Upcoming changes to Federal Government Rebates

The Federal Government’s Cheaper Home Batteries Program provides battery rebates to help make getting a battery system more affordable for Australians. The rebate offered through the Program is based on the number of small-scale technology certificates (STCs) a particular battery system creates, as well as its installation date. The more STCs created, the higher the rebate applied to the system’s upfront cost. 

The support provided through the Program is scheduled to decline every six months until it ends in 2030, with the next reduction planned for 1 January 2027. That means battery systems installed from January onwards will be eligible for fewer STCs and lower rebates. 

The next few rebate reductions are outlined below. You can learn more about the STC Factor and view the full schedule in the 'Estimating your rebate' section below.  

What this means for you 

Because the federal rebate will decline over time, the timing of your battery installation matters.  

High demand for solar and batteries means installation lead times in WA can be long and range from 4 to 40 weeks, depending on the installer. If you’re considering adding a battery to your home, it’s better to act sooner rather than later, as installation timing can affect the rebate you receive.  

When you request recommendations and a quote through Kleenheat Spark, we’ll: 

• show you the rebate you’re eligible for based on current installation lead times, and
• provide a fixed-price quote with this rebate included. You’ll receive that rebate amount as long as you accept the quote during its validity period.  

Your installer will handle the rebate process on your behalf, so you don’t have to worry about applying for it.  

How the federal rebate works 

Here’s a more detailed look at how the federal battery rebate works.  

When you install an eligible system, STCs are created based on the battery’s usable capacity and the installation date. These are typically assigned to your installer in exchange for a reduction in the system cost.  

The number of STCs your system may be eligible for depends on two key factors: 

1. The battery’s usable capacity 
   This is how much energy your battery can store and use, measured in kWh.
2. The STC factor 
   This is a government-set value that determines how many certificates are created per kWh of usable capacity. Because this value decreases every six months, systems installed later may generate fewer STCs and result in a lower rebate.  

Example: 
If the STC factor is 10 and your battery has 10 kWh of usable capacity, it may be eligible to generate around 100 STCs. 

STCs only apply to the first 50 kWh of a battery’s usable capacity.

Estimating your rebate 

For a simple rebate estimate, you can use: 

Estimated rebate = usable battery capacity × STC factor × STC price. 

This formula provides a simplified estimate only. For batteries larger than 14 kWh, the number of STCs generated is calculated differently for portions of the battery's usable capacity, as explained in the 'How usable capacity affects the rebate' section below.

The STC price varies depending on market conditions and installer fees, but is typically around $38–$40 per certificate. 

The full schedule of planned STC factor reductions is shown below.