Australia battery rebates changed on the 1st of May 2026: What you need to know
Home batteries are at the centre of Australia’s shift towards cleaner, smarter energy. Since the introduction of the Federal Government’s Cheaper Home Batteries program in July 2025, more than 236,000 systems have already been installed, which provides homeowners with a generous upfront discount.
In late 2025, the Federal Government confirmed changes to the battery incentive scheme, with adjustments to Small-scale Technology Certificate (STCs) taking effect from 1 May 2026. Specifically, the number of STCs have reduced to ensure the program’s long-term sustainability. The good news? Battery rebates are still available; they’re simply reducing gradually over time.
If you haven’t secured an installation yet, it’s still a great time to act. STCs are set to drop again in January 2027, meaning households that install sooner can still access a higher upfront discount. In this article we explain what has changed, why it’s happening, and why installing a battery remains a strong long-term investment for Australian households.
What Are STCs and Why Do They Matter for Batteries?
Small‑scale Technology Certificates (STCs) are part of the Federal Government’s Renewable Energy Target. They help reduce the upfront cost of eligible renewable energy systems including solar power, solar hot water, heat pump water heaters, and batteries.
Put simply, STCs lower the upfront price you pay by providing a discount at the time of installation.
The number of STCs your battery system may be eligible for depends on:
- The size of the battery system
- The market value of each STC
- The deeming period (how many years of renewable energy generation the system is expected to deliver)
Because the value of STCs can be assigned at installation, households benefit immediately rather than waiting for savings over time, making the switch to energy storage more seamless.
In short: the upfront savings you receive from STCs, depends on when you install and what size battery you choose.
What changed on 1 May 2026?
The Australian Government announced an increased investment from its original $2.3 billion to approximately $7.2 billion with the goal of two million households installing a battery by 2030.
However, to ensure the program remains sustainable, several adjustments have come into effect:
1. The STC Factor has been adjusted
The STC Factor determines how many certificates your battery system is entitled to per kilowatt-hour (kWh) of useable capacity. From 1 May 2026:
- The STC Factor declines at a faster rate.
- It now reduces every six months between now and the end of 2030.
Your final incentive or discount will be based on the STC Factor in place on the day your battery is installed.
Why was this change made?
To ensure the discount keeps pace with falling battery prices, while maintaining long‑term program viability. It is now better suited to an adequately sized battery rather than oversized systems under the previous rate.
STC Factor changes over time: The table below shows how the STC Factor gradually reduces between now and 2030.
2. STC eligibility now varies by battery size
Not all batteries will be eligible for the full STC Factor. Here is a breakdown depending on battery size:
- 0-14kWh: 100% of the STC Factor
- >14-28kWh: 60% of the STC Factor
- >28-50kWh: 15% of the STC Factor
Why was this change made?
To ensure the discount better reflects real-world pricing and maintain an average discount of 30% on the upfront cost of a wide range of battery sizes.
To estimate the STC value you could be entitled to, check out Solahart’s Battery STC Value Calculator here.
What does this mean for you? And why installing a battery now still makes sense
While the upfront discount available for battery installations is now smaller than it was before May, incentives remain higher than they will be from January 2027 onwards, so it’s still a good time to install a battery.
It also helps to remember that a home battery is a long-term investment, offering you advantages that can outweigh the change in incentives.
1. Protect yourself from high electricity prices
Homeowners across Australia have faced steep rises in electricity prices in recent years. Installing a home battery reduces your reliance on the grid by storing excess solar energy during the day for use at night or during periods of low solar production.
2. Support the shift to electrification
Electrification refers to the shift away from technologies that use fossil-fuels in favour of those that run on electricity. As electrification continues to gain momentum in Australia, installing a battery is a smart move as you can run your appliances, including EV charging, using more solar energy.
ALSO READ: What does electrification mean and how are Australians saving more on their energy bills?
3. Increase your energy independence
By relying less on the grid, you gain greater control over your energy use, which can protect you against fluctuating energy prices. Also, installing a battery is a smart choice if you live in an area prone to blackouts. Many batteries offer a reliable backup option so you can run essential circuits during outages.
These benefits continue long after incentives change.
How Solahart can help
Installing a battery isn’t just about choosing a product, it’s about ensuring your system is right for your home, your energy habits, and future needs.
Solahart has been helping Australians embrace renewable energy for over 70 years, and our expert teams can support you every step of the way.
With a free in-home assessment, we can:
- Assess your home’s energy usage and future needs
- Recommend the right battery system for your lifestyle
- Explain how recent STC changes affect your installation
- Provide a tailored, transparent quote
- Install your system to the highest safety and quality standards
Solahart offers a range of advanced battery systems to help you make the most of today’s incentives while planning confidently for the future.
Ready to get started? Get in touch with Solahart today to explore your battery options.
Eligibility and rebate values depend on system size, installation date, and individual circumstances.
