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PSW Analysis

Federal battery discount reductions in January and July 2027

Ask what a scheduled battery discount reduction would change on your written quote. Allow time to check battery sizing and placement before bringing an installation forward.

The published schedule

Smaller steps.
A longer view.

Base STC factor
per kWh of usable capacity

Published battery STC factors, May 2026 to December 2030May–December 2026: 6.8. January–June 2027: 5.7. July–December 2027: 5.2. January–June 2028: 4.6. July–December 2028: 4.1. January–June 2029: 3.6. July–December 2029: 3.1. January–June 2030: 2.6. July–December 2030: 2.1. Factors apply before capacity bands and eligibility are considered.02466.8May265.7Jan275.2Jul274.6Jan284.1Jul283.6Jan293.1Jul292.6Jan302.1Jul30

Scroll across to see every period

Source: Clean Energy Regulator ↗. Published factors checked 19 September 2026. Size bands reduce the factor above 14 kWh; eligibility also applies.
View the figures as a table
Battery STC factor by installation period
Installation periodSTCs per kWh
May–December 20266.8
January–June 20275.7
July–December 20275.2
January–June 20284.6
July–December 20284.1
January–June 20293.6
July–December 20293.1
January–June 20302.6
July–December 20302.1
In this article

Tesla started emailing Perth customers this week about the federal battery rebate decreasing in early 2027, with a note to buy a Powerwall before it does. The date is right. What the email leaves out is that the same thing happens again six months later, and every six months after that until 2030.

Here is what the Clean Energy Regulator has published.

Install dateCertificates per kWh
1 May to 31 December 20266.8
1 January to 30 June 20275.7
1 July to 31 December 20275.2
July to December 2030 (final step)2.1

The rebate is paid as small-scale technology certificates. You multiply that factor by the usable capacity of the battery, apply the size bands that came in on 1 May, and the result comes off your invoice. Certificates sit around $37 to $40 each.

January discount reduction

Take a 13.5kWh battery, which is a Powerwall 3 and sits entirely inside the top rebate band.

So about $550. On a 10kWh battery it is closer to $400. Real money, and worth having, but it is not the difference between a battery being worth doing and not.

The 30 per cent does not disappear

The regulator's own wording is that the factor "is adjusted in line with falling battery costs over time", so that the discount keeps landing at around 30 per cent of what the battery costs to install.

That is the design. The dollar figure drops because the expected price drops with it. Whether you end up worse off depends on whether battery prices in Perth fall by more than about $40 per kWh between now and January, and nobody can promise you they will.

So treat the step as what it is. A smaller cheque against a price that is meant to be smaller too. Not a rebate being switched off.

Illustration of a home battery beside descending terraces and a calendar.Illustration of a home battery beside descending terraces and a calendar.Illustration of a home battery beside descending terraces and a calendar.Illustration of a home battery beside descending terraces and a calendar.
PSW Energy · Editorial illustration

The six-month reduction schedule

From January the factor moves twice a year, on 1 January and 1 July, all the way down to 2.1 before the scheme closes on 31 December 2030.

The factor keeps stepping down until 2030, so there will always be another reduction approaching. Ask what it is worth for your battery, and read the contract before signing.

If a salesperson is leaning on a countdown, ask them what the step is worth on your battery in dollars. The answer is on this page. If the number they give you is much bigger than that, ask where it came from.

Installation timing

If you were already going to put a battery in before Christmas, get it installed before 1 January and keep the $550. That is a straightforward win and we will help you hit the date.

If you were not, do not let this drag your decision forward. Rushing an install to beat a step down is how people end up with a battery mounted on a west-facing wall in full sun, or a system sized off a package brochure instead of twelve months of their own Synergy data. We have been called out to fix both. Neither mistake costs $550. They cost multiples of it, every year, for the life of the system.

One practical thing if you are going for the December date. The install date is what sets the rebate, not the quote date and not the deposit date. December and early January are the two worst weeks of the year to be chasing an install slot in Perth, and Western Power approvals slow right down over the break. Booking in late November is comfortable. Booking on 15 December is a gamble with somebody else's calendar.

Also check the battery model is still on the Clean Energy Council approved list on the day it goes on the wall, because that list changes and a model coming off it costs you the whole rebate, not $550 of it.

If you want the size worked out from your own consumption rather than from a countdown, get a quote and bring twelve months of bills.

PSW Editorial publishes practical guides to solar, batteries and home energy for Western Australian households. We explain how systems work, what to check before buying and what changes in policy or product support mean for your home. Our aim is to help you compare options, understand the trade-offs and ask useful questions before making a decision.

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