NSW Home Battery
Rebate Guide 2025

Table of Contents

Everything You Need to Know About Battery Incentives in New South Wales

If you’re a homeowner in NSW thinking about installing a household battery, 2025 is shaping up to be a turning point. The original NSW Solar Battery Rebate, offered through the Peak Demand Reduction Scheme (PDRS), is being phased out. In its place, a more generous and flexible incentive is available through the Virtual Power Plant (VPP) program one that can also be stacked with the Federal Government’s Cheaper Home Batteries Program.
 
This guide will help you understand:
  • What rebates and incentives are currently available
  • How the NSW Government is shifting its support model
  • Who qualifies and how much you could receive
  • How VPPs work and what role they play
  • Whether you can combine state and federal support
  • What to expect when installing battery storage in 2025

Let’s start with what’s changed.

NSW Home Battery Rebate 2025

What Happened to the NSW Battery Rebate?

The NSW battery rebate has existed since 2021 under the Peak Demand Reduction Scheme (PDRS). It offered homeowners a modest upfront installation rebate typically between $400 and $600 for eligible battery systems.

However, as of June 2025, the NSW Government has confirmed this rebate cannot be combined with the Federal Solar Battery Rebate under the new national program. That means homeowners must now choose between the two and most are opting for the federal rebate, which offers far more support: $372 per usable kilowatt-hour, for batteries up to 50 kWh in size.
Although technically available until 30 June, many installers have already moved on. New battery quotes are no longer promoting the NSW battery installation rebate, and focus has shifted to VPP-based incentives that can be stacked with the federal scheme.

NSW’s New Battery Incentive: Connect to a VPP

Instead of continuing with a direct solar battery rebate, the NSW Government has redirected its support toward Virtual Power Plants (VPPs)  networks of connected batteries that help stabilise the grid during times of high demand.
 
From 1 July 2025, the NSW VPP Rebate will almost double, offering:
  • Up to $550 for a 10 kWh system
  • Up to $1,500 for a 27 kWh system
These are upfront incentives managed by your chosen VPP provider. The size of the payment depends on your battery’s usable capacity and your provider’s specific offer.
 
Unlike the outgoing NSW Solar Battery Rebate, this new model:
  • Rewards households for grid participation
  • Can be combined with the Federal Government’s Cheaper Home Batteries Program
  • Aligns with how home battery systems are being integrated into Australia’s energy future

How Much Can You Get in 2025?

From 1 July, homeowners who install eligible batteries and connect to a VPP may qualify for the following:
Battery Size (Usable Capacity) NSW VPP Incentive
10 kWh Up to $550
27 kWh Up to $1,500

These incentives are paid directly by the VPP provider and may appear as:

  • A cash payment
  • A discount at the time you install the battery
  • A credit on your power bill

How much you actually receive depends on:

  • The Solar Installer you choose
  • The terms of your VPP contract
  • Your battery’s participation in the grid

Who’s Eligible for
the NSW VPP Rebate?

To receive the NSW Battery Incentive through a Virtual Power Plant

You must:

  • Be a resident of NSW
  • Install a grid-connected battery system (not off-grid)
  • Use a battery with usable capacity between 2 kWh and 28 kWh
  • Connect to a participating VPP provider
  • Sign a VPP agreement and nomination form

You’re not eligible if:

  • You’ve already received the VPP incentive between 1 Nov 2024 and 30 June 2025
  • Your battery isn’t VPP-compatible
  • You are off-grid or don’t have a National Metering Identifier (NMI)

🟡 Important Note: The Federal Solar Battery Rebate only applies to batteries with at least 5 kWh usable capacity so if your system is between 2–4 kWh, you’ll only qualify for the NSW VPP incentive, not the federal one.

Can You Combine the NSW and Federal Rebates?

Yes and this is a major shift. Unlike the old NSW Solar Battery Rebate, which conflicted with the federal scheme, the NSW VPP Rebate can be stacked with the Federal Government’s Cheaper Home Batteries Program. For example: If you install a 27 kWh battery:
  • Federal rebate: 27 × $372 = $10,044
  • NSW VPP incentive: Up to $1,500
  • Total value: Up to $11,544 in combined support
This stacking makes NSW one of the best places in Australia for investing in a national solar battery setup.

How You’ll Receive the VPP Incentive

Unlike typical government rebates, the VPP incentive is delivered and managed by your Virtual Power Plant provider, not directly by the state or installer. Here’s how it works:

Choose a VPP Provider

  • Compare offers from providers like AGL, Origin, Amber, Powow, Shinehub, Globird and Engie
  • Each has different contracts, payout structures, and battery compatibility

Sign a VPP Contract and Nomination Form

You authorize the provider to manage your participation and deliver your incentive

Complete Onboarding

This may include a cooling-off period and online verification

Receive Your Incentive

Paid via cash, discount, or bill credit depending on the agreement
Note: Some VPPs require you to change electricity retailers. Check this before signing.

Important Conditions to Know

Before you join a VPP, understand the fine print:

battery rebate guide showing warning symbol for rebate conditions including installer approval, VPP readiness, and admin fees in 2025

VPP Access Terms Vary

Providers differ on how much of your battery they can access, when, and how often

Retailer Switching May Be Required

Not all VPP providers work with all retailers some may ask you to switch

Not All Batteries Are Compatible

Always check that your battery model supports VPP integration

One Incentive Per Property

The NSW VPP incentive is limited to one claim per NMI (meter)

How Much Can You Actually Save?

Let’s break down the savings for a real-world system:
Example: 27 kWh Usable Capacity Battery
  • Federal rebate: 27 × $372 = $10,044
  • NSW VPP incentive: Up to $1,500
  • Total Combined Support: $11,544
This could reduce your battery system cost by 30–50% depending on your quote. Over time, VPP participation also lets you earn additional income by selling stored solar energy to the grid creating faster payback on your investment.

We Have Great Answers

Ask Us Anything

Only until 30 June 2025 and only if you don’t also claim the federal rebate.

A rebate reduces your upfront purchase cost. An incentive is a reward or payment for participating in a program like a VPP.

Yes, if your battery is compatible and you haven’t already claimed the NSW VPP incentive.

It no longer offers direct discounts. Instead, the state supports upfront VPP participation incentives.

It provides $372 per usable kilowatt-hour for eligible batteries 5 kWh and above uncapped to 50 kWh.

Yes. You’ll need existing solar panels or install them alongside the battery. VPP participation often assumes you’re storing solar excess.

Most eligible batteries must be between 2–28 kWh usable capacity and approved for VPP participation.

What This Means for You

The NSW Government has shifted from a modest, fixed NSW battery rebate to a smarter, more flexible incentive model. While the PDRS rebate is sunsetting, the new NSW Battery Incentive  in the form of a VPP bonus offers stronger long-term value and can be stacked with the national solar battery rebate.
If you’re planning to install the battery in 2025:
  • Choose an eligible battery
  • Confirm VPP compatibility
  • Compare providers and get quotes from a trusted solar installer
With the right setup, you could access over $11,000 in support and start earning from your battery while helping power a more stable, cleaner grid for NSW.

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Let’s Start with the Basics

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Every Home is Different

Final battery pricing depends on things like your existing solar setup, switchboard, and household usage.
That’s why we don’t give out generic pricing —instead, we connect you with certified professionals who will recommend the best solution for your home.

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