Changes to Battery STC calculations from 1 May 2026
On 13 December 2025, the Australian Government announced updates to the Cheaper Home Batteries Program. These changes are designed to keep the program sustainable and relevant as battery uptake grows
From 1 May 2026:
The STC Factor will drop faster and at a higher rate
The STC Factor (which determines how many STCs are created per kWh of usable battery capacity) will now:
Decrease more often (every 6 months)
Decrease at a higher rate
The table below outline those changes.
| Year | Period | Existing STC Factor | Proposed STC Factor |
|---|---|---|---|
| 2026 | January - April | 8.4 | 8.4 |
| 2026 | May - December | 8.4 | 6.8 |
| 2027 | January - June | 7.4 | 5.7 |
| 2027 | July - December | 7.4 | 5.2 |
| 2028 | January - June | 6.5 | 4.6 |
| 2028 | July - December | 6.5 | 4.1 |
| 2029 | January - June | 5.6 | 3.6 |
| 2029 | July - December | 5.6 | 3.1 |
| 2030 | January - June | 4.7 | 2.6 |
| 2030 | July - December | 4.7 | 2.1 |
Larger batteries will earn fewer STCs per kWh
From 1 May 2026, the STC factor will be applied on a sliding scale based on the usable capacity:
0–14 kWh (inclusive): STC Factor applied at 100%
Above 14 kWh up to 28 kWh (inclusive): STC Factor applied at 60%
Above 28 kWh up to 50 kWh (inclusive): STC Factor applied at 15%
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More Information
For more information about the announcement, click here:
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Tiana Bergmans
Solar Team
03 9805 0719
nathan.upson@greenenergytrading.com.au