Several solar and battery rebates are available in New South Wales (NSW) in 2025, making it an ideal time to invest in renewable energy. To help you take advantage of these opportunities, we’ve compiled answers to some of the most frequently asked questions about solar and battery rebates in NSW. 

Whether you’re looking to reduce energy bills, increase your home’s sustainability, or gain more energy independence, understanding the available rebates is the first step toward making an informed decision.

Understanding Solar and Battery Rebates: The Basics

What is the federal solar rebate?

The federal solar rebate offers discounts on solar panels and batteries through the Small-scale Renewable Energy Scheme (SRES). 

The SRES is a government scheme designed to encourage homeowners to invest in small-scale renewable energy, such as rooftop solar, solar batteries, and solar water heaters, through the provision of Small-scale Technology Certificates (STCs). 

What is the federal battery rebate? (Cheaper Home Batteries Program)

The Cheaper Home Batteries Program offers eligible households and small businesses a 30% discount on the upfront cost of installing a solar battery. 
The nationwide program is administered through the existing SRES program, which has now been expanded to include solar batteries.

How do Small-Scale Technology Certificates (STCs) work?

Rebates for solar panels and batteries are provided through a system of Small-scale Technology Certificates (STCs). Rather than the government giving you a direct cash rebate, they award you a certain number of STCs. 

Your solar installer will administer these STCs on your behalf, discounting the cost of your solar system based on the value of the STCs.

When you are quoted for a solar, battery or solar + battery system, the retailer or installer will typically have deducted your STCs (and Federal rebates) from the price already.

New South Wales-specific Rebates

What solar rebates are available in NSW? 

Solar rebates specifically available in NSW include the Solar for Apartment Residents (SoAR) Grant and the NSW VPP incentive, as well as rebates and discounts available for those on low incomes or residing in specific council districts. 

The national Cheaper Home Batteries Program is also available in NSW. 

What’s the Solar for Apartment Residents (SoAR) Grant?

The SoAR Grant provides $25 million in funding to help apartment buildings and multi-unit dwellings install communal solar systems. 

Residential owners' corporations or body corporates can apply for up to $150,000 per building or development to cover up to 50% of the total cost of installing a new shared rooftop solar photovoltaic (PV) system, helping residents save money on electricity and reduce greenhouse gas emissions. 

What’s the Empowering Homes Program?

The Empowering Homes Program was a New South Wales (NSW) Government initiative designed to help homeowners reduce their electricity bills by providing interest-free loans to eligible households for the installation of solar battery storage systems.

This program has ended, but keep an eye on future similar initiatives.

What’s the Smart Distributed Batteries Project?

The Smart Distributed Batteries Project offered a discount of up to $ 4,950 off a Tesla Powerwall to eligible homeowners who agreed to join a Virtual Power Plant (VPP) in specific NSW council areas. 

The NSW Government’s focus has now shifted, and this incentive has been replaced by the Virtual Power Plant Incentive (BESS2). 

What’s the NSW VPP Incentive?

NSW’s VPP incentive has now increased, allowing homes and businesses to earn up to $ 1,500 simply by connecting their solar battery to a VPP. The incentives range from $400 to $500 for 10kWh batteries and between $1,000 and $1,500 for 27kWh systems. 

Only batteries installed and connected after July 1, 2025, via an accredited certificate provider (ACP) are eligible. Plico matches the discount with our $1500 discount. 

You can stack the VPP incentive with the federal battery rebate, resulting in even greater savings.

Do local councils offer rebates?

Some local councils offer rebates for solar + battery installations. Randwick City Council provides rebates for rooftop solar (e.g., 10% up to $500 for households), solar batteries (e.g., 10% up to $1,000 for families), EV chargers, and other items.

To find out if your local council offers any rebates, visit your council’s website. Programs can change over time, so it’s worth checking regularly.

Which energy retailers offer feed-in credits?

Energy retailers that sell electricity to solar customers in Australia may offer solar feed-in credits (also known as feed-in tariffs). These credits are payments or bill reductions you receive for any excess electricity your solar panels export back to the grid.

Feed-in tariffs vary between retailers and plans. Some may offer up to around 10 cents per kilowatt-hour, while others may not offer a tariff (or may instead charge for exported energy under specific arrangements). It’s best to check directly with your energy retailer to understand the available options.

Expired NSW Solar and Battery Rebates

What was the NSW Home Battery/PDRS incentive? 

The New South Wales (NSW) Home Battery incentive was part of the Peak Demand Reduction Scheme (PDRS), which was designed to incentivise households and small businesses to install solar batteries financially. 
The discount for installing a battery (BESS1 activity) typically ranged between $1,600 and $2,400. 
This battery installation discount is part of the incentive scheme, which ended on June 30, 2025; however, the BESS2 VPP Incentive has been increased to $ 1,500 and remains ongoing. 

What was the Solar for Low-Income Households program?

The Solar for Low-Income Households program offered free solar systems to eligible low-income households, designed to reduce their ongoing electricity bills. 

Under the scheme, Concession Card or Department of Veterans’ Affairs Gold Card holders in selected NSW locations could have a 3-kilowatt solar system installed in their home for free. 
Applications for the Solar for Low-Income Households program closed on 1 July 2024. 

Eligibility Requirements for Solar and Battery Rebates in NSW

Am I eligible for the federal battery rebates?

The Cheaper Home Batteries Program is not means-tested, which means it’s open to households, small businesses, and community facilities. You must be a permanent resident of Australia over the age of 18. 

The only restriction is that you can only claim the rebate once per premises. The system and its installation will be subject to more stringent requirements.

Can I still receive the federal rebate if I already have solar panels?

Yes. The federal battery rebate, delivered through the Cheaper Home Batteries Program, is specifically designed to support the installation of a battery connected to either a new or an existing rooftop solar PV system.

Can I get a federal rebate if I already have a battery?

You may be eligible, provided your existing battery system has not already received the federal battery rebate. For your system to qualify, the combined capacity of your battery system must be at least 5 kWh but not exceed 100 kWh, be VPP-ready and be one of the approved systems listed on the Clean Energy Council website.

Am I eligible for the SoAR Grant?

To access the SoAR Grant, you must be either a NSW residential owners' corporation responsible for the management of a strata scheme or a strata managing agent. 

A nominated resident can make the application on behalf of an owners’ corporation. 

Can renters in NSW benefit from solar rebates?

Renters in NSW can benefit from the solar rebates, but not directly. The purpose of the SoAR Grant is to reduce bills for apartment residents - including tenants. It’s estimated you can save up to $600 a year per apartment.

Can landlords claim the federal rebates on multiple properties?

Yes. Landlords can claim small-scale technology certificates (STCs) for multiple properties, whereas rebates are typically applied to the building or property itself, rather than the individual units. 

This means that if a landlord were a member of several owners’ corporations, they could apply for the SoAR Grant on behalf of all of them. 

What happens if I move after installing solar?

In NSW, you can claim federal solar rebates again if you move house, because the incentive is tied to the installation at the property, not you as the homeowner. 

Equipment and Installation Requirements

Which batteries are eligible for the federal Cheaper Home Batteries rebate?

Eligible solar battery systems need to have a usable capacity between 5 kWh and 10050 kWh (the rebate is capped at 50 kWh), be capable of connection to a VPP and be listed on the Clean Energy Council’s (CEC) approved list. 

Does my battery need to be connected to a Virtual Power Plant (VPP)?

Your battery does not need to be connected to a VPP, but it must be VPP-ready, meaning it has the capability to be connected to a VPP.

Who can install my battery system?

Your battery must be installed by an accredited installer who has been certified by Solar Accreditation Australia.

Virtual Power Plants (VPP) 

What is a VPP?

A Virtual Power Plant (VPP) is a network of household solar and battery systems, as well as battery-only systems, that is managed remotely to generate, store, and transfer energy to and from the grid. 

VPPs can increase or decrease energy supply to the grid almost instantly, providing a flexible, cost-effective and clean energy solution to support the grid. 

VPP providers have different market drivers for VPP events. Plico utilises a higher market value, resulting in fewer VPP events overall. 

Do I need to connect my battery to a VPP to be eligible for the federal rebates?

Your battery system (or its inverter) needs to be VPP-ready to be eligible for the federal rebate, which is distributed through the STC scheme. 

It’s not mandatory to enrol in a VPP, but your battery has to have the option for you to do so later to be eligible for the rebate. 

Do I need to connect my battery to a VPP to be eligible for the state rebates?

To receive the NSW VPP incentive, enrolment in an approved VPP is required.

Can I choose my VPP, or will my provider choose it for me? 

To access the rebate, you must select a VPP that the government has approved. The NSW government's website lists multiple VPP providers that offer the state incentive (the VPP incentive under the Peak Demand Reduction Scheme). 

How much can I earn for my energy in a VPP?

There are many benefits to connecting to a VPP. Earning money back is just one of them. Your earnings will depend on the VPP and the amount of energy you export. With Plico, you can earn 50c/kWh when you join an eligible electricity plan. 

Combining Rebates and Multiple Claims

Can I combine the NSW rebates and the Federal Battery rebate?

Yes, you can combine the NSW rebates and the Federal Battery rebate, providing you are eligible for both. 

How much can I save with the current NSW solar incentives?

How much you can save depends on the system size. If you choose to install a new, average-sized 6.6kW solar system with a 13.5kWh battery, the total upfront installation savings from these combined incentives could be in the range of $6,000 – $8,000, by combining STCs, the Federal Cheaper Home Batteries Program, and the NSW Virtual Power Plant Incentive. 

Can I get a rebate multiple times?

Rebates and incentives are typically associated with the property where the solar or battery system is installed. In NSW, the federal solar rebate (Small-scale Renewable Energy Scheme) applies per installation, not per person. Therefore, if you move to a new home and install a new eligible solar or solar + battery system, you can still claim the rebate for that property.

However, state or local council rebates (when available) may have their own rules and eligibility criteria. It’s essential to check the specific terms of each rebate program before applying to ensure your new installation qualifies.

Timelines, Deadlines & Limitations

When did the Cheaper Home Batteries Program start, and when will it end?

The Cheaper Home Batteries Program started on 1 July 2025 and will run until 2030, with the discount gradually decreasing. The amount of usable capacity your battery has determines the discount. 

Do the rebates decline in value?

It depends on the rebate program. The Cheaper Home Batteries Program will gradually decline through 2030. 

The SoAR grant doesn’t decline over time, and NSW’s VPP incentive has been increased, rather than decreased. 

What are the NSW government solar rebates for 2025?

NSW government solar rebates for 2025 are the Virtual Power Plant Incentive and the Solar for Apartment Residents (SoAR) Grant. 

NSW residents installing new solar panels also benefit from the Federal Government's Small-scale Renewable Energy Scheme (SRES), which provides an upfront financial incentive in the form of Small-scale Technology Certificates (STCs).

When did the NSW solar incentives start?

The NSW Virtual Power Plant Incentive began in 2024, while the SoAR Grant began in 2025. The federal government’s Cheaper Home Batteries Program began in 2025. 

When will the NSW solar incentives end?

The government is phasing STCs out entirely by the end of 2031, while the Cheaper Home Batteries Program will run until 2030. Any project that receives funding under the SoAR grant must be finished by October 2026. The VPP Incentive has no end date. 

How to Apply for the Rebates in NSW

How do I apply for the SoAR rebate in NSW?

Once you have ensured that you and your building meet the criteria, you can submit your application through the NSW Government’s grants portal. 

This includes submitting an expression of interest (EOI) and, if your EOI is successful, you will be invited to apply. 

How do I apply for the Smart Distributed Batteries Project?

The Smart Distributed Batteries Project rebate is no longer available.

How do I apply for the NSW VPP incentive?

Typically, you do not need to apply for the NSW Virtual Power Plant (VPP) incentive, as your provider will manage the process. The incentive is then provided as an upfront discount or a cash payment after installation.

How do I apply for Plico’s $1500 VPP discount?

Plico offers a discount on your battery $1500 when you sign up for our VPP. The discount is applied automatically, so you don't need to apply for it.

How do I apply for the National Battery rebate?

Your installer handles the discount, which means you don’t have to apply for the rebate. This rebate scheme is administered through Small-Scale Technology Certificates (STCs), which your installer or retailer will claim on your behalf and pass on to you as a discount. 

How long does the application process take for the National Battery Rebate?

Typically, you should receive the rebate almost immediately as an upfront discount on your invoice. Your installer or retailer manages the actual process, which can take longer. 

If you want to discuss your solar needs in a friendly, no-obligation way, you can chat with one of the switched-on Plico team members on 1300 175 426 or by filling out the contact form below. As a trusted, local solar battery provider, we'd love to assist you in creating your dream home!