June 10, 2025. Major Update for NSW Homeowners
The NSW Government has confirmed that its current solar NSW battery rebate offered through the Peak Demand Reduction Scheme (PDRS) will end on 30 June 2025. This rebate cannot be combined with the new Federal Government battery rebate, which launches on 1 July 2025.
From July 1, NSW will instead offer an increased incentive for households that connect their battery to a Virtual Power Plant (VPP) and this new incentive can be stacked with the Federal rebate.
For most homeowners, the message is clear:
- Don’t rush to claim the outgoing state rebate
- Plan for July where better combined benefits await
The NSW Battery Rebate Is Ending And It Can’t Be Combined
On its Energy website, the NSW Government states:
“This NSW battery discount is available for battery installations up until Monday 30 June 2025. It cannot be combined with the Australian Government’s Cheaper Home Batteries Program discount… From Tuesday 1 July 2025, this NSW battery installation discount will no longer be available.”
This confirms:
- The NSW PDRS battery rebate ends 30 June
- It cannot be stacked with the Federal rebate
- From 1 July, a new VPP incentive will replace it and can be combined
The New Battery Rebate Setup from July 2025
| Program | Available from | Value | Requires VPP? | Stackable? |
|---|---|---|---|---|
| Federal Battery Rebate | 1 July 2025 | $372 per usable kWh, up to 50 kWh | No | Yes (with VPP) |
| NSW VPP Incentive | 1 July 2025 | Increased nearly doubled | Yes | Yes |
| NSW PDRS Rebate | Ends 30 June 2025 | ~$1,000–$2,400 | Yes | No |
Why the PDRS Rebate Is No Longer Worth Claiming
While the PDRS rebate is technically still available until 30 June, it’s no longer the right path for most households. Here’s why:
- It can’t be stacked with the Federal rebate
- The Federal rebate offers more value up to $18,600 for large batteries
- A better stackable option becomes available from July 1
Waiting just a few weeks allows homeowners to claim both state and federal support something not possible under the current scheme.
What’s the New VPP Incentive Worth?
The NSW Government has confirmed that from 1 July 2025, the incentive for joining a VPP will almost double.
For example, a 27 kWh battery will receive around $1,500, up from around $800 previously.
This incentive is in addition to the Federal rebate, which would offer:
- $372 × 27 kWh = $10,044 (before admin fees)
Together, these could provide over $11,500 in total value a significant improvement over any current rebate.
A full breakdown will be covered in our next article: “NSW VPP Incentives Are Doubling from July 1.”
A Quick Look at the PDRS
The Peak Demand Reduction Scheme (PDRS) was introduced in 2022 to support battery uptake by offering upfront discounts. It worked via Peak Reduction Certificates (PRCs), and eligibility was tied to VPP participation.
While it helped many households early on, the scheme is now being replaced by a more flexible, performance-based approach.
What Should Homeowners Do Now?
- Wait until July 1 if you can
- Stacking the Federal rebate with the new NSW VPP incentive offers more value than the outgoing PDRS scheme.
- Check your eligibility
- The Federal rebate applies to low-income, medically vulnerable, or energy-stressed households and can be claimed for batteries up to 50 kWh usable capacity.
- Plan for VPP participation
- To stack both rebates, your battery must be part of a Virtual Power Plant.
Need Help Navigating Your Rebate Options?
We can help you:
- Confirm whether you’re eligible for the Federal rebate
- Compare VPP-compatible installers
- Understand how much you could receive
Get personalized quotes and rebate support today.
Final Word
- NSW’s PDRS battery rebate ends on 30 June 2025
- From 1 July, homeowners can stack the Federal rebate with a boosted VPP incentive
- For most households, waiting until July is the smarter move both in terms of financial return and flexibility
For more info you can read battery rebate guide
