Update, October 2026: the step described below went ahead on 1 May 2026 as scheduled. The federal battery rebate is now worth roughly $252 per usable kWh (6.8 STCs per kWh), about $2,520 on a 10 kWh battery, and the tiers below are in force. The Clean Energy Regulator's published schedule shows the 6.8 factor applying until the end of December 2026, with the next step on 1 January 2027. The rest of this post is left as written on 27 April so you can see what changed and why.
The most common call we're getting right now is a version of the same question: "Is the battery rebate ending?" It isn't. But it is getting smaller on Friday, and the way it's calculated is changing too.
On 1 May 2026 the federal battery rebate (the Cheaper Home Batteries Program) drops from 8.4 to 6.8 STCs per usable kilowatt-hour. At a certificate price of about $37 after admin costs, that takes it from roughly $311 to roughly $252 per usable kWh, so a 10 kWh battery's rebate falls from about $3,110 to about $2,520. From the same date the rebate becomes tiered, so capacity above 14 kWh earns less per kWh. The program itself continues to the end of 2030, stepping down every six months along the way.
Here's what that means for your battery, and whether it's worth rushing.
What exactly changes on 1 May 2026?
Two things change, and one thing doesn't.
| Up to 30 April 2026 | From 1 May 2026 | |
|---|---|---|
| STC factor per usable kWh | 8.4 | 6.8 |
| Approximate value per usable kWh | about $311 | about $252 |
| How capacity is counted | Flat rate across the battery | Tiered: first 14 kWh full rate, 14 to 28 kWh at 60%, 28 to 50 kWh at 15% |
| 10 kWh battery, approximate rebate | about $3,110 | about $2,520 |
The arithmetic behind those dollar figures: 8.4 × $37 = $310.80, and 6.8 × $37 = $251.60. The certificate price moves with the market, so treat every dollar figure here as approximate. The STC factor is the fixed part.
What doesn't change: the rebate is still applied upfront by your installer as a discount on the invoice. You don't apply for it, you don't wait for a cheque, and nobody means-tests you.
For context, when the program opened on 1 July 2025 it was worth about $372 per usable kWh. This is the second step down, not the first.
How much is the solar battery rebate by battery size?
This is where the tiering matters. For anything up to 14 kWh, the only change is the lower rate. Above 14 kWh, the extra capacity earns less.
| Usable capacity | Before 1 May (flat, about $311/kWh) | From 1 May (tiered, about $252/kWh) | Difference |
|---|---|---|---|
| 5 kWh | about $1,555 | about $1,260 | about $295 |
| 10 kWh | about $3,110 | about $2,520 | about $590 |
| 13.5 kWh (e.g. Powerwall) | about $4,199 | about $3,402 | about $797 |
| 15 kWh | about $4,665 | about $3,679 | about $986 |
| 20 kWh | about $6,220 | about $4,435 | about $1,785 |
How the tiered figures are worked out, so you can check them:
- 5 kWh: 5 × $252 = $1,260
- 10 kWh: 10 × $252 = $2,520
- 13.5 kWh: 13.5 × $252 = $3,402
- 15 kWh: (14 × $252) + (1 × $252 × 60%) = $3,528 + $151.20 = $3,679.20
- 20 kWh: (14 × $252) + (6 × $252 × 60%) = $3,528 + $907.20 = $4,435.20
The rebate is calculated on usable capacity, not the number printed in the product name. A "10 kWh" battery with 9.6 kWh usable earns the rebate on 9.6 kWh. Ask for the usable figure on your quote.
Why the tiers matter more than the rate drop
The rate drop is the headline, but the tiers are what change buying decisions.
Under the flat rate, a 20 kWh battery earned exactly twice the rebate of a 10 kWh battery. From 1 May, it earns about 1.76 times as much ($4,435 ÷ $2,520). Every kilowatt-hour past 14 is now subsidised at 60% of the full rate, and past 28 at only 15%.
That's not a bad thing. Oversizing is already the most common mistake we see on other companies' quotes, and part of the reason was that a flat rebate made big batteries look cheap per kWh. A battery that never fully cycles earns nothing on the unused capacity, rebate or no rebate. Most Sunshine Coast homes need 8 to 16 kWh based on their 4pm to 7am usage, which sits mostly inside the full-rate tier anyway.
If someone is pushing you towards 20 kWh-plus "while the rebate's good", ask what your evening load actually is. Unless you're charging an EV overnight or have a large array to fill it, the answer is usually smaller.
Are solar rebates reducing in 2026?
Yes, both of them, by design.
- Batteries: the Cheaper Home Batteries Program steps down every six months from here to the end of 2030. The 1 May step is one of a planned series, not a one-off cut.
- Panels: the STC discount on rooftop solar falls a little each year, because the scheme winds up at the end of 2030 and the number of certificates a system earns is tied to the years remaining. The same system costs a bit more each year, all else equal.
Neither is a cliff. Both only move one way.
When does the solar rebate end?
Both federal schemes, the panel STCs and the battery program, are legislated to wind up at the end of 2030. Between now and then the battery rebate keeps stepping down every six months, so a battery installed in 2028 will attract noticeably less than one installed this year.
Queensland's own Battery Booster program, worth up to $6,115, is already closed to new applicants. Don't budget for it. There's no Queensland-wide state rebate on panels either. Our solar battery rebate QLD guide keeps the current state and federal position in one place.
Should you rush to install before 1 May?
Honestly? Only if you were going to buy the right battery anyway and the install can genuinely happen in time.
The rate that counts is the one current on the day your system is installed, not the day you sign. A battery also needs a network application before it goes in. If the install can't be done properly by 30 April, signing now doesn't lock in the old rate.
And the difference on a well-sized battery is real but not life-changing: about $590 on 10 kWh. That's worth having, but it's not worth:
- buying a battery that's the wrong size for your evening load
- skipping a proper look at your switchboard and inverter
- going with an installer you wouldn't otherwise choose because they promised a date
A rushed install with the wrong battery costs you far more than $590 over ten years. If it misses the date, it misses the date. The battery still makes the same sense on 2 May that it did on 30 April.
What stays the same after 1 May
The eligibility rules aren't changing:
- Battery between 5 and 50 kWh of usable capacity
- New equipment, not second-hand or refurbished
- VPP-ready, meaning it can be managed by a Virtual Power Plant operator. You don't have to join one
- Installed by an accredited installer, on a product on the approved list
- One battery rebate per property
- Not means-tested
- Retrofits to existing solar qualify
It still stacks with the panel STCs on the same invoice: STCs come off the panels, the battery rebate comes off the battery.
For the full background on eligibility and how the program works, see our guide to the federal government battery rebate. For what a battery actually costs once the rebate's off, see our solar battery cost breakdown.
What we're doing about it
Every battery quote we write itemises the rebate at the rate that will apply on the install date, not a number from a brochure. If a job is booked for before 1 May, it's at the old rate. If it's after, it's at the new rate and the quote says so. No guessing, no surprises on the invoice.
If you want a straight answer on what size battery your evening load needs, our solar battery installation process starts with your interval data, not a sales script.
Frequently asked questions
Are solar rebates reducing in 2026?
Yes. The federal battery rebate dropped from about $311 to about $252 per usable kWh on 1 May 2026 (8.4 to 6.8 STCs per kWh) and keeps stepping down every six months to the end of 2030. The STC discount on panels also falls a little each year as the scheme heads towards its 2030 end date.
How much is the solar battery rebate?
Since 1 May 2026, roughly $252 per usable kWh for the first 14 kWh, 60% of that for capacity between 14 and 28 kWh, and 15% between 28 and 50 kWh. That works out to about $2,520 on a 10 kWh battery and about $3,679 on a 15 kWh battery. The exact figure moves with the certificate price, so it's confirmed on your quote.
How long will the solar battery rebate last?
The Cheaper Home Batteries Program runs to the end of 2030. It isn't capped by participant numbers, but its value steps down every six months over that period, so waiting means a smaller rebate.
When does the solar rebate end?
Both the battery rebate and the STC discount on panels are legislated to wind up at the end of 2030. Neither ends suddenly before then; they shrink on a schedule.
Can I claim the battery rebate twice?
No. It's one battery rebate per property. Landlords can claim on each property they own. Queensland landlords may also be eligible for the separate solar for renters rebate on panels.
Does the 1 May change affect batteries already installed?
No. The rebate is applied at installation, at the rate current on the install date. If your battery went in before 1 May, nothing changes for you.
