The Renewable Energy Legislation Amendment (2026 Measures No. 1) Regulations 2026 introduce three major changes:

1️⃣ Creation of Certificates for Battery-Connected Solar PV Systems (Schedule 1)

From 1 May 2026, new rules apply for calculating the number of Small-scale Technology Certificates (STCs) for battery-connected solar PV systems.

🔹 Key Changes:

• A tiered calculation system based on battery usable capacity (kWh):
  • 0–14 kWh → full factor
  • 14–28 kWh → factor × 0.6
  • 28–50 kWh → factor × 0.15
• Certificates are rounded down to the nearest whole number.
• Maximum battery size eligible: 50 kWh
• A declining certificate factor over time:

📉 This creates a gradual reduction in incentives, similar to the solar STC phase-down model.

Period Factor
May–Dec 2026 6.8
Jan–Jun 2027 5.7
Jul–Dec 2027 5.2
Jan–Jun 2028 4.6
Jul–Dec 2028 4.1
Jan–Jun 2029 3.6
Jul–Dec 2029 3.1
Jan–Jun 2030 2.6
Jul–Dec 2030 2.1

2️⃣ Formalisation of the Cheaper Home Batteries Program (Schedule 2)

The Clean Energy Regulator is now formally empowered to:

• Purchase and surrender Small-scale Technology Certificates
• Or support the Department in doing so
• Specifically for the Cheaper Home Batteries Program

This gives the Regulator a legally prescribed role in delivering the subsidy program.

3️⃣ Updated Renewable Energy Targets for 2026 (Schedule 3)

For 2026:

• Renewable Power Percentage (RPP): 16.67%
• Small-scale Technology Percentage (STP): 11.67%

These adjustments affect how many certificates electricity retailers must surrender.

⚡ Implications for the Cheaper Home Batteries Program (CHBP)

This is where it gets strategically important.

🔹 1. Batteries Now Treated Similar to Solar in STC Framework

Battery systems connected to solar are now integrated into the STC creation framework.

Implication:

• Batteries become a mainstream federal incentive mechanism.
• This increases legitimacy and scale of the Cheaper Home Batteries Program.

🔹 2. Incentive Front-Loading (Install Early = Higher Benefit)

The declining factor from 6.8 (2026) to 2.1 (2030) creates:

• 📈 Strong early-adopter incentive
• 📉 Long-term phase-down

For example:

A 14 kWh battery in 2026: 14 × 6.8 = 95 STCs (approx.)

The same battery in late 2030: 14 × 2.1 = 29 STCs (approx.)

That’s a ~70% reduction in certificate value over time.

Implication: Installers and marketers should push “Install before factor drops” messaging.

🔹 3. Tiered Capacity Design Discourages Oversizing

The reduced multipliers for:

• 14–28 kWh (×0.6)
• 28–50 kWh (×0.15)

Means:

• The first 14 kWh is heavily incentivised.
• Larger batteries receive sharply diminishing certificate value.

Implication:

• Optimal system sizing likely around 10–15 kWh for most households.
• Large 30–50 kWh systems won’t attract proportionate subsidies.
• Encourages residential-scale batteries rather than commercial-scale stacking.

🔹 4. Clean Energy Regulator Buying & Surrendering STCs

Instead of households claiming certificates directly:

The Regulator (or Department) purchases and surrenders STCs.

Implications:

• Program likely structured as an upfront discount
• Simplifies consumer experience
• Reduces administrative burden on homeowners
• Improves cashflow for installers

For marketing: “Federal Battery Discount Applied Upfront.”

🔹 5. Impact on Retailer STP (11.67% in 2026)

Higher STP obligations may:

• Increase STC demand
• Support certificate pricing stability
• Prevent collapse in certificate value

This protects the integrity of the subsidy.

🏠 What This Means for Homeowners

• Federal battery incentives officially embedded in legislation
• Higher subsidy for early installations
• Best financial value likely under 14 kWh
• Incentives reduce progressively until 2030
• Likely structured as point-of-sale discount

🏢 What This Means for Installers & Energy Retailers

• Massive marketing opportunity in 2026–2027
• Clear “use it before it drops” messaging
• Need for capacity optimisation strategy
• System design becomes financially strategic
• Strong alignment with solar + battery bundling

📊 Key Takeaways

This amendment:

• Integrates batteries into the national STC system
• Front-loads incentives
• Discourages excessive battery oversizing
• Strengthens the Cheaper Home Batteries Program administratively
• Creates a predictable phase-down pathway to 2030

It effectively makes 2026–2027 the golden window for battery adoption in Australia.