What changes on 1 January 2027?
The federal battery discount steps down, and it keeps stepping down until 2030. Figures were checked against DCCEEW and the Clean Energy Regulator on 7 November 2026.
On 1 January 2027 the federal battery STC factor falls from 6.8 to 5.7, about 16% lower. The program continues, stepping down each January and July until 2030. Your factor depends on the date your electrical compliance certificate is issued, so a certificate dated 31 December 2026 or earlier gets 6.8.
Answered by Chris Bull, Managing Director Chris Bull on LinkedIn (opens in a new tab).
The factor from now until 2030
The STC factor sets how many certificates a battery earns for each kilowatt-hour of usable capacity. These are the published figures.
- May to December 2026: 6.8
- January to June 2027: 5.7
- July to December 2027: 5.2
- January to June 2028: 4.6
- July to December 2028: 4.1
- January to June 2029: 3.6
- July to December 2029: 3.1
- January to June 2030: 2.6
- July to December 2030: 2.1
How the discount is worked out
Your discount depends on usable capacity, the factor and the value of an STC. Since 1 May 2026 the factor also tapers with size.
The STC Clearing House price is fixed at $40 before GST. Open market prices move, and the Clean Energy Regulator reports they stayed close to $40 through the June 2026 quarter.
- Up to 14kWh usable: full factor
- Above 14kWh and up to 28kWh: 60% of the factor
- Above 28kWh and up to 50kWh: 15% of the factor
- Above 50kWh usable: no STCs
What it means by battery size
This is our arithmetic from the published rules, at $40 an STC. It is a guide to the size of the change. It is not a quote, and retailers may include fees, so check the discount shown on your quote.
- 10kWh usable: 68 STCs now ($2,720), 57 from January ($2,280)
- 14kWh usable: 95 STCs now ($3,800), 79 from January ($3,160)
- 20kWh usable: 119 STCs now ($4,760), 100 from January ($4,000)
- 28kWh usable: 152 STCs now ($6,080), 127 from January ($5,080)
What counts as installed
The federal department says a battery counts as installed from the date a certificate of electrical compliance, or the state equivalent, is issued. The STC factor on that date applies.
Paying a deposit or signing a contract does not set your rate. Ask any installer how they will handle your date if the job moves into January.
Who qualifies
The battery must be new, installed with new or existing solar, and on the Clean Energy Council approved list. A Solar Accreditation Australia installer with a battery endorsement must install it. A grid-connected battery must be able to join a virtual power plant, but you do not have to join one.
One discounted battery is allowed per premises. It must stay there until the warranty ends or the end of 2030, whichever is later.
Should I rush to beat the date?
Only if the battery suits your home. The government itself warns that bigger is not always better, and a battery too large for your solar or inverter can limit the benefit.
The step down is real, but it is one input. Your usage, your evening load and your electricity plan count over the whole life of the system. We work through those at a bill audit and tell you what date we can offer.
Common questions
When does the solar battery rebate end?
It does not end on 1 January 2027. The published factors step down every six months until December 2030. The department reviews the discount at least annually, so later figures could change.
What is the current rebate for solar batteries?
The factor is 6.8 until 31 December 2026, and the program aims for around 30% off upfront cost. The first 14kWh of usable capacity earns the full factor.
Is it a 16% rise in battery prices?
No. The factor falls about 16%, which reduces the discount. Your final price also depends on what the system costs and how much of the discount your retailer passes through.
Can I claim the STCs myself?
Yes. You can keep the right to create STCs and trade them through the REC Registry, but you then forgo the retailer’s discount.
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