How To Get NSW’s Solar Battery “Rebate”
Last Updated: 10th Jun 2025
UPDATE JUNE 10th 2025: The NSW Battery rebate is officially ending June 30th, 2025. But from this point on, it only makes sense to use the federal battery rebate, which will be available from July 1, 2025. The NSW page on their rebate is here. There will continue to be a payment for joining a VPP, but instead of two separate payments, from July 1, it will be changed to a single larger payment when a VPP is first joined. The NSW page on the VPP payment is here.
The NSW battery rebate was introduced in November 2024 and was meant to run for years. But, just before noon on June 10th, the state government announced the scheme was ending on June 30th. From July 1st, only the federal battery rebate will be available in NSW.
The good news is batteries can still pay for themselves in NSW with only the federal battery rebate. If you have arranged to get a battery installed with the expectation of receiving both the federal and NSW battery rebates, it can still be worthwhile even without the NSW state incentive. The amount of the NSW rebate could vary, but was roughly $150 per kilowatt-hour (kWh) of usable storage, so losing it will add around $1,500 to the cost of a 10kWh battery.
If you have arranged a battery installation and don’t want to go ahead, you should contact your installer. But because the federal battery rebate will fall by around 17% at the end of the year, I would recommend going ahead anyway — provided it’s within your budget and won’t cause you financial hardship.
It will still be possible to receive a NSW state payment for joining a VPP. This can be combined with the federal battery rebate. From July 1, 2025, it will consist of a single payment of around $55 per kWh for batteries with 2-28kWh of capacity. For more details, skip down to “The VPP Incentive” subheading.
How Does The Incentive Work?
Due to changes made to the scheme by the NSW government on June 10th, 2025, it no longer makes sense to use the NSW battery incentive. Instead, it makes far more sense to use the considerably more generous federal battery subsidy that will be available from July 1, 2025. But if you’re a bit of a nutter and want to use the scheme before it ends on June 30, here’s how it works:
The initiative ties in with the state’s Peak Demand Reduction Scheme (PDRS). It involves installing approved equipment under the oversight of approved companies, who then create approved certificates, which are the incentive’s basis.
Approved companies are called Accredited Certificate Suppliers (ACPs), with whom installers will need to work. The PDRS certificates (PRCs) are tradeable, with values changing according to market conditions. After any administration fees, the total value of these certificates is offered as an up-front discount to the battery purchaser. So, while technically not a rebate, the term has stuck.
Extra certificates will be issued when the battery is connected to an approved Virtual Power Plant (VPP).
How Much Is The Battery Rebate?
The incentive will vary based on several elements:
- As mentioned, PRC value – which has ranged from around $1 – $2.60 in the past year:
- The usable capacity of the battery.
- Who your distributed network service provider (DNSP) is.
- Whether the battery will be connected to a VPP, which is optional.
PRC prices can head up or down. You can track PRC prices on Demand Manager.
Calculating the potential rebate value manually requires some mental gymnastics, but SolarQuotes has made it super-easy with our new NSW solar battery rebate calculator. Just enter your postcode, select the battery you’re considering, and you’re set.
Here’s an example of results, using the calculator.
When installed in postcode 2000, a Tesla Powerwall 3 (13.5 kWh usable capacity) is eligible for 1,077 PRCs. Based on $2.00 per PRC and the full value going to the purchaser, the base rebate amount is $2,154. But if the battery is also connected to a Virtual Power Plant, it attracts an additional 163 PRCs, boosting the subsidy by $326 to $2,480 in total.
Note:
- If you already have a battery, you are not eligible for any “retrospective” PRCs, but may be eligible for VPP PRCs if you join a virtual power plant program (see below).
- If you have an existing battery and want to buy a new one, you are also not eligible for any PRCs for the new battery purchase. But you should be eligible for PRCs for the VPP for the first battery only.
- If you buy several new batteries where the collective capacity is 28 kWh or less, you are entitled to both the purchase PRCs and the VPP PRCs.
- If you go over 28 kWh total capacity, you get neither the purchase PRCs nor the VPP PRCs.
Which Home Batteries Are Eligible?
As well as being on the Clean Energy Council’s approved battery list, batteries must also meet the following criteria:
- Usable capacity of 2-28kWh (as noted by the CEC).
- Warranty of at least 10 years, with at least 70% of the battery’s usable capacity remaining at year 10.
- The system must be installed at the site.
- Minimum warranted ambient temperature range of -10 °C to 50 °C.
- Minimum warranted cumulative energy throughput equivalent to 2.8 MWh per kWh of useable capacity.
- Be internet connectable and controllable by a Demand Response Aggregator (e.g. a VPP operator).
The VPP incentive
Batteries with storage capacities of between 2 and 28 kWh are eligible for the VPP incentive.
When the NSW battery incentive started, there were 2 separate payments for joining a VPP. One when joining and another after 3 years. But from July 1, 2025, there will be a single payment of approximately $55 per kWh. The NSW government page on their VPP incentive gives the following approximate amounts:
- around $550 for a 10kWh battery
- around $1,500 for a 27kWh battery
Batteries will need to be between 2-28kWh to receive the VPP incentive and they will need to be connected to a solar system.
People who live off-grid can’t join a VPP and so won’t be able to receive the incentive.
Previously, existing batteries could receive the incentive when they joined a VPP, but they had to have 6+ years remaining on their warranty. This is no longer mentioned, so after July 1, it may no longer be a requirement. This would mean any existing battery that can join a VPP could use the incentive.
For owners of existing batteries, they’ll need to use an ACP to assess eligibility and perform the sign up to a Virtual Power Plant. But if the company that installed the system works with an ACP, they may be able to assist there.
Next Steps – Start Now
If you are looking to get a home battery in NSW, simply request a battery quote. We’ll then match you to up to 3 trusted installers servicing your area who will provide you with a detailed obligation-free quote for a system that best suits your needs and circumstances – or based on the battery you’ve selected – along with rebate details.
If you need more information to determine if a home energy storage is right for you, check out our detailed guides to understanding, buying and owning a solar battery, and also our guide to Virtual Power Plants.