Solar battery rebate changes May 2026 are now locked in, and they directly affect how much battery rebate you can receive based on when your system is installed and how large your battery system is.
If you are considering a solar battery, the decisions you make now can significantly change your upfront rebate outcome.
From 1 May 2026, the Australian Government will adjust how battery rebates are calculated under the Cheaper Home Batteries Program. These changes apply nationwide and affect all eligible solar battery installations completed from this date onward.
Installs Now (Jan–30 April 2026) vs From 1 May 2026
To help you compare apples with apples, here are the assumptions used:
Rebate delivered via STCs (up-front discount)
STC price = $40 per STC (Clearing House fixed price, ex GST)
Calculation based on usable battery capacity
Only the first 50kWh is eligible
Two key things:
STC factor drops
From: 8.4 (Jan–Apr 2026)
To: 6.8 (May–Dec 2026)
A new rebate taper by battery size applies, meaning larger batteries receive less rebate per additional unit of capacity
| Battery Size | % of STC Factor | Effective Rebate per kWh |
|---|---|---|
| 0–14 kWh | 100% | $272 per kWh |
| 14–28 kWh | 60% | $163.20 per kWh |
| 28–50 kWh | 15% | $40.80 per kWh |
Smaller batteries retain strong rebate support.
Mid-sized batteries receive moderate support.
Larger batteries see a significant drop in rebate per kWh.
The installation date, not the quote date, determines your rebate level.
If your battery is installed after 1 May 2026, it may qualify for fewer STCs than the same system installed earlier. Each step-down reduces the rebate value applied at installation.
This makes installation timing one of the most important factors when planning a battery system.
To access the solar battery rebate in Australia, battery systems must meet eligibility rules set under the Small-scale Renewable Energy Scheme (SRES). These requirements determine whether STCs can be created and directly affect rebate value.
Eligible battery systems may include:
Additional battery capacity can also be eligible in certain circumstances. This applies where:
To remain eligible, battery systems must be installed for permanent use at the property. Retailers and installers are required to confirm that the battery is intended to remain installed on-site and is not designed to be moved, resold, or relocated after installation.
Understanding these eligibility conditions early helps avoid rebate shortfalls and ensures your srtystem qualifies under the correct solar rebate program.
Year | Period | Existing STC Factor | Proposed STC Factor |
2026 | January – April | 8.4 | 8.4 |
2026 | May – December | 8.4 | 6.8 |
2027 | January – June | 7.4 | 5.7 |
2027 | July – December | 7.4 | 5.2 |
2028 | January – June | 6.5 | 4.6 |
2028 | July – December | 6.5 | 4.1 |
2029 | January – June | 5.6 | 3.6 |
2029 | July – December | 5.6 | 3.1 |
2030 | January – June | 4.7 | 2.6 |
2030 | July – December | 4.7 | 2.1 |
The discount you are entitled to is determined by the STC Factor on the date the battery is installed.
These changes are especially relevant if you are:
Navigating the solar battery rebate changes May 2026 requires clear advice on timing, sizing, eligibility, and how the Australian solar rebate program applies to battery storage.
Working with experienced Australian solar and energy specialists helps ensure your battery system:
Bright Spark Group provides tailored solar battery storage solutions and integrated residential solar and energy services designed around the new rebate rules.
If you want clarity on how the solar battery rebate changes May 2026 affect your property, the next step is a tailored assessment.
You can book an energy consultation to review your options, confirm eligibility, and plan the right battery system with confidence.
Yes. Battery rebates under the Australian solar battery rebate program continue after May 2026, and the solar battery rebate in Australia offers remains available nationwide, although rebate values reduce over time as STC rebate factors step down.
The rebate is locked in on the installation date, not the order date. Our professional team confirms installation timing upfront to help avoid unexpected rebate reductions.
Yes. Larger batteries remain eligible, but rebate support tapers at higher capacities. Our team helps size your battery correctly to balance storage needs and rebate value.
No. These changes apply to battery rebates only. Solar panel rebates follow a separate schedule, and our team can explain how both apply to your system.
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