2026 and about 57 in 2027.

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

The factor is the multiplier that turns a battery’s usable capacity into certificates. It is 6.8 per kWh for installations in 2026 and 5.7 from 1 January 2027, and it now steps down every six months to 2030 until the program winds down in 2030. For installers and customers, it means a visible drop in discount for the same battery after the new year.

What the drop does

Certificates = eligible usable kWh x factor. The change from 6.8 to 5.7 is a fall of about 16 percent.

Usable capacity 2026 STCs 2027 STCs Difference
5 kWh 34 28 6
10 kWh 68 57 11
13.5 kWh 91 76 15
20 kWh 136 114 22

At roughly $38 per certificate at the time of writing, a 13.5 kWh battery loses around $570 of certificate value across the changeover. Prices move, so recalculate with the live rate.

Install date is what counts

The relevant date is the installation, not the quote or deposit. A battery contracted in November and installed in January gets the lower factor. Supply delays, switchboard upgrades and network approvals commonly push installs back a few weeks, so any job planned for December needs a firm path to completion.

What to tell customers

Show both numbers on the quote and say plainly what happens if the install date moves. Customers are rarely upset by a clear explanation; they are upset by a surprise at invoice time. Where the date risk is real, agree in writing who carries the difference.

From the desk: keep your battery evidence pack complete before the crew leaves site. A claim that is queried in January can be hard to defend if the install date is in doubt, so make sure the date is documented.

What this means for installers

Plan your Q4 around ready-to-go battery jobs, and make sure claims clear quickly. See the battery STC pillar, our installer guide to the program and the battery submission guide. Energy Merchants publishes its battery STC rate on the pricing page.

One further consequence is on pricing strategy. A fall of about 16 percent in the certificate discount will show up as a higher net price for customers in the new year unless battery prices fall to match. Some installers expect a rush in the final weeks of 2026, so being clear with customers about timelines is good service as well as good business.

Follow-up questions

People also ask

Does the factor apply on install date or contract date?
The factor depends on the installation date, so a job that slips into January gets the lower factor. Check the CER rules for the precise trigger.
Does the factor change the 50 kWh cap?
No. The cap on eligible capacity is separate from the per-kWh factor.

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