The Queensland Competition Authority confirmed in its final determination, published on 5 June 2026, that Ergon’s regional feed-in tariff drops from 8.66 c/kWh to 6.153 c/kWh on 1 July 2026. That is a 29% cut to the rate Mackay homes get paid for exporting excess solar back to the grid. At the same time, the federal STC rebate gets smaller again on 1 January 2027 (deeming period drops from 5 to 4 years), and the federal battery rebate steps down every six months from 1 May 2026.
If you are a Mackay homeowner sitting on a quote, you are right to ask: install now, or wait? Here is the honest answer with the numbers.
Next Phase Solar is an SAA accredited installer based in Mackay, and this tariff change lands on our customers’ bills, not on a spreadsheet somewhere. Ring (07) 4957 3511 if you want it worked out on your own usage.
What is actually changing on 1 July 2026
Two things matter for Mackay:
- Ergon residential feed-in tariff drops from 8.66 c/kWh to 6.153 c/kWh (a 29% cut). This is set by the QCA, not Ergon, and applies to eligible regional Queensland customers on the standard contract.
- Tariff 11 usage rate is expected to soften slightly in QCA’s draft, but it stays around 32 c/kWh.
The gap between what you pay (around 32 c/kWh) and what you get paid for export (6.153 c/kWh) widens to roughly 26 cents. That gap is what makes self-consumption (and batteries) so much more valuable from July 2026 onwards.
The federal STC rebate is also winding down
In 2026 a Mackay home (Zone 3, factor 1.382, deeming 5 years, STC price approximately $38) gets roughly the discounts below. From 1 January 2027 the deeming period drops to 4 years, and the same systems receive less:
| System size | Rebate in 2026 | Rebate from 1 January 2027 | Loss if you wait |
|---|---|---|---|
| 6.6 kW | ~$1,700 off | ~$1,400 off | about $300 |
| 10 kW | ~$2,600 off | ~$2,100 off | about $500 |
| 13 kW | ~$3,400 off | ~$2,700 off | about $700 |
So should you install before or after 1 July 2026?
The short version: for almost every Mackay homeowner, installing in the first half of 2026 (before 1 July) gives a better dollar outcome than waiting. If you are starting from scratch, our residential solar page covers what a new install involves.
Reasons to install BEFORE 1 July 2026
You lock in the 8.66 c/kWh feed-in tariff for the rest of the 2025-26 financial year. Four to six months of higher exports help payback in year one.
STC rebate is still at 2026 levels until 31 December. Installing in February versus February of the next year means a bigger upfront discount.
Battery rebate is at its highest until 30 April 2026. Under DCCEEW’s Cheaper Home Batteries Program, the STC Factor for batteries is 8.4 STCs per kWh before 1 May 2026 (around $319 per usable kWh at an STC price of $38), dropping to 6.8 STCs per kWh from 1 May 2026 (around $258 per usable kWh at the same STC price), with a new tiered structure applied at 100% for the first 14 kWh, 60% for 14 to 28 kWh, and 15% for 28 to 50 kWh.
You start saving on bills immediately. Every quarter you delay is a quarter of Ergon Tariff 11 bills you pay in full.
Reasons it does NOT actually matter much
If you size your system right and design for self-consumption (most of your power used during the day, or paired with a battery), the feed-in tariff drop hurts you less than you think. A well-sized 10 kW system on a Mackay family home with a battery will self-consume 60 to 80% of its output. The export portion is the smaller half of the equation.
A real Mackay example
Take a four bedroom home in Andergrove using around 24 kWh a day, with an annual power bill near $2,200. Here is the same 10 kW system installed at three different times:
| Scenario | Install timing | Net cost after STC rebate | Year one savings | Simple payback |
|---|---|---|---|---|
| A | June 2026, before the changes | Roughly $9,500 to $11,500 installed | Around $2,000 from self-consumption, plus $300 to $400 from export at 8.66 c/kWh until 30 June 2026 | 4 to 5 years |
| B | November 2026 | STC rebate still at 2026 levels, similar net cost | Around $2,000 from self-consumption, plus around $220 from export, entirely at 6.153 c/kWh from day one | 4.5 to 5.5 years |
| C | February 2027 | Roughly $570 higher, with deeming dropped to 4 years | Same self-consumption, export at 6.153 c/kWh, and roughly $2,200 already paid in full Ergon bills while waiting | Worsens by 6 to 9 months |
What about adding a battery?
The federal Cheaper Home Batteries rebate makes batteries much more attractive in 2026. A 10 kWh battery installed in April 2026 attracts roughly $3,190 off (at 8.4 STCs/kWh, STC price near $38). The same 10 kWh battery installed in June 2026 attracts approximately $2,580 (at 6.8 STCs/kWh). The same battery installed in January 2027 will be lower again as the STC Factor steps down every six months under the changes that took effect 1 May 2026.
If your design includes a battery, the urgency is even higher. Installing the solar plus battery package before 1 May 2026 captures the highest rebate tier on the battery side and the higher feed-in tariff on any temporary excess export. See our home batteries page and our Queensland battery rebate guide for the detail.
Bottom line for Mackay homeowners
Install solar before 1 July 2026 if you can. Install solar plus battery before 1 May 2026 if you are going down that path. If life gets in the way and you install in late 2026 or 2027, you are still going to save money. You just lose the easy first year wins.
Next Phase Solar runs honest assessments based on your actual Ergon bills, your roof, and your routine. Book a free solar assessment at /quote and we will model the numbers for your address in Bucasia, Andergrove, Slade Point, Sarina or anywhere across the Mackay region.
Frequently asked questions
What is the Ergon feed-in tariff in regional Queensland right now?
For the 2025-26 year, until 30 June 2026, the regional Queensland feed-in tariff is 8.66 c/kWh. From 1 July 2026 it drops to 6.153 c/kWh, confirmed by the Queensland Competition Authority on 5 June 2026. The QCA sets this rate each year and your electricity retailer pays it.
Why is the Queensland feed-in tariff dropping?
So much rooftop solar now exports to the grid in the middle of the day that daytime export energy is worth less on the wholesale market. The QCA prices the feed-in tariff off that value, so the rate falls. The 2026-27 cut is about 29%.
Is solar still worth it in Mackay with a lower feed-in tariff?
Yes. Most of the savings come from self-consumption, not export. With Ergon usage rates around 32 c/kWh and export at 6.153 c/kWh from July 2026, a kWh you use yourself is worth far more than one you sell back. A system sized for daytime use, or paired with a battery, still pays back in roughly 4 to 6 years for most Mackay homes.
How much is the federal battery rebate in 2026?
Under the federal Cheaper Home Batteries Program, eligible batteries receive about 6.8 STCs per usable kWh from 1 May 2026, roughly $250 to $260 per usable kWh at current STC prices. It applies at 100% for the first 14 kWh of usable capacity, 60% from 14 to 28 kWh, and 15% from 28 to 50 kWh. The program runs to 2030.
Should I install solar before 1 July 2026?
If you can, yes. Installing before 1 July locks in the higher 8.66 c/kWh feed-in tariff for the rest of the 2025-26 year and starts cutting your Ergon bills sooner. If you install later, a properly sized system still saves money. You just miss the easy first-year export wins.
Who sets the Queensland feed-in tariff?
The Queensland Competition Authority, an independent body, sets the regional Queensland feed-in tariff each financial year for customers in the Ergon network. Ergon does not set it and your retailer pays it. South-east Queensland, the Energex area, works differently, with retailers setting their own rates in a competitive market.
Sources
- Queensland Competition Authority, Regional Queensland feed-in tariff 2026-27 final determination, 5 June 2026: qca.org.au
- Australian Government DCCEEW, Cheaper Home Batteries Program: dcceew.gov.au
- Australian Government, Small-scale Renewable Energy Scheme (STCs): energy.gov.au
Last reviewed June 2026. Feed-in tariff and rebate figures change over time. We confirm the current rates with the QCA and your retailer at the time of quoting.
