It's November, and the phone calls have started again. Same question as April, different date: "Is the battery rebate ending at Christmas?" It isn't. But it does get smaller on 1 January 2027, and if you're halfway through deciding on a battery, it's worth knowing by how much.
On 1 January 2027 the federal battery rebate (the Cheaper Home Batteries Program) drops from 6.8 to 5.7 STCs per usable kilowatt-hour. At a certificate price of about $37 after admin, that takes it from roughly $252 to roughly $211 per usable kWh, so the rebate on a 10 kWh battery falls from about $2,520 to about $2,110. The tiers don't change: the first 14 kWh earns the full rate, 14 to 28 kWh earns 60%, and 28 to 50 kWh earns 15%. The program keeps running to the end of 2030, stepping down every six months.
Rates as at 2 November 2026, from the Clean Energy Regulator's published schedule. Dollar figures move with the STC price, so treat them as approximate.
What changes on 1 January 2027?
One number changes. Everything else stays put.
| 1 May to 31 December 2026 | From 1 January 2027 | |
|---|---|---|
| STC factor per usable kWh | 6.8 | 5.7 |
| Approximate value per usable kWh | about $252 | about $211 |
| Tiers | First 14 kWh full rate, 14 to 28 kWh at 60%, 28 to 50 kWh at 15% | Unchanged |
| 10 kWh battery, approximate rebate | about $2,520 | about $2,110 |
The arithmetic: 6.8 × $37 = $251.60, which we round to $252 across the site, and 5.7 × $37 = $210.90, which we round to $211. Carrying the cents instead changes the totals below by a few dollars at most (10 × 5.7 × $37 is $2,109, for example). The STC factor is the fixed part, set by the regulator. The certificate price floats with the market, so the dollar value on your quote could land a little either side.
The rate drops by about $41 per kWh in the full-rate tier. That's a cut of about 16% (1.1 ÷ 6.8), a bit smaller than the May step from 8.4 to 6.8.
How much is the battery rebate in 2027, by battery size?
For anything up to 14 kWh, the sum is simple: usable kWh × the per-kWh rate. Above 14 kWh the tiers kick in, which is where people get the maths wrong.
| Usable capacity | Now, to 31 Dec 2026 (about $252/kWh) | From 1 Jan 2027 (about $211/kWh) | You lose by waiting |
|---|---|---|---|
| 5 kWh | about $1,260 | about $1,055 | about $205 |
| 10 kWh | about $2,520 | about $2,110 | about $410 |
| 13.5 kWh (e.g. Powerwall) | about $3,402 | about $2,849 | about $554 |
| 15 kWh | about $3,679 | about $3,081 | about $599 |
| 20 kWh | about $4,435 | about $3,714 | about $722 |
The working for 5, 10 and 13.5 kWh
All three sit inside the full-rate tier, so it's straight multiplication:
- 5 kWh: 5 × $252 = $1,260 now. 5 × $211 = $1,055 from January.
- 10 kWh: 10 × $252 = $2,520 now. 10 × $211 = $2,110 from January.
- 13.5 kWh: 13.5 × $252 = $3,402 now. 13.5 × $211 = $2,848.50 from January.
The tier arithmetic for 15 and 20 kWh
Here's the method. The first 14 kWh earns the full rate. Each kWh from 14 to 28 earns 60% of it.
15 kWh, now:
- First 14 kWh: 14 × $252 = $3,528
- The 15th kWh at 60%: 1 × $252 × 0.6 = $151.20
- Total: $3,679.20
15 kWh, from 1 January 2027:
- First 14 kWh: 14 × $211 = $2,954
- The 15th kWh at 60%: 1 × $211 × 0.6 = $126.60
- Total: $3,080.60
20 kWh, now:
- First 14 kWh: $3,528
- The next 6 kWh at 60%: 6 × $151.20 = $907.20
- Total: $4,435.20
20 kWh, from 1 January 2027:
- First 14 kWh: $2,954
- The next 6 kWh at 60%: 6 × $126.60 = $759.60
- Total: $3,713.60
A shortcut if you want to check any size between 14 and 28 kWh: the battery earns the full rate on 14 kWh plus 0.6 of every kWh above that. So 15 kWh counts as 14.6 "full-rate" kWh, and 20 kWh counts as 17.6. Multiply by the rate: 17.6 × $211 = $3,713.60. Same answer.
The rebate is worked out on usable capacity, not the number in the product name. A battery sold as "10 kWh" with 9.6 kWh usable earns the rebate on 9.6. Check the usable figure on your quote.
Why the 14 kWh tier matters more than the rate drop
The headline is the $41 per kWh drop. The tiers are what should shape the size you buy, and they're the same in 2027 as they are now.
From January, each kWh up to 14 earns about $211. Each kWh from 14 to 28 earns about $126.60. Each kWh from 28 to 50 earns about $31.65 (15% of $211). Going from 14 to 20 kWh adds six kilowatt-hours of battery but only about $760 of rebate.
That isn't a reason to avoid a bigger battery if you genuinely use the energy. It's a reason not to go bigger because of the rebate. Most Sunshine Coast homes use 8 to 16 kWh between about 4pm and 7am, which sits mostly inside the full-rate tier. Our guide on what size solar battery you need walks through working that out from your own bill.
When does the battery rebate drop again?
Every six months, on a published schedule, until the program ends. Here's the Clean Energy Regulator's table from now to the end:
| Period | STC factor per usable kWh | Approx. per kWh at today's ~$37 STC |
|---|---|---|
| May to December 2026 | 6.8 | about $252 |
| January to June 2027 | 5.7 | about $211 |
| July to December 2027 | 5.2 | about $192 |
| 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 |
We've only put dollar figures against 2027, because nobody knows what an STC will trade at in 2029 and we're not going to pretend otherwise. The factor tells the story on its own: by the second half of 2030 it's 2.1, under a third of today's 6.8.
Why it keeps falling: the regulator says the factor is adjusted in line with falling battery costs, so the discount stays at around 30% of the upfront cost of a battery. That's the policy intent. It isn't a promise that the installed price of your particular battery will fall by the same amount each six months, so don't bank on waiting for a "cheaper" battery to cancel out a smaller rebate.
Is the battery rebate ending at the end of 2026?
No. This is the most common misunderstanding we hear right now. The end of 2026 is just another step-down date, the same as 1 May was. The Cheaper Home Batteries Program runs to the end of 2030, and every battery installed between now and then still gets a rebate. It just gets a smaller one each six months.
There's no state top-up to replace it, either. Queensland's Battery Booster, which was worth up to $6,115, is closed to new applicants. Our QLD solar and battery rebates page keeps the current state and federal position in one place.
Does the rebate depend on when I sign or when it's installed?
When it's installed. The STC factor that applies is the one in force on the date the battery is installed. Not the quote date, not the date you paid a deposit, not the date you signed.
You can see this in the regulator's own solar battery STC calculator: the first thing it asks for is the installation date.
So a quote signed on 15 December for a battery that goes in on 8 January gets the 2027 rate. Anyone telling you a deposit "locks in" the 2026 rebate is wrong, or they're planning to install before 31 December. Ask which.
Should I install a battery before January?
Only if you were going to buy that battery anyway, and it can genuinely be installed properly before 31 December.
What has to happen before install day
A battery isn't a same-week job, and it shouldn't be. Between "yes" and install day there's:
- A site inspection. Switchboard, meter box, where the battery can legally go, cable runs, your existing inverter.
- A design. Battery size from your 4pm to 7am usage, inverter choice, which circuits get backup.
- A network application. Energex says you or your installer must submit an application before the battery is installed. Your installer normally handles it. In regional Queensland it goes to Ergon instead.
- Equipment supply, then the install and commissioning.
How long each step takes depends on the installer's bookings, stock and the network's processing at the time, so we won't quote you a number of days here. What we will say is that late December is short on working days for everyone, with Christmas and Boxing Day in the middle of it. If you're starting from scratch in mid-December, plan on a 2027 install and a 2027 rebate.
Don't trade a good design for a few hundred dollars
On a well-sized 10 kWh battery, the difference is about $410. That's real money, but compare it with what a rushed job can cost you over ten years:
- a battery that's the wrong size for your evening use
- a switchboard that should have been looked at properly and wasn't
- an inverter that doesn't suit the battery, or that was due for replacement anyway
- an installer you wouldn't have picked if they hadn't promised a date
A battery that's wrong for your house costs far more than $410 over its life. If it misses 31 December, it misses it. The battery makes the same sense on 2 January as it did on 30 December. For what each size actually costs installed once the rebate is off, see our solar battery cost breakdown.
When it is worth moving
If you've already had a proper site visit, you know what size you need, the design is done and the installer has a genuine slot before Christmas, then yes, go ahead. You're not rushing; you're just finishing a decision you'd already made. That's the only version of "beat the deadline" we'd recommend.
What stays the same in 2027
The eligibility rules aren't changing on 1 January. Per the Clean Energy Regulator:
- One battery rebate per property. You can't claim again for a second battery at the same address. That includes adding modules later to a battery that already claimed, so it pays to size it right the first time.
- Not means-tested. Income doesn't come into it.
- New equipment, not second-hand or previously installed.
- VPP-ready. The battery has to be technically capable of joining a Virtual Power Plant. You don't have to join one.
- On the Clean Energy Council's approved battery list, installed to AS/NZS 5139 by an accredited installer (accreditation now sits with Solar Accreditation Australia).
- At least 5 kWh, with the rebate counted on up to 50 kWh of usable capacity.
- Retrofits qualify. The battery can go in with new solar or alongside an existing system.
- It stays put. The regulator expects the battery to remain at the property until the end of 2030 or the end of its warranty, whichever is later.
It's still applied upfront by your installer as a discount on the invoice, and it still stacks with the panel STCs: STCs come off the panels, the battery rebate comes off the battery.
If you want to see how the last step played out, our post on the May 2026 battery rebate changes covers the drop from 8.4 to 6.8 and the introduction of the tiers.
What we're doing about it
Every battery quote we write shows the rebate as its own line, at the rate for the date the battery will actually be installed. If the install is booked before 31 December, it's at the 2026 rate. If it's in January, it's at the 2027 rate and the quote says so. No brochure numbers, no surprise on the invoice.
What we won't do is squeeze a battery in before Christmas by skipping the site visit or guessing the size. If the timing works, good. If it doesn't, you'll get a quote at the 2027 rate and an honest explanation of the difference.
Our battery installation on the Sunshine Coast starts with your interval data so the size comes from your evening use, not the rebate deadline. If you'd like that done before the end of the year, get a quote and send us a recent bill.
Frequently asked questions
When does the battery rebate drop?
The next drop is 1 January 2027, when the STC factor falls from 6.8 to 5.7 per usable kWh, or from about $252 to about $211 per kWh at a $37 STC price. After that it drops again on 1 July 2027 (to 5.2) and every six months to the end of 2030.
Is the battery rebate ending?
No. The Cheaper Home Batteries Program runs to the end of 2030. The end of 2026 is a step-down date, not an end date. Batteries installed in 2027 still get a rebate; it's just smaller.
How much is the battery rebate in 2027?
From 1 January to 30 June 2027, about $211 per usable kWh for the first 14 kWh, 60% of that from 14 to 28 kWh, and 15% from 28 to 50 kWh. That's about $1,055 on 5 kWh, $2,110 on 10 kWh, $3,081 on 15 kWh and $3,714 on 20 kWh, depending on the STC price at the time.
Does signing a quote before 31 December lock in the 2026 rate?
No. The rate is set by the date the battery is installed. A quote or deposit in December for a January install gets the January rate.
Should I install a battery before January?
Only if it's the right battery and it can be installed properly before 31 December. On a 10 kWh battery the difference is about $410, which isn't worth a rushed design, the wrong size or an installer you'd otherwise pass on.
Will the rebate drop again in 2027?
Yes. On 1 July 2027 the factor falls again, from 5.7 to 5.2 per usable kWh, which is about $192 per kWh at today's STC price.
