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Solar Incentives Are Reducing From 1 January 2027

With limited installation dates remaining before solar and battery rebates reduce on 1 January 2027, now is the time to act.
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If you're considering installing solar panels or a battery for your home, there's an important deadline approaching.

From 1 January 2027, Australian Government incentives for eligible solar and battery systems are scheduled to reduce, meaning homeowners who install after this date may receive a lower rebate than those who install before the end of 2026.

As a result, homeowners installing after this date may receive less financial support through government incentives than those who install before the end of 2026.

Why Are Solar Rebates Reducing?

Australia's federal solar incentive is delivered through the Small-scale Renewable Energy Scheme (SRES), which provides eligible households with Small-scale Technology Certificates (STCs). These certificates are typically applied as an upfront discount on the purchase price of a solar system.

The scheme was designed to gradually reduce each year before ending in 2030. From 1 January 2027, the STC deeming period drops from five years to four years, reducing the number of certificates available for eligible new solar installations. 

The Cheaper Home Batteries Program Is Also Reducing

Homeowners considering battery storage should also be aware that incentives available through the Cheaper Home Batteries Program are scheduled to decrease from 1 January 2027. 

Under the program, eligible battery systems receive support through the STC framework. The battery incentive factor reduces on a scheduled basis, meaning systems installed after 1 January 2027 are expected to attract a lower rebate than those installed before the end of 2026.

For homeowners looking to combine solar and battery storage, delaying installation could result in:

  • A lower solar rebate
  • A lower battery rebate
  • A higher upfront investment
  • Reduced overall incentive value

As government incentives continue to step down toward 2030, installing sooner may maximise the value available today.

Beat the 2027 Rebate Reduction

The reduction in both solar and battery incentives is already scheduled, making now an ideal time to explore your options.

If you're considering solar, battery storage, or both, don't wait until rebates reduce. With limited installation dates available in 2026, now is the time to act. 

It's important to remember that rebates aren't disappearing overnight. Eligible homeowners are still expected to be able to access government incentives after 1 January 2027, but the value of those incentives is scheduled to reduce.

Get a free quote from Solahart today and find out how much you could save before solar and battery rebates decrease on 1 January 2027.

For more information on the incentives: 

Small-scale Renewable Energy Scheme (SRES)

Small-scale Technology Certificates (STCs)

 

  • Are solar rebates reducing in 2027?

    Yes. From 1 January 2027, the federal solar rebate available through Australia's Small-scale Renewable Energy Scheme will reduce as the scheme continues its planned phase-down towards 2030. Eligible systems installed after this date will generally receive fewer STCs than the same system installed before 31 December 2026. 

  • Why is the solar rebate reducing?

    The federal solar rebate is based on Small-scale Technology Certificates (STCs). The number of STCs available reduces each year under the design of the scheme, which gradually phases out until its scheduled end in 2030.

  • Are battery rebates reducing too?

    Yes. Incentives available through the Cheaper Home Batteries Program are also scheduled to reduce from 1 January 2027, meaning eligible battery systems installed after this date may receive a lower rebate.

  • Will there still be solar rebates after 1 January 2027?

    Yes. Eligible solar and battery systems may still qualify for government incentives after 1 January 2027, but the available rebate is expected to be lower than in 2026.

  • Should I install solar and a battery at the same time?

    Installing solar and battery storage together can help maximise self-consumption of your solar energy and may enable you to access available incentives before scheduled reductions occur. The right solution will depend on your household's energy needs and budget. Solahart can guide you through this process.

  • What happens if installation dates are fully booked?

    As demand increases ahead of the rebate reduction, installation availability may become limited. Securing a quote and booking your installation early can help improve your chances of accessing higher 2026 rebate levels.

  • Why choose Solahart?

    For over 70 years, Solahart has helped Australians reduce energy costs with solar power, battery storage and hot water solutions. Our local experts can help you understand available rebates and recommend a system tailored to your home and energy goals.