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Changes to Battery STC calculations from 1 May 2026
26 January 2026
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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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