NSW Battery Rebate Update: What’s Available in 2026
Thinking of installing a battery in New South Wales? While the standalone battery rebate has ended, there’s still valuable support available — especially if you’re open to joining a Virtual Power Plant (VPP).
What’s Still Available in NSW?
From 1 July 2025, the NSW Government is no longer offering its direct battery installation rebate under the Peak Demand Reduction Scheme (PDRS). However, households and small businesses can still unlock generous upfront incentives for joining a VPP with a compatible battery system.
This state-based incentive can be combined with the Federal Battery Rebate, a nationwide discount on your battery cost that is tiered by battery size, with the best value for systems up to 14kWh. Now is an excellent time to explore your options.
NSW VPP Incentive
Here’s how the NSW VPP incentive works:
Eligibility
- Install a battery that can connect to a VPP
- Use a PDRS-approved provider
- Available to homeowners and small businesses
- Battery size from 2kWh up to 50kWh (the incentive is capped at 28kWh)
- No solar system required
- One claim per electricity meter (NMI)
Incentive Amounts
- The amount depends on your battery size, location and the market price of the certificates, and is usually in the order of $1,000 to $1,500 for common home battery sizes
- Paid upfront, no need to wait years
- May be delivered via a quote discount, instalments, or bill credits
This can be stacked with the Federal Battery Rebate, giving eligible households a combined saving that varies with battery size and system setup. As a guide, a typical 10kWh to 13.5kWh battery could see roughly $3,500 to $5,000 in combined incentives.
What’s No Longer Available?
The NSW battery installation rebate (previously worth $1,600–$2,400) ended on 30 June 2025.
It cannot be claimed alongside the federal rebate.
NSW is now focusing entirely on VPP participation to support grid reliability and energy sharing during peak times.
Why Join a Virtual Power Plant?
VPPs let your battery work smarter. They allow you to share stored energy with the grid during high-demand periods — and you get paid upfront for helping out.
In the past, only a small portion of NSW battery owners joined a VPP. But with these new upfront incentives, VPPs are becoming more popular, and more financially rewarding.
For Homes and Small Businesses
Whether you’re a homeowner or run a small business — like a café, shop, or office — you may be eligible for this incentive. It’s an ideal time to compare options, check eligibility, and see how much you could save.
Stack the Savings
Install a battery through a participating provider, join a VPP, and you could unlock:
A discount via the Federal Battery Rebate (tiered by battery size, best value up to 14kWh)
Typically around $1,000 to $1,500 upfront from the NSW VPP incentive
Ongoing bill savings by storing and using your own solar energy
Ready to Explore Your Options?
Get free quotes from approved solar battery installers in NSW.
We’ll match you with qualified providers who can:
Confirm your eligibility
Recommend a VPP-ready system
Help you claim both available rebates
Get your 3 no obligation free solar & battery quotes so you know where you stand.
Register For NSW Battery Rebate Alerts
Want to know when things are changing? Complete this form and we’ll alert you about NSW battery rebates:
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