NSW Solar Battery Rebate Explained (2025 Update)

Good news for NSW homeowners: there are incentives available that can take a nice chunk off the cost of a home battery. In New South Wales, the key program right now is an upfront discount delivered through the Peak Demand Reduction Scheme (PDRS). It’s not a traditional rebate where you claim money back from the government; instead, accredited installers apply a discount to your quote for installing a battery, and then they recoup that through the scheme.

How the NSW Battery Incentive Works

Under the NSW scheme, you can get roughly $200 – $400 off per kWh of battery storage installed. The exact discount can vary depending on the installer and the specifics, but as a guideline, a larger battery gets a larger total discount. For example, a big 10 kWh battery could see up to around $3,000 – $4,000 off the cost. This isn’t a set-in-stone figure, but it gives you an idea. The incentive is tied to the battery’s capacity because the goal is to reduce peak demand on the grid (more battery storage = more ability to take a home off grid during peak times).

Unlike a rebate you apply for after purchase, this NSW incentive comes off the price at the point of sale. You need to go through an installer who is participating in the scheme (these installers work with what are called Accredited Certificate Providers under the PDRS). Essentially, the installer handles the paperwork and gives you the discount upfront, which is a lot less hassle for you.

One thing to note: because this is handled by installers and their affiliate providers, the discount might differ slightly between quotes. It pays to use an installer who is well-versed in the scheme (we certainly are) to ensure you maximize your discount. The scheme only applies to new installations (not retroactive for existing batteries) and you must either already have solar or be installing solar with the battery.

Additional $$$ for Joining a VPP

On top of the base discount, the NSW government has offered extra incentives if you connect your battery to a Virtual Power Plant (VPP) for a certain period. A VPP is basically a network of connected home batteries that can discharge to support the grid at critical times (you usually get paid or rewarded for any power you supply). NSW has offered an additional $200 to $400 for people who sign up their battery to an approved VPP program for at least 5 years. This is optional, you don’t have to join a VPP, but it’s a nice little bonus if you were open to the idea anyway. And some VPP programs guarantee you savings or payments in return, essentially giving you double benefits.

Eligibility in a Nutshell

• You must be a resident of NSW (tick, if you’re reading this from Sydney!). Businesses in NSW can also participate, so it’s not just homeowners, small businesses are eligible too.
• You need to have an existing solar system or be installing one alongside the battery. The scheme is about enhancing solar with storage, not standalone batteries without solar.
• The battery system has to be an approved model and installed by an accredited installer who is part of the program. Thankfully, most major battery brands (Tesla, BYD, LG, etc.) are approved, and plenty of reputable installers (like Solar Repair Sydney) are participating.
• There’s a nominal requirement that the battery must be between 5 kWh and 30 kWh in capacity for the incentive (most home batteries fall in this range anyway). And currently, each property can claim the incentive only once (so you can’t split install two smaller batteries at different times to get two incentives… we’d have to do it in one go).

It’s also worth noting the NSW incentive is not means-tested – it doesn’t matter what your income is, unlike some other programs. The aim is to encourage as many people as possible to add storage, to help the grid and reduce the need for new power stations down the line.

How to Claim the NSW Battery Discount

As mentioned, you don’t personally have to file any government paperwork. The key is to work with an installer who will do it for you and include the discount in the quote. Here’s how it generally goes:

1. Find an accredited installer (hint: hi, that’s us). We’ll confirm your situation qualifies (almost all NSW solar homes do).
2. Quote with discount applied. We’ll calculate the expected incentive based on your chosen battery size and let you know how much it is. This will be clearly shown in your quote as an “NSW Battery Scheme Discount” or similar.
3. Paperwork and installation. If you proceed, we’ll have a small form for you to sign (basically saying you agree to partake in the scheme and aren’t claiming it elsewhere), and then we handle the rest behind the scenes. We install your battery, commission it, and ensure all standards are met.
4. You enjoy a lower price upfront! The discount is baked in, so you pay the net cost (plus you still get any federal STC solar credits if you’re installing solar too, those apply separately).

After installation, you might get a confirmation letter or email from the scheme administrators, but otherwise it’s pretty hands-off for you.

NSW Battery Rebates vs Loans (historical context)

You might have heard of past NSW programs like the Empowering Homes trial, which offered interest-free loans for batteries. That program was a pilot and is no longer taking new applicants. The current incentive under the PDRS has effectively replaced it, and many would argue a discount is more enticing than a loan, since you don’t have to pay it back! There’s also the federal solar battery scheme kicking in soon, and yes – you should be able to use both together, potentially.

In summary, if you’re in Sydney or anywhere in NSW and on the fence about a battery, the state incentives definitely tilt the equation by a good margin. We’ve seen clients save a few thousand dollars instantly via this program. It’s a great time to take advantage while it’s available (the scheme will run for a while, but the sooner you save, the better).

Have questions about the NSW battery incentive? We’re happy to explain it in more detail and provide a personalized quote showing the savings. It’s all about making cleaner, cheaper energy more accessible. Get in touch with Solar Repair Sydney for an obligation free quote, and let’s see how much you can save on a shiny new battery!