If you have been thinking about adding a battery to your solar system, the time to sit on the fence is over. According to the Clean Energy Regulator (CER), significant changes to the “Cheaper Home Batteries” rebate program have just been confirmed.
The deadline is 1 May 2026.
If your system isn’t fully installed with the Certificate of Electrical Compliance issued and claimed by then, the amount of “free money” you can receive from the government will drop. For some households, the loss will be thousands of dollars.
What is changing on May 1?
Currently, the federal rebate works on a “flat rate.” Whether you buy a small battery or a massive one, you receive roughly the same generous subsidy for every kilowatt-hour (kWh) of storage you install.
From May 1, 2026, this changes in two significant ways:
1. The Rebate is getting “Tiered” (The Tax Bracket Model)
The government wants to encourage “right-sized” batteries (batteries that fit the average home) rather than massive systems. To achieve this, they are introducing a tiered system similar to income tax brackets:
| Battery Capacity | Rebate Rate Applied |
| 0 – 14 kWh | 100% of the rebate rate (covers standard batteries like Tesla Powerwall 3 or BYD 13.8) |
| 14 – 28 kWh | Only 60% of the rebate rate applies to this portion |
| 28 – 50 kWh | Only 15% of the rebate rate applies to this portion |
2. The Base Rate is Dropping
Even if you are only buying a small battery, the base calculation used to determine the rebate value (called the STC factor) is being reduced faster than usual. It is dropping from a factor of approximately 8.4 down to 6.8.
CRITICAL: The “One Battery Per Premises” Rule
This is vital to understand: The Clean Energy Regulator strictly allows only one solar battery system per premises to be eligible for STCs. Additional solar batteries installed later are not eligible for any rebate after the first claim .
What this means for you:
- If you want a 27kWh system using two batteries, they must be installed together in a single installation to claim any rebate on the capacity beyond the first 14kWh.
- Installing one battery now and adding another later means zero rebate on the second installation.
Real-World Scenarios: How much will you lose?
Depending on what size battery you are planning to buy, here is what happens if you wait until after May 1. (Calculations based on approximate STC price of $40)
Scenario A: The Standard Home (13.5 kWh Battery)
Most households fall into this category – a single Tesla Powerwall 3 or similar.
| Before May 1 | After May 1 | The Impact |
| 13.5 × 8.4 × $40 = $4,536 rebate | 13.5 × 6.8 × $40 = $3,672 rebate | Loss of $864 |
Verdict: Moderate urgency. You are losing nearly $900, but because you’re under the 14kWh cap, you avoid the tier penalty.
Scenario B: The Energy Independence Seeker (27 kWh / 2 Batteries)
Households looking for total off-grid freedom or large storage. Remember: both batteries must be installed together in one job.
| Before May 1 | After May 1 (Tiered Calculation) | The Impact |
| 27 × 8.4 × $40 = $9,072 rebate | First 14kWh: 14 × 6.8 × $40 = $3,808Next 13kWh: 13 × (6.8 × 0.6) × $40 = $2,122Total: $5,930 rebate | Loss of $3,142+ |
Verdict: Extreme Urgency. Waiting past May 1 makes a large system significant
ly more expensive, you could lose over $3,000 in subsidies overnight.
Why is the Government doing this?
It sounds harsh, but the Clean Energy Regulator has called the program a “victim of its own success” for three key reasons:
- Falling Prices: Battery technology prices are dropping naturally. The government believes they don’t need to subsidize them as heavily as before to make them affordable.
- Budget Management: The uptake has been enormous. To make the funding last until 2030, they need to spread the butter thinner across more households.
- Preventing “Oversizing”: They want to discourage people from installing massive 40kWh systems just because the rebate is high. After May 1, the “sweet spot” will be around 10kWh batteries, which will receive a higher proportional subsidy than larger systems.
Your Action Plan
We are currently in mid-February. May 1 sounds far away, but in the solar industry, it is practically tomorrow. Here’s what you need to do right now:
1. Don’t rely on a quote alone
Simply signing a piece of paper is not enough. The system must be:
- Fully installed
- Have the Certificate of Electrical Compliance issued (or state equivalent)
- Paperwork submitted to create the STCs (certificates)
All of this must happen before the May 1 cutoff. A booked installation date is not a guarantee.
2. Ask for a “May 1 Guarantee”
When talking to solar installers, ask them directly: “Can you guarantee the system will be fully installed and the Certificate of Electrical Compliance issued before the May 1 rebate changes?”
If they hesitate or are booked out, look elsewhere immediately.
3. If you want a big system (over 14kWh), move now
If you were planning on a 20kWh+ system, do it now. The economics of large batteries will get much worse in roughly 10 weeks, and you must install the full capacity in one go.
4. If you want a standard system, don’t panic – but hurry
If you miss the date for a standard battery (under 14kWh), the rebate will still be there—it will just be about $800-$1,000 smaller. However, an extra $1,000 in your pocket is better than in the government’s!
Quick Summary
| Your Battery Size | What You’ll Lose If You Wait | Urgency Level |
| Small (under 14kWh) | ~$800 – $1,000 | Moderate |
| Large (20-28kWh) | ~$3,000+ | Extreme |
About this information: This article is based on official announcements from the Clean Energy Regulator regarding the Small-scale Renewable Energy Scheme (SRES) updates taking effect May 1, 2026. For specific advice regarding your situation, consult with a licensed solar installer.
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