NSW Home Battery Incentive 2025: What You Need to Know
From 1 July 2025, the NSW Government introduced a new battery incentive for households and small businesses installing or connecting a solar battery: The Virtual Power Plant (VPP) Incentive. This replaces the previous NSW battery installation rebate, which officially ended on 30 June 2025.
If you’re considering adding a solar battery to your home—or already have one—you may be eligible for up to $1,500 in upfront support by connecting your battery to a VPP. This rebate can be combined with other eligible programs, helping you cut costs and make your battery system pay for itself faster.
This incentive can be combined with the Federal Battery Rebate which offers around 30% off a home battery (worth up to ~$344 per usable kWh).
Key Updates:
- The NSW battery installation rebate ended 30 June 2025
- A new NSW VPP incentive of up to $1,500 is now available
- You may also be eligible for the Federal Battery Rebate
- The two rebates can be combined, but only for new installations from 1 July 2025
For more details, refer to the Energy NSW rebate update and the ministerial media release.
What Is the NSW Virtual Power Plant (VPP) Incentive?
The NSW VPP incentive is an upfront payment from the NSW Government that helps reduce the cost of your solar battery when you connect it to a Virtual Power Plant (VPP).
A Virtual Power Plant is a network of home batteries that work together to supply energy back to the grid when it’s needed most—like during peak demand times. By joining a VPP, you can earn money and help keep the electricity grid stable.
How Much Can You Get?
- The incentive varies by battery size
- For example, a 27 kWh battery could receive up to $1,500
- Smaller systems receive a smaller incentive
Estimated NSW VPP Incentive by Battery Size
| Battery Size (kWh) | Estimated NSW VPP Incentive (AUD) |
| 5 kWh | $275 |
| 7 kWh | $385 |
| 10 kWh | $550 |
| 13.5 kWh | $742.50 |
| 20 kWh | $1,100 |
| 27 kWh | $1,500 (maximum) |
Note: These figures are based on an estimated rate of $55 per usable kilowatt-hour, with a cap of $1,500. Actual payments may vary depending on admin fees charged by your Accredited Certificate Provider (ACP).
Eligibility Criteria for the NSW VPP Incentive
To be eligible for the NSW Virtual Power Plant (VPP) incentive:
- Your battery must be compatible with a VPP
- You must connect through an Accredited Certificate Provider (ACP)
- You must be a NSW homeowner or small business
Good news: Even if you already claimed the NSW battery installation rebate before July 2025, you may still be eligible for this new VPP incentive, as long as your battery meets the technical requirements.
What is the Federal Battery Rebate?
The Cheaper Home Batteries Program is a $2.3 billion initiative from the Australian Government offering upfront discounts for battery installations nationwide.
Federal Rebate Overview:
- Launch Date: 1 July 2025
- Value: Up to $344 per usable kWh (e.g., ~$4,000 for a 13.5 kWh battery)
- Eligibility:
- Battery must be VPP-capable
- Must be installed by a Clean Energy Council (CEC) accredited installer
- System must be paired with new or existing solar PV
- Available to households, small businesses, and community organisations
Note: You can combine the federal rebate with the NSW VPP incentive, but you cannot combine the federal rebate with the now-ended NSW battery installation discount.
Example Savings (Federal Rebate + NSW VPP Incentive)
| Battery Size | Federal Rebate (Est.) | NSW VPP Incentive (Est.) | Total Savings (Est.) |
| 10 kWh | ~$3,440 | ~$400 | ~$3,840 |
| 13.5 kWh | ~$4,644 | ~$600 | ~$5,244 |
| 27 kWh | ~$9,288 | ~$1,500 (max) | ~$10,788 |
Note: NSW VPP incentives may be subject to admin or brokerage fees from your Accredited Certificate Provider (ACP), which can slightly reduce the final amount received..
How to Access the NSW VPP Incentive
If you’re a homeowner in NSW, here’s how to access the Virtual Power Plant (VPP) incentive and reduce your battery costs:
1. Make Sure You’re Eligible
- You must own or live in a home located in NSW
- You need a battery that can connect to a Virtual Power Plant (VPP)
- Your battery must be installed and connected by an Accredited Certificate Provider (ACP) approved by the NSW Government
2. Get Help from an Approved Installer
- Work with an installer who is registered as an ACP
- Ask them to explain how the NSW VPP incentive works and whether your battery is eligible
3. Compare Your Options
- Use the Solar Choice quote comparison tool to see prices and products from trusted local installers near you
- Make sure quotes include the NSW VPP incentive and show how it affects your final price
4. Install Your Battery
- Book the installation with your chosen ACP-approved installer
- Your installer will ensure your battery meets all safety and technical requirements
5. Connect to a Virtual Power Plant
- Your installer or VPP provider will connect your battery using remote software (no hardware changes needed)
- Once connected, your battery can help power the grid and earn you extra savings
6. Receive Your Incentive
- After your battery is connected to a VPP, you’ll receive your NSW Government incentive
- Incentives vary by battery size (up to $1,500) and may have admin fees, so ask your installer what you can expect
Choosing the right installer is key. Always confirm they’re ACP-approved and experienced in helping homeowners access the NSW battery rebate.
How Do Virtual Power Plants (VPPs) Work?
A Virtual Power Plant is a network of connected solar battery systems that work together to supply energy to the grid. Your VPP provider remotely controls your battery’s energy dispatch to support the grid during peak demand. There is no physical change to your system—only a software connection.
Benefits of VPP participation:
- Upfront NSW incentive
- Ongoing revenue from selling stored energy
- Faster payback on battery costs
- Contribution to a more stable and sustainable grid
See more in our Homeowners guide to Virtual Power Plans VPP
Frequently Asked Questions (FAQ)
No. This incentive ended on 30 June 2025 and has been replaced by the federal rebate program.
Yes — you can combine the Federal battery rebate and the NSW VPP incentive, but not the former NSW installation rebate.
Contact your installer or your ACP. For disputes, you may contact NSW Fair Trading or the scheme regulator IPART.
No, but most do. Batteries must meet capacity, safety, warranty, and VPP-compatibility requirements. Confirm eligibility with your installer.
Yes, if your battery is VPP-compatible and you haven’t claimed a previous VPP incentive, you may be eligible for the new higher incentive.
No. Battery installations in NSW are not eligible for both rebates, regardless of timing. If you already received the NSW installation discount before July 2025, you cannot claim the federal rebate for the same battery.
If you install an additional battery after July 1, 2025, you may be eligible for the federal rebate for that new battery, as long as it meets all requirements.
No. The NSW Government has confirmed that batteries cannot receive rebates from both programs. Always verify with official sources or contact the Clean Energy Regulator or NSW Energy for clarification.
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Can you claim the rebate for a second battery.
Hi Colin,
Unfortunately not, the scheme documentation does states that a site with an existing battery is not eligible for this incentive.
Regards,
Solar Choice