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Quick Summary
If solar panels or a home battery have been on your mind, now is the time to act. Australia’s federal incentives for solar and batteries will be reduced from 1 January 2027. Installing an eligible system before the end of 2026 will earn you more Small-scale Technology Certificates than waiting.
Waiting could leave you with a smaller upfront discount. There’s no need to rush into the first offer you see because the rebates are not disappearing overnight. But if solar or a battery is already on your wishlist, acting before the next reduction could lock in more government support and help you start saving on your electricity bills sooner.
What Is Changing With the Solar Rebate?
The federal solar rebate is delivered through the Small-scale Renewable Energy Scheme. When an eligible solar system is installed, it generates Small-scale Technology Certificates, commonly called STCs. These certificates have financial value and are generally exchanged for an immediate discount on your system's cost.
Most customers do not need to create or sell the certificates themselves. The right to create them is usually assigned to the solar retailer or an authorised agent, and their estimated value is deducted from the quoted price. The number of certificates available depends on several factors, including:
- The size of the solar system
- Where the property is located
- Its expected electricity generation
- The year in which it is installed
Why Do the Solar and Battery Rebates Keep Changing?
Rebates change because they were designed to decline over time rather than remain fixed. The solar-panel incentive is gradually phased down as the Small-scale Renewable Energy Scheme ends in 2030. Its calculation is reduced every January, so solar systems generate fewer certificates as the scheme ends.
The newer battery rebate is adjusted regularly to reflect falling battery prices, demand, and program cost. These changes aim to keep government support sustainable while encouraging more households to adopt renewable energy. However, the discount available today may not be the same when your system is installed. Equipment prices and STC market values can also change, so delaying installation in hopes of a larger rebate can be risky.
The Solar Rebate Will Reduce on 1 January 2027
The solar rebate is gradually phased down through a mechanism called the “deeming period.” The deeming period is the number of future years of renewable electricity generation recognised when calculating certificates for a new solar system. It reduces by one year every January until the Small-scale Renewable Energy Scheme ends in 2030.
For systems installed in 2026, the calculation is based on five years of expected generation. From 1 January 2027, it will be based on four years.
- 2027: four years
- 2028: three years
- 2029: two years
- 2030: one year
Moving from a five-year deeming period in 2026 to four years in 2027 means a similar solar installation will generate about 20% fewer solar STCs. This does not mean the final system price will increase by 20%. Certificate values, equipment costs, and installer pricing can change. It means the government portion of the upfront solar discount will be smaller.
The exact dollar difference will depend on the system's size and location, as well as the market value of STCs at the time. What we do know is that the federal support available for rooftop solar will be lower after 31 December 2026.
You can read more about the scheduled deeming-period reductions on the Clean Energy Regulator website.
The Federal Battery Rebate Is Also Reducing
The Cheaper Home Batteries Program is separate from the traditional solar-panel rebate, though both use STCs to provide an upfront discount. Eligible households and small businesses can get a discount on an approved home battery installed by an accredited installer.
The battery rebate changed once in 2026. On 1 May, the STC factor used to calculate the discount dropped from 8.4 to 6.8. It will be reduced again:
- Until 31 December 2026: STC factor of 6.8
- 1 January to 30 June 2027: STC factor of 5.7
- 1 July to 31 December 2027: STC factor of 5.
- The factor will continue to decline every six months until 2030. The drop from 6.8 to 5.7 means about 16% fewer battery STCs before the capacity-based taper applies. The final dollar difference depends on the battery’s usable capacity and certificate value at that time.
The Australian Government says these adjustments aim to keep the discount around 30% for various battery sizes as prices fall. However, each installation will generate fewer certificates. The rate depends on the date the battery is installed and certified, not when you request a quote, sign a contract, or pay a deposit. More information about the changes is available from the Department of Climate Change, Energy, the Environment and Water.
Larger Batteries Now Receive a Tapered Discount
The battery rebate is no longer calculated at the same rate across the entire usable capacity of larger systems. Since 1 May 2026, the STC factor is weighted as follows. The first 14kWh of usable battery capacity receives 100% of the applicable factor.
- Capacity above 14kWh and up to 28kWh receives 60%.
- Capacity above 28kWh and up to 50kWh receives 15%.
- Capacity beyond 50kWh does not generate additional battery STCs.
Eligible systems may still have a nominal capacity up to 100kWh. However, support decreases as capacity grows. Choosing a bigger system is not always the best decision. Size your battery around your solar generation, electricity consumption, evening usage, and backup needs. A carefully designed system may deliver better value than a bigger one chosen without considering how your household uses power.
What Systems Are Eligible?
Eligibility depends on the equipment, installation, and program requirements in place at the time. Solar panels, inverters, and batteries must meet the relevant approval requirements, and accredited installers must complete the work.
Under the Cheaper Home Batteries Program, eligible battery systems generally have between 5kWh and 100kWh of nominal capacity. However, STCs are only provided for the first 50kWh of usable capacity.
Your solar company should confirm that the proposed equipment and installation meet the relevant requirements before you sign a contract. The quote should clearly show whether the applicable STC discount is already included in the advertised or final price.
Does This Mean You Need to Install Before 2027?
If you plan to install solar or a battery, completing it in 2026 lets you access a larger federal incentive. Waiting costs money because your electricity bills rise while you decide. Every additional quarter without solar means buying electricity from the grid. If you have solar but export excess energy during the day and buy electricity at a higher rate at night, delaying a battery extends that cycle.
Installing sooner may allow you to:
- Secure the current STC calculation before it reduces
- Begin lowering your grid electricity consumption
- Store more of the solar energy generated at home
- Reduce your exposure to future electricity-price increases
- Avoid the installation rush as the next rebate reduction approaches
However, beating a rebate reduction should never come at the expense of choosing a quality system. A cheap or poorly designed installation can cost much more than the rebate saves.
Don’t Wait Until December to Start Looking
The relevant date is usually when the system is installed, not when you receive a quote. Solar or battery installation requires time for system design, site inspections, equipment supply, network approvals, scheduling, and installation. Meter or switchboard work can add more time.
Leaving everything until December may not allow enough time to complete installation before new rates apply. Starting now lets you compare options, ask questions, and choose a system calmly.
Solar Installation Calendars Are Already Filling
Installation calendars are filling as households try to complete systems before rebates reduce again. Established solar companies have lead times for site assessments, network approvals, equipment supply, and installation, especially during high demand. Wait times may grow longer as 2026 ends.
Receiving a quote or paying a deposit does not guarantee the current incentive. If schedules fill and your system is delayed into 2027, the lower rebate may apply. Starting now improves your chances of securing an installation date, completing approvals, and installing before the next reduction.
How to Choose the Right Solar Company Before the Rebate Changes
A rebate deadline can create urgency, but it shouldn't push you to choose the first company that promises an installation date. The right solar company will take time to understand your electricity use, explain why a system suits your home, and provide a detailed quote showing what is included. Before accepting a solar or battery quote, check:
- Whether appropriately accredited installers will complete the work
- The exact panel, inverter and battery models included
- Whether the equipment meets current program requirements
- How the system has been sized for your household
- The battery’s usable capacity and power output
- Whether blackout backup is included and what it can operate
- Whether switchboard, metering or additional installation work may cost extra
- What product, performance and workmanship warranties apply
- Whether the quoted price already includes the applicable STC discounts
- Who will provide support if something goes wrong after installation?
- Whether the company has established reviews and a history of completed installations
Be cautious of unusually cheap quotes, vague equipment descriptions, and companies promising a rebate without confirming the installation timeline. Also consider who will answer the phone in five or ten years if you need technical help or warranty support. The cheapest quote today may not be the cheapest over the system’s lifetime.
At Stag Electrical, we provide clear advice, approved equipment, and professionally designed solar and battery systems based on your household’s power use. We explain what you are paying for, what current incentives cover, and whether the proposed system makes financial sense for your home.
The longer you wait, the less federal support will be available. Solar installed from 1 January 2027 will generate fewer certificates than solar installed in 2026. The battery STC factor will reduce on 1 January 2027 and drop again six months later.
That does not mean you should install the wrong system just to beat a date. It means if you want solar or a battery, there is a real financial reason to get organised now. At Stag Electrical, we design solar and battery systems based on your household's electricity use. We explain the available rebates, calculate the current discount, and show you exactly what is included in your quote.
Contact Stag Electrical now to arrange your quote and give your installation the best chance of completion before the end-of-year deadline.
Frequently Asked Questions About the 2027 Solar and Battery Rebate Changes
Is the Australian solar rebate ending in 2027?
No. The federal solar rebate is not ending in 2027 but will be reduced on 1 January. The Small-scale Renewable Energy Scheme is gradually phased down until 2030. The deeming period shortens by one year each January. Solar installed in 2026 receives STCs based on five years of expected generation, while solar installed in 2027 receives them based on four years.
How much will the solar rebate reduce in 2027?
An equivalent solar system installed in 2027 will generally generate about 20% fewer solar STCs than one installed in 2026. This does not mean the system’s final price will rise by 20% because STC values, equipment costs, and installer prices vary. It means the government-created portion of the upfront discount will be smaller.
When is the battery rebate changing again?
The federal battery rebate will reduce on 1 January 2027. The battery STC factor will fall from 6.8 to 5.7, about 16% fewer battery STCs before the capacity-based taper applies. It will reduce again to 5.2 on 1 July 2027.
Is the solar rebate paid into my bank account?
Usually not. The federal solar incentive operates through Small-scale Technology Certificates. Most customers assign the right to create these certificates to their solar retailer or authorised agent. The estimated value is deducted from the system’s upfront price.
Does signing a contract in 2026 lock in the current rebate?
Not necessarily. The applicable incentive is generally based on when the system is installed and, for batteries, certified. Requesting a quote, signing a contract, or paying a deposit does not guarantee the 2026 rate if installation is delayed until 2027. Ask the solar company to confirm the installation timeline and how any rebate change will affect the final price.
Should I install solar before the end of 2026?
If you plan to install solar, completing it during 2026 could let you receive more STCs than waiting until 2027. Installing sooner also means you can start reducing your reliance on grid electricity earlier. However, choose a properly designed system and a reputable installer instead of rushing into an unsuitable quote.
Can I receive both the solar and battery rebates?
Potentially, yes. A new solar-and-battery system may generate solar STCs for the panels and separate battery STCs under the Cheaper Home Batteries Program, provided the equipment and installation meet eligibility requirements. Your quote should clearly show which incentives have been applied. You can generally add an eligible battery to an existing solar system if the battery, existing solar connection, and installation meet program requirements. An accredited installer must approve and install the battery.
Does a larger battery receive a larger rebate?
Larger batteries may generate more STCs, but the rebate is tapered. The first 14kWh of usable capacity receives 100% of the applicable STC factor. Capacity above 14kWh up to 28kWh receives 60%, and capacity above 28kWh up to 50kWh receives 15%. No additional battery STCs are provided beyond 50kWh of usable capacity.
Will solar and battery prices definitely increase in 2027?
Nobody can guarantee the total price of a system. Equipment costs, exchange rates, installation expenses, and STC market values can all vary. What is certain is that an equivalent eligible installation will generate fewer solar and battery certificates under the scheduled 2027 calculations.
Why shouldn’t I wait until December to book my installation?
Solar companies can become heavily booked before a scheduled rebate reduction. Your system may also require design work, equipment ordering, network approval, site preparation, or switchboard upgrades. If installation cannot be completed until 2027, the lower incentive will apply even if you requested the quote in 2026.
How do I know whether my system qualifies for the rebate?
Eligibility depends on the equipment, system size, and installation requirements. Solar panels, inverters, and batteries must meet relevant approval standards, and accredited installers must complete the work. Your solar company should confirm eligibility and clearly show applicable STC discounts on your quote.
How can Stag Electrical help me secure the current rebate?
Stag Electrical can assess your electricity use, recommend an appropriately sized solar and battery system, explain available incentives, and show you exactly what is included in your quote. Starting early gives you the best chance to complete your installation before rebates are reduced again.
