The federal battery discount steps down every 1 January and 1 July, and solar STCs every 1 January. How those dates affect the price on your quote, how to plan around installation lead times, and why a date should never make the decision for you. The federal battery discount is worth roughly 30% of the installed cost of a home battery, but its per-kWh value steps down every 1 January and 1 July until 2030, and the STC discount on new solar steps down each 1 January. Because the discount depends on when the system is installed rather than when you sign, a quote that assumes one date can cost more if installation slips past a step-down. Planning around those dates is sensible; rushing into the wrong system to beat one is not.
How the step-downs work
Both discounts are delivered through Small-scale Technology Certificates (STCs). The installer creates and assigns the certificates for your installation, and their value comes off your price at the point of sale. Two schedules matter:
| Factor | New solar panels (STCs) | Home battery (Cheaper Home Batteries Program) |
|---|---|---|
| Typical discount now | Roughly $1,700-$1,800 off a typical 6.6 kW system installed in 2026 | Roughly 30% off the installed cost |
| How it is worked out | System size, location and the years left in the scheme | Usable capacity, in tiers: approximately $272 per kWh for the first 14 kWh, $163 per kWh from 14 to 28 kWh, $41 per kWh from 28 to 50 kWh |
| When it steps down | Each 1 January | Every 1 January and 1 July |
| Scheme runs to | 2030 | 2030 |
The tiers mean capacity matters as much as timing. A 10 kWh battery sits entirely in the first, highest-value tier, while a 20 kWh battery has 14 kWh at the first-tier rate and the remaining 6 kWh at the second. The battery must be installed with solar, existing or new at the same time, be on the approved products list and be installed by an SAA-accredited installer. The Clean Energy Regulator explains the program on its Cheaper Home Batteries Program page; confirm current values there before signing.
What a step-down means for your price
When a step-down arrives, the equipment and the installation cost the same, but the discount deducted is smaller, so the amount you pay rises by the difference. Because the battery discount is calculated per kWh, the size of that difference depends on your battery's usable capacity. The rule works the same way in reverse: a site that is ready early and installed before a step-down simply receives the values current on its installation date. That creates three situations worth understanding:
- Installed before the step-down: the current values apply.
- Quoted before, installed after: the lower values apply, so a quote that assumed the earlier date will change. A clear quote states which installation timing its discount assumes.
- Delayed by things outside your control: network approval, a required switchboard upgrade, equipment supply or wet weather can push a job across a date. Ask how the contract handles that before you sign.
Planning around lead times
A battery is not installed the day you decide to buy one. Work backwards from the next step-down (1 January 2027 for both solar and batteries, then 1 July 2027 for batteries) and allow for each stage:
- Site assessment of the switchboard, meter, existing solar, roof and battery location.
- Quote and decision time, including time to compare options properly.
- Additional works, such as a switchboard upgrade, if the assessment identifies them.
- Network application and any conditions set for your connection.
- Equipment and scheduling, which can get busier in the weeks before a step-down as other households have the same idea.
- Installation and commissioning, after which the certificates are created.
Additional works are often the stage that stretches a timeline, because a switchboard upgrade or a network condition only becomes clear once someone has properly looked at the site. That is one reason our team assesses every home in person rather than quoting off satellite images. Starting several weeks ahead gives each stage room to run without cutting corners. If backup for storm season is part of your reason for buying, an earlier start also means the battery is ready when you want it.
Do not let a date make the decision
Step-downs are real, but they are gradual, and the program runs to 2030. A poorly chosen battery costs you for far longer than one step-down does. Be wary of:
- Pressure to sign on the spot because "the rebate is ending", when the next change is a step-down, not the end of the program
- A battery sized well beyond your evening usage and backup needs, justified mainly by capturing more discount
- A quote that skips a proper site, switchboard or network check to save time
- Vague answers about who carries the cost if installation slips past a step-down
- No mention of which installation timing the discounted price is based on
A slightly smaller discount on the right system is better value than a bigger discount on the wrong one. And if a step-down has already passed, the sensible response is to re-check the sizing and the numbers with the new values, not to abandon a battery that still suits your home. Test your sizing first with our battery-only calculator, which shows how capacity relates to your usage.
How we handle timing in our quotes
Our quotes show the federal battery discount and any STCs already deducted, based on the expected installation timing. If that timing sits close to a step-down, we point it out, so you can decide with the full picture rather than under pressure. If you want to understand which incentives apply before asking for a full quote, our Battery Incentive Assessment is listed at $99 in our energy market, with the fee credited if you go ahead. As with all our prices, it is indicative and confirmed after assessment.
Next steps
If a battery is on your list for the next six to twelve months, the best time to start is before a date feels urgent. Request a free quote and our team will arrange an in-home site assessment, size the battery to your usage, and show the discount that applies to the planned installation timing.
Frequently asked questions
Do step-downs apply when I add capacity to a battery I already own?
They can. The federal discount may apply to eligible added capacity, such as compatible expansion modules, and the same step-down schedule applies, so the value depends on when the extra capacity is installed. Whether an expansion qualifies depends on compatibility, the approved products list and the program rules, so ask for eligibility to be confirmed in writing in the quote.
Will falling battery prices cancel out the step-downs?
Nobody can say reliably. Equipment prices move with global supply, exchange rates and demand, and they do not follow the step-down calendar. Waiting might work out or it might not. A better test is whether a battery makes sense for your usage and backup needs now; if it does, the bill savings you give up while waiting are also part of the cost.
Does the solar STC step-down affect a battery added to existing solar?
No. The 1 January STC step-down for solar affects the discount on new solar panels. A battery added to existing solar is covered by the Cheaper Home Batteries Program, which steps down on 1 January and 1 July. If you install new panels and a battery together, each part of the quote follows its own schedule, and both change on 1 January.
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