NSW solar and battery rebates: what's available and how they work
Most of the money comes from federal schemes, a smaller part from NSW, and almost all of it is applied as a discount on your quote. Here's the short version, with links to the official pages.
Rebates and discounts change, sometimes with little notice. Everything below was checked against official government pages on 27 October 2026. Before you sign anything, check the linked pages and ask your installer to show the discount as a line item on your written quote.
The short version
- Rooftop solar: a federal discount through the Small-scale Renewable Energy Scheme (SRES). It shrinks a little every year until the scheme ends in 2030.
- Home batteries: a federal discount of around 30% through the Cheaper Home Batteries Program, which sits inside the same scheme. It tapers for bigger batteries and steps down over time.
- NSW: the NSW Government's own home battery installation discount has closed, but there's a NSW incentive for connecting an eligible battery to a virtual power plant (VPP), and a separate battery discount for businesses.
Federal solar discount (Small-scale Renewable Energy Scheme)
Eligible rooftop solar systems earn small-scale technology certificates, or STCs. Most people sign the right to those certificates over to the installer, and the installer takes the value off the price of the system. On your quote it shows up as a discount, not as a cheque you receive later. The energy.gov.au rebates page and the Clean Energy Regulator's rooftop solar page explain the details.
What decides the size of the discount, according to the Clean Energy Regulator:
- the size of the system (kW) and the climate zone it's in;
- the "deeming period", which is the number of years of generation the scheme counts up to 2030. It drops by a year every year: 5 years for systems installed in 2026 and 4 years for 2027 (see the CER entitlement table);
- the price of an STC, which the regulator doesn't set. The CER's rooftop solar page describes the usual price as $33 to $38.
To qualify, the panels and inverter need to be on the Clean Energy Council's approved lists, and the system has to be installed by an installer accredited by Solar Accreditation Australia. Ask any installer, us included, to show you how many STCs your quote assumes and what price per STC it uses.
Larger business systems: the CER says the scheme has been expanded so that solar PV systems from 100 kW up to 1 MW can also claim STCs, for mid-scale systems installed from 1 October 2026. It also says applications won't open until mid to late November 2026. If you're planning a larger commercial system, ask how this applies to your timing.
Federal home battery discount (Cheaper Home Batteries Program)
The Cheaper Home Batteries Program started on 1 July 2025. Households, businesses and community organisations can get a discount of around 30% on the upfront cost of an eligible battery (5 kWh to 100 kWh) connected to new or existing solar. You don't apply to the government yourself. The installer or retailer normally passes the discount on, either upfront or as a rebate after installation.
The things that matter, from the official pages:
- It's based on usable capacity and the "STC factor". From 1 May 2026 the factor is 6.8 certificates per kWh. It's scheduled to be 5.7 from 1 January 2027 and 5.2 from 1 July 2027, and to keep stepping down to 2030.
- It tapers with size. Since 1 May 2026 the full factor applies to the first 14 kWh, 60% of it to each kWh from 14 to 28 kWh, and 15% to each kWh from 28 to 50 kWh. A very large battery gets proportionally less support.
- The installation date counts, not the contract date. The Clean Energy Regulator says the discount is set by when the battery is installed. If an installer promises a date, make sure it's realistic, and check the quote says what happens if the discount changes before installation.
- Product and installer rules apply. The battery must be Clean Energy Council approved and the installer accredited by Solar Accreditation Australia. The official page also says the installer should be on site for set-up, installation and commissioning.
- It's reviewed at least once a year. The government says it will decrease over time until 2030.
You can estimate the certificates for a particular battery with the Clean Energy Regulator's STC calculator, linked from the program page. We'll confirm the exact discount for your battery and install date in your written quote rather than quoting a number here.
NSW Government programs
Virtual power plant (VPP) incentive
The NSW VPP incentive, run under the Peak Demand Reduction Scheme, pays you for connecting an eligible battery to a virtual power plant. NSW says it applies to households and small businesses with a battery of more than 2 kWh and up to 50 kWh, and that the amount depends on the capacity made available to the grid (counted up to 28 kWh). Other points from that page:
- it can be claimed once per electricity meter (NMI);
- the actual amount depends on the VPP provider and the contract you sign, so NSW suggests comparing offers from more than one provider;
- you need an electricity retailer that's compatible with VPPs, which might mean changing retailer;
- it can be combined with the federal battery discount.
We haven't listed a dollar figure because it varies by provider. Read the VPP contract carefully, particularly how much of your battery the provider can use and when.
The earlier NSW home battery discount
NSW used to offer its own discount for installing a home battery. The NSW page on installing a battery says that discount is no longer available, because the federal program provides a larger discount from 1 July 2025.
Batteries for businesses
NSW lists a Batteries for businesses incentive available from 1 September 2026, for batteries from 20 kWh up to 30 MWh at non-residential sites. The page gives indicative discounts of about 30 to 40 per cent off a battery installed together with new or additional solar, and about 20 to 30 per cent for a battery only, and says the actual amount varies. Eligibility rules apply, including a minimum payment for batteries between 20 kWh and 200 kWh, and a signed nomination form before work starts. Our business PPA guide touches on how this can fit with a PPA.
Other support worth knowing about
- Discounted finance: the Department of Climate Change, Energy, the Environment and Water says households can get discounted finance for home upgrades through the Household Energy Upgrades Fund. Check the program page for current eligibility and which lenders are involved.
- Apartments and renters: the federal Community Solar Banks Program supports shared solar for apartment buildings and other multi-unit dwellings. See the energy.gov.au page for what's offered in NSW.
- Council programs: some councils run their own programs from time to time. We haven't checked any, so it's worth asking yours.
How to avoid getting caught out
- Ask for the discount to be shown as a separate line on the quote, with the number of certificates and the value per certificate.
- Ask what happens to the price if the discount changes before your installation date.
- Be wary of anyone telling you that you can claim both the old NSW battery discount and the federal one. The NSW page says only installations completed before 1 July 2025 could claim the NSW discount.
- Check the installer's accreditation and licence. In NSW you can check a licence on the Service NSW website.
- Get more than one quote. The government pages say the same.
Common questions
Do I need to apply for the battery discount myself?
No. The Department of Climate Change, Energy, the Environment and Water says consumers don't need to apply. The installer or retailer normally gives you the discount upfront or as a rebate after installation.
Is the federal battery discount going down?
Yes, in steps. The official schedule shows the STC factor falling from 6.8 (May to December 2026) to 5.7 from January 2027, then lower every six months to 2030. The discount is based on the installation date.
Can I get both the federal battery discount and the NSW VPP incentive?
NSW says the VPP incentive can be combined with the federal battery discount, if you meet the eligibility rules for each.
Is there a NSW rebate for home solar panels?
We couldn't find a current NSW Government rebate for rooftop solar panels on households. The main discount is the federal STC discount, which comes off your quote. Council or other programs may exist, so ask us or check with your council.
Does a business get the same battery discount?
Businesses can use the federal Cheaper Home Batteries Program too, and from 1 September 2026 NSW lists its own battery discount for eligible businesses. The two can be combined if you meet both sets of rules.
Want the numbers for your system?
Send us your details and a recent bill. We'll put the discounts that apply to your solar and battery on the quote as separate lines, so you can see what they're worth.
More guides: How much do solar and batteries cost in Sydney? · Is a home battery worth it in NSW? · How big a solar system do I need? · All guides
Sources: Department of Climate Change, Energy, the Environment and Water; Clean Energy Regulator; energy.gov.au; NSW Climate and Energy Action. Checked 27 October 2026. General information only, not financial or tax advice.