There’s no longer a NSW Government discount for installing a home battery, but you can still get help with the cost. Here’s what’s available in NSW, who it’s for and how to claim it.
At a glance
- No NSW install discount since 1 Jul 2025
- The federal battery discount steps down on 1 Jan 2027
- NSW pays an extra incentive if you join a VPP
- Zero-interest loans of up to $15,000 for eligible homeowners
What you can get in NSW today
| Incentive | Who it’s for | What you get |
|---|---|---|
| Federal Cheaper Home Batteries Program | Homes and small businesses | An upfront discount on a new battery, based on its size |
| NSW Virtual Power Plant (VPP) incentive | Battery owners who join a VPP | An upfront payment or bill credit, which varies by provider |
| NSW Home Energy Saver loan | Homeowners and landlords (household income up to $150,000 a year) | A zero-interest loan of up to $15,000 |
| NSW Home Energy Saver discount | Lower-income households (coming soon) | A discount of up to $4,000 on energy upgrades |
| NSW batteries for apartment buildings incentive | Apartment buildings with 4+ units | An indicative 20% to 40% off a shared battery |
Federal Cheaper Home Batteries Program
The Australian Government’s Cheaper Home Batteries Program takes an upfront discount off the price of a new battery. Your installer applies it to your quote.
- The discount is based on the battery’s usable capacity. Full support applies up to 14 kWh, and it tapers off for larger batteries up to 50 kWh.
- The discount steps down every six months. As a guide, it’s worth around $265 per usable kWh until 31 Dec 2026, and around $222 per usable kWh from 1 Jan 2027.
- The battery must be able to join a VPP, but joining one is optional.
Find out more about the federal battery discount
NSW Virtual Power Plant (VPP) incentive
The NSW Government pays an upfront incentive when you connect a battery to a virtual power plant. You can claim it on top of the federal discount.
- Eligibility: households and small businesses with a battery from 2 kWh up to 50 kWh. You don’t need solar panels.
- Amount: this depends on how much battery capacity you make available to the grid (up to 28 kWh) and on the VPP provider and contract you choose. The NSW Government doesn’t set a fixed amount, so compare offers.
- Payment: it can be paid upfront, in instalments or as credit on your power bill.
- Limit: one claim per electricity meter.
- How to claim: choose a VPP provider that offers the incentive. You may need to switch electricity retailer.
Learn how VPPs work | NSW VPP incentive
NSW Home Energy Saver
Home Energy Saver helps eligible NSW households with the upfront cost of upgrades like solar and batteries.
- Zero-interest loans (open now): up to $15,000 for homeowners and landlords with a combined taxable household income of up to $150,000 a year.
- Discounts (coming soon): up to $4,000 for homeowners and renters with a combined gross household income of up to $80,000 a year, or an eligible concession card.
- Combining: The loan can be used alongside other incentives, such as the federal battery discount, which are taken off the price first.
- Solar requirement: To use the loan for a battery, your home must also have solar.
If you’re eligible for both, the NSW Government recommends applying for the discount first.
Batteries for apartment buildings
Since 1 Sep 2026, NSW apartment buildings with at least 4 units can get a discount on a shared battery.
- The battery must be between 20 kWh and 200 kWh of usable capacity, installed outdoors.
- The NSW Government says the discount is indicatively about 30% to 40% when installed with new solar, or about 20% to 30% for a battery only.
- The discount is applied to your installer’s quote.
Batteries for apartment buildings
No longer available
The NSW battery installation discount under the Peak Demand Reduction Scheme (previously $1,600 to $2,400) closed on 1 Jul 2025 for homes and businesses. If an installer says you can claim both the NSW and federal installation discounts on a new battery, that’s not correct.
Example: a 10 kWh battery in Sydney
An example only, based on the incentives available in November 2026.
- Federal discount: around $2,650 if installed by 31 Dec 2026, or around $2,220 from 1 Jan 2027.
- NSW VPP incentive: varies by provider, so compare offers.
- Home Energy Saver loan: if eligible, you could spread the remaining cost over a zero-interest loan.
Your installer will confirm the exact discount in your quote.
FAQs
Can I combine the federal discount and the NSW VPP incentive?
Yes. They’re separate programs, and you can claim both.
Do I need solar to get the NSW VPP incentive?
No. Since 1 Jul 2026, batteries without solar are eligible.
I already have a battery. Can I still claim the VPP incentive?
Yes, if your battery is eligible and you join a VPP offering the incentive.
Can I add a second battery?
Possibly. Added battery capacity can be eligible for the federal discount. Ask your installer.
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