The federal battery rebate gets smaller on 1 January 2027, and again on 1 July 2027. Here is what that means, in plain words.
If you are thinking about a home battery, you have probably heard the rebate is “dropping”. It is true, but the detail matters: what changes, when, and what decides which rate you get. We build the rebate into every design and do the paperwork, so here is how it works.
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What the Cheaper Home Batteries rebate is
The federal Cheaper Home Batteries program runs through the Small-scale Renewable Energy Scheme, administered by the Clean Energy Regulator. An eligible battery creates small-scale technology certificates (STCs). Those certificates have a market value, and we take that value off your price at point of sale. You don’t apply for anything yourself.
To be eligible, the battery must:
- be between 5 and 100 kWh nominal capacity (certificates are only created for the first 50 kWh of usable capacity)
- be installed by a Solar Accreditation Australia (SAA) accredited installer with a battery endorsement
- be a model on the approved battery list
- be capable of joining a virtual power plant, for grid-connected homes
It works with new or existing solar. Only one battery claim is allowed per property.
How the rebate is worked out
The number of certificates is your battery’s usable capacity (in kWh) multiplied by the STC factor. Larger batteries are tapered: the full factor applies to the first 14 kWh, a reduced rate applies from 14 to 28 kWh, a much lower rate from 28 to 50 kWh, and nothing beyond 50 kWh.
Because certificates are traded on a market, the dollar value moves a little over time. That’s why we don’t publish a rebate amount. Your proposal shows the exact figure for your battery.
The step-down dates
| Battery installed | STC factor |
|---|---|
| Now to 31 December 2026 | 6.8 |
| 1 January to 30 June 2027 | 5.7 |
| 1 July to 31 December 2027 | 5.2 |
After that it keeps stepping down every six months until the scheme finishes at the end of 2030. The same battery creates fewer certificates with each step.
It’s set by the install date
This is the part people miss. The factor that applies is the one on the day your battery is installed, not the day you get a quote or sign. A battery quoted in December but installed in January gets the January factor.
A proper job takes a few steps: your energy assessment, the design, a site visit, and a connection application to Essential Energy, which has to be approved before we install. We’ll tell you honestly whether an install date before a step-down is realistic. We won’t rush the design or skip the site visit to beat a date.
Solar STCs step down too
Solar panels earn STCs as well, and the solar rebate also gets smaller each January. If you are doing solar and a battery together, both are built into your proposal. More on rebates: Your rebates.
Should you hurry?
The right size and the right install matter more than the date. But if you were going ahead anyway, an earlier install keeps the higher factor. If cash flow is the hold-up, the NSW 0% loan may help. See also battery sizing from your power bills and adding a battery to existing solar, or our page on solar and battery installation across the Northern Rivers.
Why Northern Rivers locals choose us
- Rebates built in: the federal Cheaper Home Batteries rebate and solar STCs, taken off at point of sale. We do the paperwork.
- Our own in-house team designs every system and does every install. 25 years in solar and large commercial electrical work.
- A face-to-face site visit before every install: compliant battery position, switchboard and RCBO check, no surprises on the day.
- Sigenergy (premium) to GoodWe (mid-tier), and more: we also install Sungrow, Solax and Tesla batteries.
Battery rebate FAQs
Is the rebate set when I sign or when the battery is installed?
When it is installed. The STC factor on your install date is the one that applies, not the date of your quote or contract.
How much smaller is the rebate after 1 January 2027?
The STC factor drops from 6.8 to 5.7 per usable kWh, then to 5.2 from 1 July 2027. The dollar amount depends on your battery size and the certificate price at the time. Your proposal shows the exact figure.
Can I get the rebate if I already have solar?
Yes. The rebate applies to batteries added to new or existing solar. Only one battery claim is allowed per property.
Does a bigger battery get a bigger rebate?
Up to a point. The full rate applies to the first 14 kWh, then it tapers between 14 and 28 kWh and again between 28 and 50 kWh. We size the battery to how you use power, not to chase the rebate.
Do I have to apply for the rebate myself?
No. We take it off your price at point of sale and handle all the paperwork.
Can you lock in today’s rebate for a later install?
No. Nobody can. The rebate is set by the install date, so we will be straight with you about realistic install dates.
Get your battery designed with the rebate built in
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