What the federal "rebate" actually is
There's no cheque in the mail. The federal rebate works through Small-scale Technology Certificates (STCs). When a solar system or battery is installed, it creates a number of certificates based on its size, where you live and the install date. Your installer claims those certificates and takes their value straight off your quote, so you pay less upfront.
For batteries, this is called the Cheaper Home Batteries Program. For solar panels, it's the long-running Small-scale Renewable Energy Scheme. Both are paid in STCs, and both get smaller over time. Certificate prices move with the market; in this guide we use $38 per STC as an example.
The battery rebate step-down
The battery rebate is set by a "factor": the number of STCs each kWh of usable battery capacity earns. It started higher, was reduced on 1 May 2026, and now steps down every six months until the program ends after 2030.
What that means in dollars
| Battery size (usable) | Installed by 31 Dec 2026 | Jan–Jun 2027 | Jul–Dec 2027 | Lost by waiting to Jan |
|---|---|---|---|---|
| 10 kWh | $2,584 | $2,166 | $1,976 | −$418 |
| 13.3 kWh | $3,420 | $2,850 | $2,622 | −$570 |
| 16 kWh | $3,914 | $3,268 | $3,002 | −$646 |
| 20 kWh | $4,522 | $3,800 | $3,458 | −$722 |
| 25 kWh | $5,320 | $4,446 | $4,066 | −$874 |
| 32 kWh | $5,928 | $4,978 | $4,522 | −$950 |
| 40 kWh | $6,232 | $5,206 | $4,750 | −$1,026 |
Federal battery rebate only, at $38 per STC, rounded down to whole certificates. Excludes the WA rebate. Your actual figure depends on the battery's approved usable capacity and the STC price on the day.
Why big batteries get less per kWh
Since 1 May 2026, the full rate only applies to the first 14 kWh. The next 14 kWh earns 60%, and anything from 28 to 50 kWh earns just 15%. That's why the rebate on a 40 kWh battery isn't double the rebate on a 20 kWh one.
Solar panels drop too
It's not just batteries. The solar panel rebate is worked out on the number of years left until the scheme ends in 2030, called the deeming period. A system installed in 2026 gets 5 years' worth of certificates; in 2027 it's 4. So every 1 January, the solar rebate falls by about a fifth. Perth is in STC zone 3.
| Solar system (Perth) | Installed in 2026 | Installed in 2027 | Difference |
|---|---|---|---|
| 6.6 kW | $1,710 | $1,368 | −$342 |
| 10 kW | $2,622 | $2,090 | −$532 |
| 13.3 kW | $3,458 | $2,774 | −$684 |
Perth zone 3 rating 1.382 MWh per kW, 5 years (2026) vs 4 years (2027), $38 per STC, rounded down to whole certificates.
A real Perth example
Take a typical Perth family on Synergy adding 6.6 kW of solar and a 20 kWh battery:
- Solar STCs: $1,710
- Battery STCs: $4,522
- WA battery rebate: $1,300
- Solar STCs: $1,368
- Battery STCs: $3,800
- WA battery rebate: $1,300
The WA rebate and interest-free loan
On top of the federal rebate, the WA Residential Battery Scheme gives eligible households:
The WA scheme is planned to support up to 100,000 households, and more than 20,000 had already installed a battery by May 2026. No date change has been announced, but places are limited, so it won't be there forever. The state and federal rebates stack, so you get both. Read more in our complete guide to solar batteries in Perth.
Install date is what counts
This is the bit most people miss. The federal rebate is set by the day your system is installed, not the day you sign. Before install day there's usually a grid application with Western Power and, if you're using the WA loan, finance approval, which can take a few weeks.
Other 2026 changes in WA
New WA solar and battery rules (from 1 May 2026)
New systems must be able to connect online so the grid can manage them. Systems that aren't connected are limited in what they can export. We explain it simply in WA solar & battery rules 2026.
Batteries are getting bigger and cheaper
Average battery sizes have grown fast, which is one reason the federal government tiered the rebate. Compare real systems we install: Fox ESS 41.76 kWh, GoodWe 40 kWh ESA, Growatt 40 kWh and AlphaESS 27.98 kWh.
VPPs are now part of the deal
To get the WA rebate, your battery joins a Virtual Power Plant, which can earn you extra credits for sharing stored power at peak times.
Should you rush?
If you were already planning solar or a battery in the next year, getting it installed before 31 December 2026 keeps the higher federal rebate. But don't rush into the wrong system:
Get the size right first
Base it on your power bill and evening usage. A battery that's too big earns little extra rebate.
Check your spot and switchboard early
Old switchboards or tricky battery spots can add time. See how a Perth battery installation works.
Apply for the WA loan early
If you're using the no-interest loan, start the application as soon as you sign so approval doesn't hold up your install.
Recent Solar Red installs in Perth
Frequently asked questions
- Is the federal battery rebate ending on 1 January 2027?
- No. It isn't ending, it's getting smaller. On 1 January 2027 the number of certificates (STCs) a battery earns per kWh drops from 6.8 to 5.7, then to 5.2 on 1 July 2027, and keeps stepping down every six months until the program finishes at the end of 2030.
- Is the solar panel rebate dropping too?
- Yes. The federal rebate for solar panels (also paid as STCs) drops every 1 January. A 6.6 kW system in Perth earns about 45 STCs if installed in 2026 and about 36 if installed in 2027, roughly $342 less at $38 per STC.
- Does the date I sign or the date I install count?
- The install date. The rebate is worked out from the day your system is installed, not the day you sign the quote. If you sign in December but install in January, you get the lower 2027 amount.
- Is the WA battery rebate changing on 1 January 2027 as well?
- No date change has been announced for the WA Residential Battery Scheme. It pays up to $1,300 for Synergy customers and up to $3,800 for Horizon Power customers, on top of the federal rebate, and is planned to support up to 100,000 households. It closes when those places are used, so there's no fixed end date.
- How much will I lose if I wait until next year?
- For a typical Perth home adding a 6.6 kW solar system and a 20 kWh battery, the federal rebates drop by about $1,064 if the install moves from 2026 to January 2027 (at $38 per STC). Bigger batteries lose more.
- Should I buy a bigger battery to get more rebate?
- Not just for the rebate. Since May 2026 the federal rebate pays full rate only on the first 14 kWh, 60% on 14 to 28 kWh and 15% on 28 to 50 kWh. Size your battery to your bill and evening usage, not the rebate.
- Can I still get the WA interest-free loan?
- Yes, if your household income is under $210,000. The WA scheme offers no-interest loans of up to $10,000 over 10 years towards a battery (and solar, if installed with the battery). Solar Red is an approved Plenti seller and can help you apply.
Want your exact rebate before 1 January?
Send us your latest power bill and we'll show you the federal and WA rebates on your system, both now and after 1 January, and whether an install before the change is realistic for your home. Local Perth team, Plenti-approved for the WA rebate and no-interest loan.
Call 1800 449 733Get my rebate checkKeep reading
Sources: DCCEEW, Cheaper Home Batteries Program; Solar Choice, changes from 1 May 2026; Clean Energy Regulator, deeming period decline; WA Government, 19 May 2026; SolarQuotes, WA battery rebate changes. Dollar figures use $38 per STC as an example; STC prices change. This guide is general information, checked 14 October 2026; your quote shows your exact rebate.
