Check your battery rebate eligibility
Current battery rates end May 1, 2026 · 63 days remaining
If you have been looking at battery quotes recently, you have probably noticed the “rebate” line item and wondered how long it will last. Fair question. The Clean Energy Regulator announced in February 2026 that the battery rebate structure is changing from 1 May.
Predictably, the solar industry has already started running the “act now before the rebate drops!” playbook. And look, the rebate is dropping. But the full picture is more nuanced than the panic headlines suggest. Whether the change actually matters to you depends almost entirely on the size of battery you are considering.
So let me walk through exactly what is changing, run the numbers for every common battery size, and give you a straight answer on whether you need to rush.
Two things are changing on 1 May. Only one gets the headlines.
The battery rebate changes from May 2026 have two separate parts, and most articles lump them together. They shouldn't, because they affect different people differently.
Change 1: The STC factor drops
The STC factor falls from 8.4 to 6.8 on 1 May 2026. This affects every battery installation regardless of size. It is the scheduled decline that was always coming, now happening every six months instead of annually.
Change 2: Tiered capacity structure
The STC factor is now applied at different rates depending on battery size. The first 14 kWh gets 100%. Capacity from 14 to 28 kWh gets 60%. Capacity from 28 to 50 kWh gets just 15%. This only matters if your battery is larger than 14 kWh.
Here is the thing most people miss: if you are buying a standard 10 kWh or 13.5 kWh battery (which covers roughly 80% of residential installs in Australia), the tiering does not touch you at all. Your entire battery sits within the 100% tier. The only hit you take is the factor drop from 8.4 to 6.8, which was always on the schedule.
The tiering really only bites for the bigger systems: 20 kWh stacks, whole-home setups, and anything above 28 kWh where the 15% tier kicks in. If that is you, keep reading closely. If you are looking at a standard 10-13.5 kWh battery, the numbers are simpler than you think.
Check Your Battery Rebate
Enter your postcode to check rebate eligibility in your area.
Current battery rates end May 1, 2026 · 63 days remaining
Over 3.6 million homes already claiming rebates
How the tiers work (with a simple analogy)
Think of the tiering like income tax brackets. You don't pay the higher rate on your entire income, only on the portion above the threshold. Same deal here. If you install a 20 kWh battery, the first 14 kWh still gets the full STC factor. Only the 6 kWh above the threshold gets the reduced 60% rate.
| Capacity range | STC factor applied | Who this covers |
|---|---|---|
| 0 to 14 kWh | 100% | Most standard batteries (Tesla Powerwall 3, BYD 10.2, Sungrow 9.6) |
| 14 to 28 kWh | 60% | Larger stacked systems, whole-home backup setups |
| 28 to 50 kWh | 15% | Very large residential or small commercial systems |
The government's stated goal is to keep the effective discount at roughly 30% across all battery sizes. As battery prices have come down, the per-kWh rebate for large systems was becoming disproportionately generous. The tiering corrects for that. You can argue about whether the thresholds are right, but the logic is straightforward.
These changes come via amendments to the Renewable Energy (Electricity) Regulations 2001, published as F2026L00093. Only the first 50 kWh of usable capacity is eligible for STCs. Anything above that gets nothing.
What it means in dollars for every common battery size
Enough theory. Here are the actual numbers, calculated using the CER's STC calculator methodology and an STC spot price of $38 per certificate.
| Battery size | Before May (factor 8.4) | After May (factor 6.8 + tiers) | Difference |
|---|---|---|---|
| 10 kWh | 84 STCs = ~$3,190 | 68 STCs = ~$2,580 | -$610 |
| 13.5 kWh | 113 STCs = ~$4,310 | 92 STCs = ~$3,490 | -$820 |
| 20 kWh | 168 STCs = ~$6,380 | 120 STCs = ~$4,550 | -$1,830 |
| 30 kWh | 252 STCs = ~$9,580 | 154 STCs = ~$5,870 | -$3,710 |
How to read this table: The 10 kWh and 13.5 kWh rows are affected only by the STC factor drop (8.4 to 6.8). The tiering has zero impact because both sit under 14 kWh. The 20 kWh and 30 kWh rows are hit by both the factor drop and the tiered rates, which is why the gap is so much larger.
Let me put those numbers in context. For a standard 10 kWh battery, the rebate drops about $610. That is roughly the equivalent of two quarterly electricity bills. Not nothing, but not a reason to panic-buy a system you haven't properly researched either.
For a 20 kWh system, the drop is $1,830. That is more significant. And for a 30 kWh setup, you are looking at nearly $3,710 less in rebate value. If you are planning a large battery install, the maths on timing is pretty clear.
It keeps declining every six months now
The other change that gets less attention is the decline schedule. Previously, the STC factor dropped once per year. From May 2026, it drops every six months. Here is where the factor is heading, per the CER's published schedule:
| Period | STC factor | Rebate per kWh (first 14 kWh)* |
|---|---|---|
| Jan to Apr 2026Now | 8.4 | ~$319/kWh |
| May to Dec 2026 | 6.8 | ~$258/kWh |
| Jan to Jun 2027 | 5.7 | ~$217/kWh |
| Jul to Dec 2027 | 5.2 | ~$198/kWh |
| Jan to Jun 2028 | 4.6 | ~$175/kWh |
| 2029 to 2030 | 3.6 to 2.1 | ~$137 to ~$80/kWh |
*Based on STC spot price of ~$38. Actual prices fluctuate with market demand.
The trend is clear. Every six months, the rebate gets smaller. By 2028, it will be roughly half of what it is today. By 2030, it will be a fraction. The program was expanded to $7.2 billion in December 2025 (up from $2.3B), so the funding is not going to run out. But the per-battery discount is designed to shrink as battery prices come down.
More than 160,000 households have already installed batteries through the program in its first six months. The government clearly wants this to keep going. They just want to pay less per battery as the technology gets cheaper.
See Your Battery Rebate Amount
Enter your postcode to see your estimated rebate amount.
Current battery rates end May 1, 2026 · 63 days remaining
Over 3.6 million homes already claiming rebates
So should you rush to install before May?
Depends on your situation. Let me break it down by battery size, because the answer is genuinely different.
10 to 13.5 kWh (most households)
You save $610 to $820 by installing before May. That is real money, but it is not a reason to rush into a system you have not researched properly. Getting three good quotes and choosing the right installer matters more than saving $600 on the rebate. If you are already in the process of getting quotes, try to lock in before May. If you are just starting to look, take your time and do it right.
20 kWh+ (large systems, whole-home backup)
The case for acting before May is much stronger here. A 20 kWh system loses $1,830 in rebate value. A 30 kWh system loses $3,710. The tiered structure specifically targets these larger installs, and the gap will only widen with each six-monthly factor drop. If you have been planning a large battery install, the timing matters.
Still on the fence about whether to get a battery at all?
Don't let the rebate deadline push you into a decision you are not ready for. A battery is a 10 to 15 year investment. Whether you save $600 more or less on the upfront cost is minor compared to whether the battery is the right size for your usage, paired with a good inverter, and installed correctly. Read our guide on whether a solar battery is worth it before making any moves.
One more thing: new photo compliance from March 2026
Slightly separate from the tiering changes, the CER has also introduced new photo compliance requirements from 1 March 2026. Installers must now submit geotagged, timestamped photographs of critical labelling and signage for every battery installation.
This does not affect you directly as a homeowner. But it is worth knowing because if your installer does not follow the new photo requirements, your STC claim could be delayed or rejected. Make sure whoever installs your battery is SAA-accredited and aware of the March 2026 compliance changes. The battery must also be CEC-approved and VPP-capable for on-grid installations.
The honest take
Going back to the tax bracket analogy: the tiered STC structure is designed the same way. It is not a cliff edge. The first 14 kWh still gets the full rate. Most households installing a standard battery will barely notice the tiering at all.
The factor decline from 8.4 to 6.8 is the part that affects everyone, and that was always coming. It will keep declining every six months from here. If you are going to install a battery in 2026, sooner is better than later purely on rebate maths. But not at the expense of making a rushed decision.
If you are looking at a big system, 20 kWh or above, and you have already done your homework on battery comparisons and sizing, then yes, getting it done before May saves you real money. For everyone else, take a breath. The rebate is still substantial in the second half of 2026. It is just a bit less substantial than it is right now.
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The next step
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Written by
JaySolar Evangelist
Passionate about making solar simple and accessible for every Australian household. Jay breaks down complex energy topics into practical advice so homeowners can make confident decisions about solar, batteries, and energy independence.
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