NSW Solar and Battery Incentives

Navigating the landscape of solar battery rebates and incentives in New South Wales (NSW) can be complex. This guide provides a clear and concise overview of the available state-specific incentives, helping you make informed decisions about your solar energy investments.

The federal rebates (they apply in NSW too)

Whatever NSW offers sits on top of two national rebates that every Australian home gets.

Solar panels — the STC discount. The federal Small-scale Renewable Energy Scheme knocks money off your panels through Small-scale Technology Certificates (STCs). Your installer claims them and applies the value as an upfront discount, so you never touch a certificate. It shrinks a little every January and ends in 2030.

Batteries — the Cheaper Home Batteries Program (BSTCs). Since July 2025 a second federal rebate takes roughly 30% off an installed battery, run through the same certificate system. From 1 May 2026 it’s tiered by size: the first 14 kWh of usable capacity earns the full rate, 14–28 kWh earns 60%, and 28–50 kWh earns 15% — so it’s aimed at normal household batteries. It steps down every six months from 2027 and ends in 2030. On-grid batteries must be on the approved list and VPP-capable.

What NSW adds on top

Home Energy Saver — interest-free loan (new in June 2026). NSW now offers a zero-interest loan of up to $15,000, repaid over up to 10 years with no fees, that you can put toward solar, a battery, or both. It’s open to owner-occupiers and landlords with a combined taxable household income of $210,000 or less, and it’s delivered through Brighte and Plenti. A separate discount of up to $4,000 (for households earning up to $80,000 or holding a concession card) opens later in 2026 — if you qualify for both, apply for the discount first, then borrow the rest.

Peak Demand Reduction Scheme — VPP incentive. NSW no longer pays an upfront rebate on the battery hardware itself (the federal rebate covers that), but it does pay a one-off incentive for connecting a VPP-capable battery to an approved virtual power plant. It’s commonly worth somewhere around $1,000–$1,500 depending on your battery size and certificate prices, and usually less after the provider’s fees. Your installer sets up the VPP connection, and it stacks on top of the federal battery rebate.

Feed-in tariff

NSW doesn’t set a minimum feed-in tariff — your retailer decides what to pay for exported solar, typically a few cents up to around 12c/kWh. It’s worth comparing offers, but with a battery the bigger saving comes from using your own stored power in the evening rather than exporting it.

Bottom line

Between the federal rebates, the new $15,000 interest-free loan and the VPP incentive, NSW is one of the better-supported states in 2026 for a solar-and-battery system. Confirm the loan and VPP figures for your own situation before you commit — both depend on eligibility and current certificate prices.

*Comparison Rates based on $30,000 green loan repaid over 60 months. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

© Copyright 2024 Solaris Finance – ABN 97 602 722 805. All Rights Reserved.

© Copyright 2024 Solaris Finance

ABN 97 602 722 805. All Rights Reserved.

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