Solar rebates and incentives available in NSW

The short version

In NSW there are three main incentives you can stack together: a federal discount on solar panels, a federal discount on home batteries, and a NSW incentive for connecting your battery to a virtual power plant (VPP). None of them are cash handouts you apply for yourself. Your installer claims them on your behalf and takes the value off your quote.

1. The federal solar panel discount (STCs)

Under the federal Small-scale Renewable Energy Scheme, eligible solar systems create Small-scale Technology Certificates, or STCs. Your installer takes the value of those certificates off your price at the point of sale.

How much you get depends on the size of your system, where you live and the current market price of certificates. The scheme steps down every year until it finishes at the end of 2030, so the discount gets a little smaller each year.

To qualify, your system needs to be designed and installed by an accredited installer using approved panels and inverters.

2. The federal Cheaper Home Batteries Program

Since mid-2025 the federal government has offered a point-of-sale discount on eligible home batteries through the Cheaper Home Batteries Program. It works a lot like the solar discount: the battery creates certificates and your installer takes the value off your invoice.

A few things worth knowing:

• There's no income test. Homes, small businesses and community organisations can all be eligible.
• You can add a battery to an existing solar system and still claim it.
• The discount is based on the battery's usable capacity, and larger batteries receive less per kilowatt-hour above certain sizes.
• The value now steps down every six months, so the discount is highest the sooner you install.

3. The NSW VPP incentive (PDRS)

NSW used to offer its own flat battery rebate, but that was paused for most households once the federal program started. What remains is an incentive under the NSW Peak Demand Reduction Scheme for connecting your battery to a virtual power plant.

A VPP lets an energy retailer or provider draw on a small amount of your stored power at peak times, usually hot summer evenings, to take pressure off the grid. In return you get a one-off upfront incentive. It can only be claimed once per property, and the amount depends on your battery size and the provider and contract you choose, so treat any figure you see advertised as an estimate rather than a fixed rate.

From 2026, larger commercial batteries have also become eligible for PDRS incentives, which is good news for farms and businesses with bigger power loads.

Is a VPP right for you?

For some people a VPP is a no-brainer. For others, especially on rural properties where backup power during outages matters most, it's worth reading the contract closely. Check how much of your battery the provider can use, whether you can keep a reserve for blackouts, and whether there are exit fees. We're happy to talk it through with you.

What about off-grid systems?

Off-grid solar systems can still create STCs, and batteries in off-grid systems may qualify for the federal battery discount. The NSW VPP incentive, by nature, only applies to grid-connected batteries.

Things to keep in mind

• Rebates change regularly. The details in this article reflect the schemes as at September 2026.
• You'll need an accredited installer for any of these incentives to apply.
• The cheapest quote isn't always the best value once warranties, equipment quality and after-sales support are factored in.

The easiest way to know exactly what you're entitled to is to get a quote. We'll work out every rebate you're eligible for and show it clearly on your quote, so there are no surprises.