Rebates
Solar and battery rebates in NSW, explained
A plain-English guide to the federal battery discount, the solar STC rebate and the NSW VPP incentive: how they work, roughly what they're worth and when they change.
Last checked against the government sources on 1 November 2026. Rules change, so your quote should show the figures that apply on your installation date.
The federal battery discount: Cheaper Home Batteries
The Cheaper Home Batteries Program started on 1 July 2025. An eligible battery earns small-scale technology certificates (STCs) based on its usable capacity. Their value comes off the price at the point of sale, so you don't apply for anything yourself.
How much is it worth?
The number of certificates depends on the battery's usable capacity and the date it's installed. Since 1 May 2026, capacity is counted in bands:
| Usable capacity | Certificates earned |
|---|---|
| First 14 kWh | The full rate for each kWh |
| Over 14 kWh, up to 28 kWh | 60% of the rate for each kWh |
| Over 28 kWh, up to 50 kWh | 15% of the rate for each kWh |
| Over 50 kWh | None |
As a rough guide, a battery with 10 kWh of usable capacity installed before 31 December 2026 earns 68 certificates. At a certificate price of around $38, that's roughly $2,600 off. Certificate prices move with the market, so your quote shows the actual figure.
The rate drops every six months
The full rate per kWh is set by the installation date and steps down every January and July until the program ends:
| Installation date | Certificates per kWh (first 14 kWh) |
|---|---|
| May to Dec 2026 | 6.8 |
| Jan to Jun 2027 | 5.7 |
| Jul to Dec 2027 | 5.2 |
| Jan to Jun 2028 | 4.6 |
| Jul to Dec 2028 | 4.1 |
| Jan to Jun 2029 | 3.6 |
| Jul to Dec 2029 | 3.1 |
| Jan to Jun 2030 | 2.6 |
| Jul to Dec 2030 | 2.1 |
Who is eligible?
- The battery must be on the Clean Energy Council's approved battery list and have a nominal capacity of 5 to 100 kWh. Certificates are only paid on the first 50 kWh of usable capacity.
- It must be installed with a solar system, new or existing.
- Grid-connected batteries must be technically capable of joining a virtual power plant, but you don't have to join one.
- It must be installed by a Solar Accreditation Australia (SAA) accredited installer with battery endorsement, and to the Australian Standard for battery installations (AS/NZS 5139).
- Only one battery per home is eligible, and it must be new.
The solar rebate: small-scale technology certificates
Rooftop solar systems up to 100 kW earn STCs under the federal Small-scale Renewable Energy Scheme. The number of certificates depends on the size of the system, where you live (Sydney is in zone 3) and how many years are left until the scheme ends in 2030. Like the battery discount, it's usually taken off the price up front.
Because the years left shrink each January, the solar discount gets a little smaller every year. A 2027 installation earns less than the same system installed in 2026.
The NSW VPP incentive
NSW used to offer its own incentive for buying a new home battery under the Peak Demand Reduction Scheme. That incentive for new home batteries stopped on 30 June 2025, when the federal program took over.
NSW still offers an incentive for connecting a battery to a virtual power plant (VPP). From 1 July 2026, batteries of up to 50 kWh can take part, and solar is no longer required for this incentive. It's paid through the VPP provider, as a payment or bill credits, and the amount varies between providers. Ask any VPP provider for their exact offer and conditions before you sign up.
Putting it together
For most Hills District homes in 2026, the up-front savings are:
- Solar only: the STC solar discount.
- Battery added to existing solar: the federal battery discount, and optionally the NSW VPP incentive if you join a VPP.
- Solar and battery together: both federal discounts, and optionally the NSW VPP incentive.
The biggest saving usually comes not from the rebates but from using more of your own solar instead of buying power from the grid.
Official sources
- Cheaper Home Batteries Program (Department of Climate Change, Energy, the Environment and Water)
- Solar batteries: eligibility (Clean Energy Regulator)
- Changes to the Cheaper Home Batteries Program from 1 May 2026 (Clean Energy Regulator)
- VPP incentive (NSW Climate and Energy Action)
Rebate questions
Do I have to apply for the battery rebate myself?
No. The value of the certificates is taken off the price of an eligible battery at the point of sale. There is no form to fill in and no refund to wait for.
When does the battery rebate go down?
The number of certificates per kWh drops every 1 January and 1 July until the program ends in 2030. The next drop is on 1 January 2027, from 6.8 to 5.7 certificates per kWh for the first 14 kWh.
Do I need solar to get the federal battery rebate?
Yes. The battery has to be installed with a solar system, which can be new or one you already have.
Get a quote before the next rebate drop
The battery discount falls on 1 January 2027, and what counts is the installation date. Get a free quote now and see what you'd save.