Solar and Battery Rebates Drop on 1 January 2027. Here's How to Act Before They Do

Short answer

Australia’s federal solar and battery rebates both reduce on 1 January 2027. The solar deeming period falls from 5 years to 4 for systems installed in 2027, which cuts the solar rebate by roughly 20%. The battery rebate falls from 6.8 to 5.7 STCs per kWh on the same date. To get the current rate, your system generally needs to be installed and commissioned by 31 December 2026, so quoting and booking need to start now.

Key facts at a glance

Now (to 31 Dec 2026) From 1 Jan 2027
Solar deeming period 5 years 4 years
Battery STC factor (per kWh) 6.8 5.7
Next battery step-down 1 Jan 2027 1 Jul 2027 (5.2), then every 6 months
Scheme end date 31 Dec 2030 31 Dec 2030
Source: Clean Energy Regulator deeming period schedule.

What are STCs, and why does the rebate shrink every year?

Small-scale Technology Certificates (STCs) are the federal incentive behind the upfront discount on rooftop solar and home batteries. For solar, the formula is system size (kW) × zone rating × deeming period (years). The scheme credits a system upfront for the energy it’s expected to generate until 31 December 2030, so every year closer to 2030 means fewer certificates for the same system.

Batteries work on the same principle but step down more often, on 1 January and 1 July each year, until the program ends in 2030.

How much will I lose by waiting until 2027?

Here are two worked examples. They are estimates based on a certificate price of about $37 to $40, which moves daily.

Solar (6.6 kW system, Zone 3):

  • 2026 install: about 45 STCs, or roughly $1,700
  • 2027 install: about 36 STCs, or roughly $1,370
  • Difference: about $340

 

Battery (10 kWh):

  • Now: about $2,520 off at 6.8 STCs per kWh
  • From 1 January 2027: about $2,100 off at 5.7 STCs per kWh
  • Difference: about $400

Tiering also applies to batteries. Since 1 May 2026, the full rate applies to the first 14 kWh, 60% to the next 14 kWh, and 15% beyond that, so larger batteries earn less per kWh at the margin.

Your own numbers will depend on your postcode zone, system size and the STC price on the day. A written quote will give you the exact figure.

Which date counts: signing, installing or switching on?

The date you sign is not the date that counts. The rebate is tied to installation. For batteries, one industry source says the “installed” date is when the certificate of electrical compliance is issued. Treat this as a guide, not a guarantee, and ask your installer to confirm in writing which date they will use to calculate your rebate.

In practice, a project can slip past the cutoff through approvals, network applications, stock delays or bad weather. Finishing at the end of December leaves no buffer.

What should I do between now and the end of the year?

  1. Gather your last 12 months of electricity bills. They show your usage and when you use it, which drives system sizing.
  2. Request quotes from two or three accredited installers. Compare equipment, warranties and inclusions, not just price.
  3. Ask each installer for a confirmed install date in writing, and ask how they handle delays that push past 31 December.
  4. Check state and local incentives that stack on the federal rebate. These vary by state and change often.
  5. Decide early. Installers fill up in the final weeks of the year.

Is it worth rushing for a rebate?

A rebate is a reason to act, not a reason to buy something unsuitable. The sensible approach is to move quickly on research and decision-making, not to skip checks. A well-designed system installed in 2026 will outperform a “perfect” system installed in 2027 at a lower rebate, because the rebate cut is certain and the possible gains from waiting are not.

Frequently asked questions

Timing and deadlines

When exactly do the solar and battery rebates drop? 

Both step down on 1 January 2027. The battery rebate then drops again on 1 July 2027 and every six months until 2030. The solar rebate steps down once a year, each 1 January.

Will the rebate disappear completely in 2027?

No. The scheme continues until 31 December 2030, but the value falls at each step.

What if my installation is delayed past 31 December?

You would generally receive the lower 2027 rebate. Ask your installer before you sign how they handle delays, and whether they will put the install date in writing.

Does signing a contract before 31 December lock in the current rate?

Not necessarily. The rebate is generally based on the installation date, not the signing date. Confirm with your installer which date they use.

How long does installation usually take from quote to switch-on? 

It varies with approvals, stock and demand. Demand rises sharply in the last weeks of the year, so allow extra time.

 

Rebate basics

What is an STC? 

A Small-scale Technology Certificate. Each one represents a quantity of renewable energy, and your installer trades them to give you an upfront discount.

Can I get the solar and battery rebates together? 

Yes. They are calculated separately, so a combined solar and battery install can earn both.

Do I need existing solar to get the battery rebate? 

No. It applies to homes with new or existing solar panels, and also to small businesses and community facilities.

Is the rebate means-tested? 

No. Eligibility does not depend on your income.

How do I receive the discount? 

Usually as an upfront reduction on your quote. Your installer creates and trades the certificates on your behalf.

Why does a bigger battery earn less per kWh?

Since 1 May 2026, the rebate is tiered. The first 14 kWh earns the full rate, the next 14 kWh earns 60%, and anything beyond that earns 15%. This means adding capacity has diminishing rebate value.

Does the STC price change my rebate? 

Yes. The number of certificates is set by the formula, but their dollar value moves with the market, typically somewhere around $37 to $40 each in 2026. Your installer can show you the price used in your quote.

 

Choosing a system

How do I know what size solar system or battery I need?

Start with your last 12 months of bills, which show how much power you use and when. A good installer will size the system to your usage, roof and budget, not just to maximise the rebate.

Is a battery worth it if I already have solar?

It depends on how much solar power you export versus how much you buy back in the evening, and on your tariff. Your bills and a written savings estimate will show whether the numbers stack up.

What is a VPP, and do I have to join one? 

A virtual power plant (VPP) lets a retailer or aggregator draw on many home batteries to support the grid, usually in return for credits or payments. Some batteries are VPP-capable, but joining is optional.

How can I check my installer is accredited? 

Ask for their accreditation details and check them against the relevant industry and regulator listings. Also read independent reviews on sites such as ProductReview and SolarQuotes.

 

Cost and risk

Is it a good idea to rush a decision to beat the deadline? 

Move quickly on research, but don’t skip the checks. Compare at least two or three quotes, confirm warranties and inclusions, and get the install date in writing.

What if prices fall or better equipment launches next year?

That’s possible, but the rebate cut is certain and scheduled. Weigh a small, uncertain gain against a known loss of a few hundred dollars or more.

What happens to the rebate after 2030? 

The STC scheme is scheduled to end on 31 December 2030. Check current federal and state announcements for anything that replaces it.

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