An Overview Of The NSW Solar Battery Incentive Up Dates
The federal government is offering a “Cheaper Home Batteries Program” that started on July 1, 2025, which provides an upfront discount on the cost of installing home batteries alongside new or existing solar PV systems. This program aims to reduce the cost of battery systems by roughly 30%.
The rebate is capped at $372 per usable kilowatt-hour (kWh) of battery capacity.
Key details of the federal home battery rebate:
How it works: The rebate is essentially an upfront discount applied to the battery system’s cost, similar to how solar panel rebates work under the Small-scale Renewable Energy Scheme (SRES). The NSW government have removed the incentive to install a battery and is now offering an increased incentive for homeowners and small businesses to connect their solar battery to a Virtual Power Plant (VPP). From July 1, 2025, the incentive has increased to up to $1,500 as an upfront payment for connecting to a VPP. This incentive can be combined with the Federal Battery Rebate.
Program Name: Cheaper Home Batteries Program.
Launch Date: July 1, 2025.
Rebate Value: Up to $372 per usable kWh of battery capacity.
Eligibility:
Battery must be paired with new or existing solar PV.
Must be VPP-capable (even if not currently part of a VPP).
Must be installed by a Clean Energy Council (CEC) accredited installer.
Available to households, small businesses, and community organizations.
The Federal Cheaper Home Batteries Program can be combined with The NSW government VPP Incentive
Here’s a breakdown:
VPP Incentive:The NSW government provides an upfront payment for connecting a solar battery to a Virtual Power Plant (VPP).
Increased Incentive: From July 1, 2025, the VPP incentive has increased to up to $1,500.
Battery Size Matters: The incentive amount varies depending on the size (energy storage capacity) of the battery. For example, a 27 kWh battery might be eligible for around $1,500, while a 10 kWh battery could be eligible for around $550.
For more information please use these links:
https://www.dcceew.gov.au/energy/programs/cheaper-home-batteries
https://www.dcceew.gov.au/energy/programs/cheaper-home-batteries/eligibility-information
