Guide · 11 October 2026
The battery rebate drops on 1 January 2027. Here's what it means for you.
On 1 January 2027 the federal Cheaper Home Batteries discount falls from 6.8 to 5.7 certificates per usable kWh. On a typical 10 to 16 kWh home battery that's roughly $440 to $680 less off the price. The rebate doesn't end; it keeps stepping down every six months until 2030.
By Micheal Foley, owner of MF Energy and licensed electrician · 11 October 2026
days until the federal battery discount steps down (1 January 2027). Installed before then, you’re eligible for more.
How the discount works →What the 1 January change is worth
| Usable battery size | Installed by 31 Dec 2026 | Installed from 1 Jan 2027 | Difference |
|---|---|---|---|
| 10 kWh | ≈ $2,720 | ≈ $2,280 | −$440 |
| 13.5 kWh | ≈ $3,640 | ≈ $3,040 | −$600 |
| 16 kWh | ≈ $4,120 | ≈ $3,440 | −$680 |
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Discount figures assume $40 per certificate (STC) and are approximate; the exact amount depends on your install date, usable battery capacity and certificate prices on the day.
What exactly changes on 1 January?
Only the rate. The discount is paid in small-scale technology certificates (STCs), and the number you get per kWh of usable battery capacity falls from 6.8 to 5.7, a cut of about 16%. The size bands stay the same: full rate on the first 14 kWh, 60% of the rate from 14 to 28 kWh, 15% from 28 to 50 kWh, and nothing above 50 kWh. The eligibility rules don't change either.
The install date counts, not the day you sign
The rate is set by the date the installation is finished and the electrical compliance certificate is issued. A battery you sign for in November but that's installed on 4 January gets the January rate. If you want the 2026 rate, the install itself has to happen by 31 December.
Be wary of anyone who promises a December install without checking stock, your switchboard and the network paperwork first. Ask what happens to your price if the install slips into January, and get the answer in writing.
Should I rush to install before January?
Only if you were going to get a battery soon anyway. Bringing a decision forward by a couple of months to keep a few hundred dollars makes sense. Buying a battery you don't need, or a bigger one than your bills justify, to beat a deadline doesn't.
Waiting also has a cost. Every six months the discount gets smaller, and it's impossible to know whether battery prices will fall fast enough to make up the difference. What you can work out is what a battery saves you each year on your own bills. That number decides it, not the deadline.
What December looks like for installers
Expect installers to be busy in the weeks before 1 January. Installs take a site check, sometimes switchboard work and a connection application to your network. If you're thinking about the 2026 rate, get your quote in October or November rather than mid-December.
How to check you're getting the full discount
- ✓The discount is shown as its own line on the quote, not buried in the total
- ✓The quote states the battery's usable capacity in kWh, which is what the discount is calculated on
- ✓The quote says which rate it assumes (2026 or 2027) and what happens if the install date moves
- ✓The battery and inverter are on the Clean Energy Council's approved list
- ✓Nobody calls it a “free battery” or says the rebate “ends” on 31 December
The full step-down schedule
| Installed | Certificates per kWh | ≈ Discount per kWh (first 14 kWh) |
|---|---|---|
| May to Dec 2026 (now) | 6.8 | $272 |
| Jan to Jun 2027 | 5.7 | $228 |
| Jul to Dec 2027 | 5.2 | $208 |
| Jan to Jun 2028 | 4.6 | $184 |
| Jul to Dec 2028 | 4.1 | $164 |
| Jan to Jun 2029 | 3.6 | $144 |
| Jul to Dec 2029 | 3.1 | $124 |
| Jan to Jun 2030 | 2.6 | $104 |
| Jul to Dec 2030 | 2.1 | $84 |
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Published by DCCEEW and the Clean Energy Regulator. The government reviews the program at least once a year, so these settings can change.
Does the battery rebate end on 31 December 2026?
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No. It steps down on 1 January 2027, from about $272 to about $228 per usable kWh on the first 14 kWh, then every six months after that until 2030.
I signed in December but the install is in January. Which rate do I get?
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The January rate. The install date counts, not the contract date.
How much will I lose if I wait until 2027?
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On a 10 kWh battery about $440, on a 13.5 kWh battery about $600, and on a 16 kWh battery about $680, at $40 per certificate.
Will battery prices drop when the rebate drops?
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Nobody can promise that, so don't count on it. Plan around what a battery saves you on your own bills.
Does the NSW virtual power plant incentive change on 1 January too?
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No change has been announced for it. It's separate from the federal discount, it stacks with it, and the amount depends on the VPP provider you join.
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