The battery STC factor fell on 1 May 2026 and falls again in 2027. What the rebate changes mean for your quotes, and how to follow up without pressure.
Key takeaways
- The battery STC factor dropped from 8.4 to 6.8 per kWh on 1 May 2026 and is scheduled to fall to 5.7 in January 2027.
- Capacity above 14 kWh now earns a reduced share, which changes how you size and quote.
- Homeowners are told to compare several quotes, so the installer who follows up clearly stays in the race.
- Every follow-up should be factual and sourced. The ACCC is watching for pressure selling.
What changed in the Cheaper Home Batteries Program on 1 May 2026?
The battery rebate changes 2026 brought were about size and money. The Clean Energy Regulator redesigned the program (13 December 2025) after demand ran far ahead of forecast, lifting estimated funding from $2.3 billion to $7.2 billion over four years.
From 1 May 2026, the number of STCs a battery creates depends on its usable capacity in tiers. The aim, according to the regulator, is to keep the discount at about 30 percent of a typical system’s cost while stopping very large batteries from taking an outsized share.
The eligibility rules did not change. The battery must be on the Clean Energy Council’s approved list, must be VPP-capable, and must be installed by a Solar Accreditation Australia accredited installer with battery endorsement (Clean Energy Regulator, updated 31 July 2026).
How do the 14, 28 and 50 kWh tiers change what you should quote?
Under the Cheaper Home Batteries Program installers now quote against three bands:
| Usable capacity | Share of the full STC factor |
|---|---|
| 0 to 14 kWh | 100 percent |
| Above 14 to 28 kWh | 60 percent |
| Above 28 to 50 kWh | 15 percent |
The market has already moved. The regulator’s June quarter 2026 report shows average battery size falling from 36 kWh in April to about 23 kWh in May and June, once the tiers applied.
For a quote, that means showing the customer how the rebate falls as the battery grows. A household that needs 13 kWh gets the full factor on every kilowatt hour. One that wants 30 kWh should see, line by line, what the extra capacity costs after the rebate.
What happens to the battery STC factor in 2027 and beyond?
The battery STC factor is scheduled to step down every six months. It is 6.8 per kWh for May to December 2026, 5.7 for January to June 2027, and keeps falling to 2.1 by the second half of 2030 (Clean Energy Regulator).
Treat the schedule as published policy, not a forecast you can promise. Reports in 2026 said the government had modelled other options, so check the regulator’s page before any campaign that mentions dates.
STC prices matter too. In the June quarter the clearing house price was $40 and the spot price sat just under it, but the regulator reported waits of more than four weeks at the peak of the backlog in May (June quarter report). That timing affects your cashflow, not the customer’s price.
Why are homeowners comparing more quotes now?
Because they have been told to. The ACCC put the electricity industry on notice in August 2025 and advised households to take their time, avoid pressure and get several quotes.
Complaints have risen with volume. RenewEconomy reported in July 2026 that the ACCC saw a 107 percent rise in solar and battery complaints in the March quarter compared with a year earlier, led by misleading advice and long delays after deposits.
So the homeowner sitting on three quotes is not being difficult. They are doing what the regulator asked. The installer who explains clearly and stays in touch politely is still in the conversation when they decide.
How do you follow up a quote before the next rebate step down?
Good solar quote follow up is plain and specific. A sequence that respects the customer might look like this:
- Same day: the quote summary, the battery size, the STC tier it falls in and the regulator’s link.
- Three to four days later: a short check-in asking whether they have questions about sizing or the install date.
- Two weeks before a scheduled factor change: a factual note with the date, the current factor and the next one, and the regulator’s page.
- After that: stop, unless they reply. Silence is an answer.
Do not invent urgency. A step down that is published and dated is a fair thing to mention. A “this week only” price that is not real is the kind of claim the ACCC acts on.
Messages sent by SMS or email for marketing need the customer’s consent and a clear way to opt out. Check the ACMA’s current spam rules before you switch a sequence on.
How does automated battery quote follow-up keep stalled quotes alive?
Most quotes go cold for ordinary reasons. The owner is on a roof, the customer is busy, and nobody remembers to check in. Automated battery quote follow-up removes the remembering.
In a CRM, each quote carries its stage. When it is marked as sent, the sequence above starts on its own and stops the moment the customer replies, accepts or opts out. The rebate date becomes one field the system already knows, so the reminder goes out at the right time for every open quote at once.
That is the job solar installer software such as LYD Solar Suite is built to do. It is also why buying more solar leads Australia wide rarely fixes a conversion problem: the quotes you already have are closer to a sale than any new lead.
Who builds this for solar installers?
Launch Your Dream, by Sharktech Global, builds LYD Solar Suite for solar and battery installers. It brings a website, CRM, AI assistant, booking, automated follow-up, review requests and a dashboard into one system, up and running within 7 working days of receiving your onboarding details. Open the live demo or book a free 30 minute discovery call.
General information only, not financial or legal advice. Rebate settings can change. Check the Clean Energy Regulator before quoting.
Common questions
- What is the battery STC factor from May 2026?
- 6.8 per kWh of usable capacity from May to December 2026, according to the Clean Energy Regulator. It is scheduled to fall to 5.7 from January to June 2027.
- Do large batteries still get the full rebate?
- No. From 1 May 2026 the first 14 kWh earns the full factor, capacity from 14 to 28 kWh earns 60 percent, and capacity from 28 to 50 kWh earns 15 percent.
- Who can install a battery under the program?
- An installer accredited by Solar Accreditation Australia with battery endorsement. The battery must be on the approved list and be VPP-capable.
- Is it fair to mention the next step down in a follow-up?
- Yes, if it is accurate and sourced. State the date and the factor, link the regulator's page and let the customer decide. Avoid invented deadlines or pressure.
- How quickly should I follow up a battery quote?
- There is no published standard. A sensible pattern is a summary the same day, a check-in a few days later and a reminder before any scheduled rebate change.