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New South Wales

NSW battery rebate: what the state adds to the federal discount

Updated

In New South Wales the battery discount itself is federal. The state adds two things on top: a one-off payment for joining a virtual power plant (VPP), and an interest-free loan for whatever is left to pay.

Federal discount in NSW, by battery size

Usable kWhMay–Dec 2026Jan–Jun 2027kWh counted for the VPP payment
10 kWh $2,720 $2,280 10 kWh
13.5 kWh $3,640 $3,040 13.5 kWh
20 kWh $4,760 $4,000 20 kWh
28 kWh $6,080 $5,080 28 kWh
32 kWh $6,240 $5,240 28 kWh
40 kWh $6,560 $5,480 28 kWh
50 kWh $6,960 $5,840 28 kWh
Federal figures at the $40 Clearing House price, excluding GST. The VPP column shows the capacity NSW counts, at most 28 kWh; the dollar amount is set by the VPP provider.

The VPP incentive

An upfront payment or bill credit for connecting a 2–50 kWh battery to a VPP, scaled on the capacity made available to the grid up to 28 kWh. The provider sets the amount; the government publishes no dollar figure. Once per electricity meter (NMI). (Energy NSW, checked )

Two size limits work against each other here. The federal taper cuts the discount on every kilowatt-hour above 14, and NSW counts nothing above 28 for its VPP payment. A battery above 28 kWh usable still qualifies for both, but the extra capacity earns only 15% of the federal factor and nothing from NSW.

To claim, you need a VPP provider that offers the NSW incentive and an electricity retailer that supports VPPs, which may mean switching retailer. The payment can come upfront, in instalments or as bill credits. (Energy NSW, checked )

Home Energy Saver loan

A zero-interest loan of up to $15,000 over up to 10 years for homeowners and landlords with combined household income up to $210,000. Batteries qualify. (Energy NSW, checked )

Suppliers must first apply any Commonwealth or NSW incentives the household is entitled to, so the loan covers what is left after the federal discount. An eligible battery needs more than 5 kWh usable capacity, solar at the same site, an approved supplier, and a 10-year warranty that guarantees at least 70% of usable capacity after 10 years. (Home Energy Saver loan guidelines, 5 August 2026, checked )

It is a loan, not a rebate, so it changes when you pay rather than what the battery costs. It is general information here, not a recommendation to borrow; the participating lenders assess each application.

A separate Home Energy Saver discount of up to $4,000 for households on up to $80,000 a year or with an eligible concession card is “coming soon”. NSW’s own example says you can’t use the loan and the discount on the same battery purchase. (Energy NSW, checked )

What closed

The NSW battery installation discount under the Peak Demand Reduction Scheme ended for households: only batteries installed before 1 July 2025 qualified. Pages that still quote it describe a scheme you can no longer use. (Energy NSW, checked )

Some state programs can’t be combined with federal certificates, and the regulator may share installation data with state regulators to check. (Clean Energy Regulator, checked )

Questions

Is there still a NSW battery rebate?

Not on the battery itself. The NSW installation discount only covered batteries installed before 1 July 2025. Households now get the federal discount on the battery, and NSW pays separately for connecting it to a virtual power plant.

How much is the NSW VPP incentive?

NSW doesn't publish a dollar figure. The payment grows with the battery capacity you make available to the grid, up to 28 kWh, and the VPP provider sets the actual amount and terms, so compare several providers.

Can I use the Home Energy Saver loan with the federal discount?

Yes. The loan covers what is left to pay on an eligible battery after other incentives, up to $15,000, interest-free over up to 10 years, for households with combined income up to $210,000.

Getting quotes in New South Wales

Get more than one quote, and ask each installer to show the number of certificates and the price per certificate behind the federal discount. VoltX Energy lists New South Wales among the states it offers batteries in, including AlphaESS.

Get a VoltX Energy quote (opens in a new tab)

Work out the federal part for your own battery and date with the rebate calculator, or see every step-down date.