Don't get caught by the rebate drop
From 1 January 2027, the solar STC discount shrinks by about 20% and the home battery rebate steps down again. Systems installed by 31 December 2026 lock in today's bigger discount.
Time left to lock in 2026 rates
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What's changing on 1 January 2027
Solar
Deeming drops 5 → 4 years
STCs are calculated on a "deeming period" that falls from 5 to 4 years. That's roughly 20% fewer certificates for the same system — so a noticeably smaller upfront solar discount.
Battery
Factor drops 6.8 → 5.7
Under the Cheaper Home Batteries Program, the STC factor steps down from 6.8 to 5.7 on 1 Jan 2027 (then 5.2 from July) — trimming the battery rebate yet again.
It's the install date that counts — not when you sign or pay a deposit. Your system must be fully installed and commissioned on or before 31 December 2026 to lock in the 2026 rates.
Battery rebate step-down schedule
The battery STC factor is scheduled to fall roughly every six months until the scheme ends in 2030.
How the capacity tiers work (since 1 May 2026)
100%
First 0 – 14 kWh
Full rebate factor applies
60%
Over 14 – 28 kWh
Reduced factor on this portion
15%
Over 28 – 50 kWh
Minimal factor on this portion
Certificates are capped at 50 kWh of usable capacity and partial totals are rounded down. Typical households rarely need more than a 6–13 kWh battery.
Why it pays to look into it now
- The discount only gets smaller — rebates step down every year through to 2030.
- Good installers get booked out before deadlines, so last-minute jobs can miss the cut-off.
- It’s the install date that locks in the rate, not your contract date.
- Comparing early means you buy the right size for your home — not a rushed, oversized system.
Official sources & further reading
Clean Energy Regulator — Calculate STC entitlements
Solar deeming periods and battery factors, including the 2027 changes.
DCCEEW — Cheaper Home Batteries Program
Official battery reduction schedule and capacity tiers.
DCCEEW — STCs for batteries
Usable capacity, rounding and installation-date rules.
The home battery rebate is changing. Is it still worth it and what’s the right size?
Explains the revised battery subsidy and size tiers.
Battery installation rates collapse as “solar-coaster” strikes back
Reports on the market following the May rebate changes.
“Smash-hit” battery scheme topped up, subsidies trimmed
Reports on the expanded funding and reduced subsidies.
Frequently asked questions
What is actually changing on 1 January 2027?
Two things step down together. For solar, the STC "deeming period" drops from 5 years to 4 years — that is roughly 20% fewer certificates for the same system, so a smaller upfront discount. For batteries, the STC factor under the Cheaper Home Batteries Program falls from 6.8 to 5.7, trimming the battery rebate again.
Does the deadline depend on when I sign or when it’s installed?
Officially, the discount is set by the date the system is installed — not the date you sign a contract or pay a deposit. To lock in the higher 2026 rates, the system needs to be installed on or before 31 December 2026. Your installer can confirm their timing and paperwork.
How do the battery capacity tiers work?
Since 1 May 2026 the battery rebate is tiered by usable capacity: the full factor applies to the first 14 kWh, 60% of the factor to capacity between 14–28 kWh, and 15% between 28–50 kWh. Certificates are capped at 50 kWh, and partial totals are rounded down.
Is the solar/battery rebate ending completely?
Not immediately. The small-scale scheme that underpins the solar discount is legislated to phase down each year and end on 31 December 2030. Battery rebate factors are scheduled to step down roughly every six months until then. So the discounts shrink over time rather than stopping overnight.
Should I rush to beat the deadline?
The right battery size should match your home’s actual usage, not just a subsidy deadline. But if you were already planning solar or a battery, installing before 31 December 2026 locks in a bigger discount. We help you compare options so you can decide with the real numbers in front of you.
Don't be late — the clock is ticking
Lock in today's bigger solar and battery rebates before 1 January 2027. Compare your options now — free and no obligation.