Yes for most homes with solar, and the 1 January cut is smaller than the marketing suggests. For a typical 10 kWh battery the federal rebate falls by roughly $400; for a 13.5 kWh unit, about $550. That is real money, but it is a few percent of the job, not a reason to sign a rushed contract. The date that matters is the installation date, not the day you sign.
| Battery added to existing solar, after rebate | $10,000–$14,000 |
| Powerwall 3 (13.5 kWh) installed, after rebate | $8,400–$11,000 |
| 6.6 kW solar + 10 kWh battery, new install, after rebate | $12,000–$18,000 |
| Battery replacement at 10–15 years | $8,000–$13,000 |
What actually changes on 1 January
The Cheaper Home Batteries Program pays its discount through small-scale technology certificates, or STCs. Your battery earns a number of STCs per kilowatt-hour of usable capacity, the installer sells them, and the value comes off your invoice. Two settings move on 1 January 2027.
- The STC factor steps down from 6.8 to 5.7 certificates per kWh. It then drops again every six months until the program ends in 2030, so each half-year is a little less generous than the last.
- The size tiers stay as they have been since 1 May 2026: the first 14 kWh earns the full factor, 14 to 28 kWh earns 60% of it, and 28 to 50 kWh earns 15%. Nothing above 50 kWh earns a certificate.
Each STC has been trading at roughly $37 after the installer's admin cut. That number moves with the market, so treat the calculator below as a guide and your installer's quote as the figure that counts.
What the cut costs you
Should you rush to beat the date?
Only if you were going to install anyway and can get a confirmed installation slot. The Clean Energy Regulator warned retailers in March not to promise pre-deadline installs they cannot deliver. A battery installed on 2 January at the lower rebate is a better outcome than one installed on 28 December by a crew in a hurry.
If you are still deciding, the question is not the rebate. It is whether a battery pays back at all for your house. Three things decide that.
Three things that matter more than the rebate
1. How much solar you waste
A battery earns its keep by storing power you would otherwise export for a feed-in tariff of a few cents and using it after dark instead of buying grid power at 30 cents or more. Check a recent bill: if you export more than half of what you generate, a battery has something to work with.
2. Your evening usage
Households that cook, run air conditioning and charge devices between 5pm and 10pm get the most out of storage. A 10 kWh battery covers a typical evening for a three or four bedroom home. Our comparison page puts annual savings for solar plus battery at $2,200–$3,000, against $1,200–$1,800 for solar alone.
3. Free midday power changes the maths
If you are in NSW, South Australia or south-east Queensland, the Solar Sharer offer gives three free hours of grid electricity around midday. A battery can charge from that free window on cloudy days, which improves its return. Ask the installer whether the system can be set to do this.
What to ask your installer
- What is the usable capacity, in kWh? The rebate is paid on usable capacity, not the nameplate figure.
- Which rebate is this quote based on, and until what install date is it valid? A quote written before the change should say so.
- Is the STC discount shown as a line item? It should be, so you can see what the rebate is worth.
- Can the battery charge from the grid during the free midday window? Most modern systems can; the setting is in the app.
- Does the price include blackout backup? The backup gateway adds $500–$1,500 and is often quoted separately.
Sam's tipBigger is not better after 1 May. Capacity above 14 kWh earns only 60% of the rebate, and above 28 kWh just 15%. Size the battery to your evening usage, not to the rebate.
Get a battery quote with the right rebate on it
Tell us your suburb and whether you already have solar. We'll match you with a local accredited installer to quote. Free, no obligation.
Get a quote →