What's changing with the federal battery rebate?

On 1 January 2027 the federal Cheaper Home Batteries discount drops from 6.8 to 5.7 certificates for each usable kWh, about 16% less, so a 13.5 kWh battery goes from about $3,350 off to about $2,800 off (Clean Energy Regulator, page updated 31 July 2026).

It drops again on 1 July 2027 and every 6 months after that, down to 2.1 in the second half of 2030. The install date decides which factor applies, not the date you sign. There's no income or property test. Checked 4 October 2026.

The federal battery discount by install date, 2026 to 2030.

The factor is the number of certificates for each usable kWh on the first 14 kWh. Dollar values use $37 a certificate, today's typical installer price; the certificate price itself can move.

Cheaper Home Batteries STC factor by install period, Clean Energy Regulator
InstalledFactor (certificates a kWh)About a kWh, first 14 kWh10 kWh battery13.5 kWh battery
1 January to 30 April 20268.4about $311about $3,100about $4,200
1 January to 30 June 20275.7about $211about $2,100about $2,800
1 July to 31 December 20275.2about $192about $1,900about $2,600
1 January to 30 June 20284.6about $170about $1,700about $2,300
1 July to 31 December 20284.1about $152about $1,500about $2,050
1 January to 30 June 20293.6about $133about $1,350about $1,800
1 July to 31 December 20293.1about $115about $1,150about $1,500
1 January to 30 June 20302.6about $96about $950about $1,300
1 July to 31 December 20302.1about $78about $800about $1,050

Every kWh above 14 earns 60% of the factor, up to 28 kWh, and every kWh above 28 earns 15%, up to 50 kWh. Nothing above 50 kWh usable counts.

What a December install saves over a January install, by battery size.

Same battery, same price per certificate, installed either side of 1 January 2027.

Federal battery discount, installed by 31 December 2026 versus from 1 January 2027
Usable capacityInstalled by 31 Dec 2026Installed from 1 Jan 2027Difference
5 kWhabout $1,250about $1,050about $200
10 kWhabout $2,500about $2,100about $400
16 kWhabout $3,800about $3,200about $600
20 kWhabout $4,400about $3,700about $700
27 kWhabout $5,500about $4,600about $900
40 kWhabout $6,050about $5,050about $1,000

What changed in 2026?

The factor dropped from 8.4 to 6.8 certificates a kWh on 1 May 2026, which is the change most installer pages are still talking about. The size taper applies on top: 100% of the factor on the first 14 kWh, 60% from 14 to 28 kWh and 15% from 28 to 50 kWh (Clean Energy Regulator). So the discount on a large battery is much smaller than its capacity suggests: a 40 kWh battery gets about $6,050, not three times the 13.5 kWh figure.

Is the battery rebate ending?

Not on a single date. The regulator publishes a factor for every 6 months to the end of 2030, each one lower than the last, and it says the factor is set so the discount stays around 30% of the upfront cost as battery prices fall. The last published period, July to December 2030, is 2.1 certificates a kWh.

Should I install before 1 January 2027?

If you were going to buy a battery anyway, a December install is worth about $400 more on 10 kWh and about $550 more on 13.5 kWh. What matters is the date the battery is installed. If you sign in December and the job slips into January, the certificates are worked out at 5.7, so get the install date on the contract and ask who carries the difference if it moves.

Don't buy a bigger battery than you need to chase the discount: above 14 kWh each extra kWh earns only 60% of the factor, and only one battery per home can ever claim.

Does 1 January 2027 change the solar panel rebate too?

Yes. Solar certificates are worked out over the years left in the scheme, which drops from 5 to 4 on 1 January 2027. A 6.6 kW system in Melbourne goes from 39 certificates to 31, about $296 less; in Sydney or Brisbane it goes from 45 to 36. The STC calculator works it out for your postcode.

Want the figures for your address?

Five taps, no email or phone number. The next page shows the published figures for your postcode and the checks to run on any quote. If you'd like a quote, Tidy Energy, our partner installer, answers the phone.

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The zone, the state programs and the install counts all hang off it. Nothing else about your address is asked or kept.

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Questions people ask.

What are the federal battery rebate changes?

The certificate factor steps down every 6 months. It's 6.8 certificates a usable kWh for installs from 1 May to 31 December 2026, then 5.7 from 1 January 2027 and 5.2 from 1 July 2027, down to 2.1 in late 2030. On a 13.5 kWh battery that's about $3,350, then $2,800, then $2,600. Checked 4 October 2026.

When does the battery rebate drop?

On 1 January 2027 (6.8 to 5.7 certificates a kWh) and again on 1 July 2027 (to 5.2). The install date decides which factor applies.

How much less will I get if my battery is installed in January?

About $400 less on a 10 kWh battery and about $550 less on 13.5 kWh, at $37 a certificate.

How many times can I claim a battery rebate?

Once. Only one battery system per home can claim federal certificates (one per meter for a grid-connected home), and a battery added later at the same address doesn't get any. Choose the size you need the first time.

Is the battery rebate means tested?

No. The federal discount has no income or property test, and the 1 January change doesn't add one.

Do state battery rebates change on 1 January too?

The 1 January 2027 drop is federal. State programs run on their own rules: WA's Residential Battery Scheme and the NSW virtual power plant incentive had no published change when we last checked their pages on 1 October 2026.

Is this a government website?

No. Rebate Index is an independent reference. The figures come from the Clean Energy Regulator, which runs the battery certificates.

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