NSW Solar Battery Rebates

LAST UPDATED 3rd JULY 2025

NSW Battery Rebate Update: What’s Available from July 2025

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 new Federal Battery Rebate, which covers up to 30% of your battery install cost — making now an excellent time to explore your options.

NSW VPP Incentive (2025)

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
One claim per electricity meter (NMI)

Incentive Amounts

Approx. $550 for a 10 kWh battery
Approx. $1,500 for a 27 kWh battery
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 total saving of $4,000–$5,000, depending on battery size and system setup.

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.