Federal and NSW Government Battery Rebates: Everything You Need to Know

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, by providing Small-scale Technology Certificates (STCs).

The Cheaper Home Batteries Program offers eligible households and small businesses a discount of around 30% on the upfront cost of installing a solar battery. The discount level is tiered based on battery size. 

The nationwide program is administered through the existing SRES program, which has now been expanded to include solar batteries. 

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.

VPP Rewards are issued to the current Synergy account holder at the time VPP Rewards are issued.

If you transferred your Plico agreement/contract during an active VPP period, your accrued VPP Rewards will be allocated to the new Synergy account holder for the property. As payments will be processed from January 2026, it is not possible to split payments across multiple Plico members.

If you have any questions about your VPP Rewards, please reach out to us.

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 was increased to $ 1,500 after this time and has been restructured again from July 2026 into the VPP Cash Rebate. Under the scheme, battery owners could get a rebate of up to $1,015.

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. 

The Cheaper Home Batteries Program is not means-tested, which open it up 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. 

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.

Battery retrofits and battery capacity upgrades are eligible under the national battery rebate program. 

You may be eligible to receive the federal battery rebate to increase your existing battery capacity, 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.

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. 

Renters in NSW can benefit from the solar and battery rebates, but not directly. A solar + battery system will help reduce the runnign costs of households. 

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.

Yes, landlords can claim federal solar and battery rebates on each property they own. 

NSW loans and other incentives are often restricted to one claim per applicant. 

Landlords of apartment buildings who are a member of several owners’ corporations, could apply for the SoAR Grant on behalf of all of them.

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. 

NSW loans and discounts are usually restricted to one claim per applicant. 

Eligible solar battery systems need to have a usable capacity between 5 kWh and 50 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. 

To claim the federal battery rebate, your solar battery needs to be VPP-ready. This means it needs to be capable of being connected to a VPP, unless it is a completely off-grid system.

To claim the NSW VPP Cash Rebate, your solar battery must be connected to an approved VPP like Plico's. 

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

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 that allows participants to gain financial rewards for their energy. 

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

If your battery system is connected to the electricity grid, the battery system needs to be VPP-ready to be eligible for the federal battery rebate, which is delivered through the STC scheme.

However, you do not need to enrol in a Virtual Power Plant (VPP) to receive the rebate. Your battery simply needs to be capable of connecting to a VPP in the future if you choose to participate.

This means you can access the federal rebate without joining a VPP, while still retaining the option to enroll later and potentially earn additional benefits like VPP rewards and the NSW VPP Cash rebate through VPP participation.

To receive the NSW VPP Cash rebate, your system must be connected to an approved VPP like Plico's. 

There is no requirement to have a VPP-connected battery system to access incentives under the NSW Home Energy Saver Program. 

Some solar and battery providers like Plico also have an approved VPP for the NSW Cash rebate, so joining the VPP and accessing the rebate is easy. 

If you have a battery system not connected to a VPP, 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 Cash Rebate under the Peak Demand Reduction Scheme).

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. 

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

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.

To receive the NSW VPP Cash rebate, your system must be connected to an approved VPP like Plico's. 

There is no requirement to have a VPP-connected battery system to access incentives under the NSW Home Energy Saver Program. 

Some solar and battery providers like Plico also have an approved VPP for the NSW Cash rebate, so joining the VPP and accessing the rebate is easy. 

If you have a battery system not connected to a VPP, 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 Cash Rebate under the Peak Demand Reduction Scheme).

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. 

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. 

Whether the rebate declines in value over time depends on the rebate program.

The Cheaper Home Batteries Program will gradually decline in value every six months through to 2030, meaning households that install earlier are likely to receive a larger rebate. The rebate is now also tiered based on battery capacity.

The NSW interest-free loan and discount do not decline over time. 

The SoAR Grant does not have a scheduled reduction in value and currently covers up to 50% of eligible project costs.

NSW's VPP Cash Rebate has changed from year to year, however the current program looks set to be implemented through to 2027/2028.

To receive the NSW VPP Cash rebate, your system must be connected to an approved VPP like Plico's. 

There is no requirement to have a VPP-connected battery system to access incentives under the NSW Home Energy Saver Program. 

The NSW Virtual Power Plant Cash Rebate/Incentive began in 2024, while the SoAR Grant began in 2025. The federal government’s Cheaper Home Batteries Program began in 2025, and the NSW Home Energy Saver Program was launched in 2026. 

The Australian Government is phasing out STCs (solar rebates) 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 Cash Rebate and NSW Home Energy Saver Program has no end date. 

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. 

The Smart Distributed Batteries Project rebate is no longer available. 

You need to apply directly through MAC Trade Services when you join an approved VPP and have your battery system installed. 

Plico offers a $1,500 discount on your battery system when you sign up for our VPP. The discount is applied automatically, so you don't need to apply for it. 

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. 

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.