If you’ve been thinking about making the switch to solar or upgrading your home’s energy storage, there’s never been a better time to act.
In a move that’s set to put real money back in the pockets of everyday Australians, the New South Wales (NSW) and federal governments have joined forces to double the cash incentives for households and small businesses installing solar batteries and connecting them to the grid.
The aim? To help you save on your energy bills, support a cleaner grid, and future-proof your home against rising costs.
What’s on offer?
From 1 July, eligible NSW households and small businesses can claim up to $1,500—up from the previous $800—when they install a solar battery and connect it to a virtual power plant (VPP).
If you’re not familiar with the term, a VPP is a network of solar batteries that work together to store and share excess energy, helping to stabilise the grid and even allowing you to sell surplus power back.
But that’s not all. The federal government’s new $2.3 billion Cheaper Home Batteries Program is also launching next month, offering a rebate that slashes the cost of a battery by about 30 per cent.
For many, this could mean thousands of dollars in savings, making solar batteries more accessible than ever.
How much could you save?
Let’s break it down with some real-world examples:
- 6 kWh battery
Federal subsidy: ~$2,232
NSW VPP incentive: ~$444 - 11.5 kWh battery
Federal subsidy: ~$4,278
NSW VPP incentive: ~$850 - 27 kWh battery (costs just over $30,000)
Federal subsidy: ~$10,000
NSW VPP incentive: $1,500 (the maximum)
These rebates can make a significant dent in the upfront cost of a battery system, which has traditionally been a barrier for many households.
Why the big push for batteries?
Australia is a world leader in rooftop solar, with around four million households now harnessing the sun’s power.
But here’s the catch: only about 4.5 per cent of those homes have a battery to store their excess energy.
That means most of us are still drawing from the grid when the sun goes down, missing out on the full benefits of solar.
By encouraging more people to install batteries and join VPPs, the government hopes to reduce demand on the grid during peak times, lower energy bills for everyone, and make the whole system more resilient.
As Climate Change and Energy Minister Chris Bowen puts it, ‘Attaching more batteries to soak up the sunshine and store energy is good for bills and the grid.’
NSW Minister for Climate Change and Energy Penny Sharpe agrees, adding, ‘By increasing battery uptake, we’re reducing demand on the whole grid, putting downward pressure on bills for everyone.’
What’s changing and when?
The current NSW battery incentive, which launched in November and has already helped more than 11,400 households install batteries, will end on 30 June.
The new, more generous federal rebate kicks in from 1 July, so if you’ve been on the fence, now’s the time to get your paperwork in order.
The NSW battery discount has ranged from $770 to $1,150 for a 6.5 kWh battery, and $1,600 to $2,400 for a 13.5 kWh battery.
The new federal program will offer even more, making it a great time to upgrade or install a system.
How do I get started?
- Check your eligibility: Both homeowners and small businesses in NSW can apply, but there may be specific requirements around the type of battery and VPP connection.
- Get quotes: Shop around for accredited installers and compare battery options. Make sure your installer is familiar with the rebate process.
- Apply for rebates: Your installer can usually help you with the paperwork for both the state and federal incentives.
- Connect to a VPP: This step is key to unlocking the NSW rebate. Your installer can advise on the best VPP options in your area.
Is it worth it?
While the upfront cost of a battery can be significant, these new rebates make it much more affordable.
Over time, you’ll save on your power bills, have more control over your energy use, and help Australia transition to a cleaner, more reliable grid.
Have your say!
As we’ve seen, the new rebates and incentives for solar batteries and virtual power plants aim to support households and small businesses in managing energy costs while helping to stabilise the grid.
These initiatives reflect ongoing efforts to encourage cleaner, more affordable energy solutions across Australia.
What are your thoughts on these government programs? Are you considering installing a solar battery? Have you already made the switch?
Feel free to share your views and experiences in the comments below. Let’s help each other make the most of these new incentives and keep those bills heading in the right direction—down!
Also read: Power bills too high? New solar rebates could help cut your power costs
Not very interested as I don’t live in NSW. However I have 7.96Kw of solar panels and had always been in credit from late 2019 until late 2024. This is when the ever increasing cost of buying from the grid, coupled with the every decreasing feed in tariff received, meant that I am now getting small quarterly bills.
At my age the payback period for a battery will probably be past my expiry date. The only advantage is that it should safeguard me from blackouts, but that needs to factored against possible higher insurance costs, coupled with the small risk of a battery fire.
How many others find it offensive that, unless you have a previous high contract, most power resellers give you 4 cents/Kw feed in tariff, but happily sell you electricity at around 50c for the same Kw.
Andrew I fully agree with your argument. We too are in the same predicament, too little too late and the end results keep changing. Someone always shifts the goal posts. It’s a joke – many of us jumped in thinking we were going to actually gain something beneficial, so what happens? The rules change! A measly tarriff feed in credit, what a damn joke.
I agree, we live in WA and started with a small solar system(not batteries) 20 years ago. At the time it was a good idea with reasonable buy-back rates. Before I retired in 2017 we upgraded to 20 panels, but now the buy-back rates are pathetic. Obviously we do save some money, but I will be long dead before the system gets anything from lower bills to recoup the cost. Just another government rip-off.