Side by side
Battery rebate before and after 1 May 2026: what changed
In short
From 1 May 2026 the program counts the first 14 kWh at the full factor, 14 to 28 kWh at 60% and 28 to 50 kWh at 15%. Small and mid-size home batteries feel the factor step more than the tiers; large batteries feel the tiers most.
If you quoted a battery in March and again in June, the second number was probably lower and the difference had two causes. The factor stepped down, and from 1 May 2026 the program began tiering capacity. This page puts the two periods next to each other.
The two periods side by side
| Before 1 May 2026 | From 1 May 2026 | |
|---|---|---|
| Factor | 9.3 (Jul to Dec 2025), then 8.4 (Jan to Apr 2026) | 6.8 (May to Dec 2026) |
| Capacity counted | Eligible capacity up to 50 kWh at the full factor | First 14 kWh at 100%, 14 to 28 kWh at 60%, 28 to 50 kWh at 15% |
| Eligibility | 5 to 100 kWh usable, up to 50 kWh eligible | Unchanged |
| Evidence | Earlier photo rules | New battery photo and evidence rules from 1 March 2026 |
The factor then steps down to 5.7 on 1 January 2027 and 5.2 on 1 July 2027, continuing down to 2030. Always quote the factor for the installation date, not the date of the quote.
Worked examples (illustrative)
Using usable kWh and STCs rounded down:
13.5 kWh battery. Under 14 kWh, so the tiers do not bite.
- Jan to Apr 2026: 13.5 x 8.4 = about 113 STCs.
- From 1 May 2026: 13.5 x 6.8 = about 91 STCs.
- The drop is the factor, not the tier.
30 kWh battery.
- Jan to Apr 2026: 30 x 8.4 = about 252 STCs.
- From 1 May 2026: 14 x 6.8 = 95.2, plus 14 x 60% x 6.8 = 57.1, plus 2 x 15% x 6.8 = 2.0, about 154 STCs.
- Both the factor and the tiers apply.
At STC prices of roughly $38 to $40 at the time of writing, 91 STCs is about $3,460 to $3,640. These examples are for illustration; use the battery STC calculator for yours.
What the tiers mean for sizing
The first 14 kWh earns the full factor, and the next 14 kWh earns 60% of it. A customer choosing between a 13.5 kWh and a 27 kWh battery therefore does not get double the STCs. Whether the larger battery is worth it is a question about the household’s load and solar, not just the rebate, and we do not advise on that.
Paperwork that also changed
New battery photo and evidence rules applied from 1 March 2026. If your claims are bouncing, see our battery submission guide and top STC claim rejection reasons. The program’s budget was expanded from $2.3bn to $7.2bn, as reported.
Questions customers ask
Customers who received an early quote often ask whether the earlier figure can be honoured. The answer depends on the installation date and the contract, not on the quote date, so check what the quote said and when the install happens. Others ask whether waiting is worthwhile: the factor steps down every six months, to 5.7 on 1 January 2027 and 5.2 on 1 July 2027, so a later install earns fewer STCs, all else equal. That is a statement about the scheme, not advice to buy. Whether a battery makes sense depends on the household’s usage and solar, and the rebate is only one input. If a customer asks you to guess the future STC price, decline: say what it has been at the time of writing and that it moves.
A fair verdict
The 1 May change reduced the rebate on larger batteries more than on small ones, and the six-monthly factor steps reduce it for everyone. That is the program working as designed, not an error in your calculator. Read the Cheaper Home Batteries installer guide, check the battery STC pillar, and see today’s rates on /pricing/. For registration differences between batteries and solar, see battery STC vs solar STC registration.
How we wrote this. Energy Merchants is a certificate trader, so we have a horse in this race. Statements about other providers are taken from their own public websites on the date shown above and are attributed. If something here is out of date, tell the desk and we will fix it.
Sources: Clean Energy Regulator: Cheaper Home Batteries Program
Questions
Before you decide
What changed on 1 May 2026?
What is the factor now?
Does a bigger battery always earn more STCs?
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