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NSWState help on top of the federal discount

New South Wales

Federal discount, plus a NSW payment for joining a virtual power plant.

Facts checked

Federal discount on a 13.5 kWh battery

$3,370 to $3,640

Signed off by 31 December 2026, before any NSW extras

Work out your battery

In New South Wales you can combine two things: the federal Cheaper Home Batteries discount, which applies everywhere in Australia, and a NSW incentive for connecting your battery to a virtual power plant (VPP).

The NSW VPP incentive

A virtual power plant is a program run by an energy company that can, with your permission, draw on some of the energy stored in your battery at busy times on the grid. NSW pays an incentive under its Peak Demand Reduction Scheme when you connect an eligible battery to an approved VPP.

  • Batteries up to 50 kWh are eligible, and the incentive is calculated on up to 28 kWh of capacity.
  • The amount is not fixed. It moves with battery size, your VPP provider and the value of the certificates behind the scheme.
  • It can be paid upfront or over time, depending on the provider.

Before you sign up, read the VPP terms: how much of your battery the provider can use, how long you are locked in, and what it costs to leave. Our guide to virtual power plants covers the questions to ask.

The old NSW battery discount

NSW previously ran an upfront discount on battery installations. The NSW Government says it is no longer available, so be wary of any quote that lists it.

The federal discount in NSW

The federal discount works the same way in every NSW postcode, with no income test. The size of it depends on your battery's usable capacity and the date your installation is signed off. Use the battery rebate calculator to see the figure for your battery.

How the two fit together

On a good quote you should see the federal discount as its own line, and the NSW VPP incentive shown separately, with the name of the VPP provider it depends on. If the VPP incentive is bundled into one big "rebate" number, ask for it to be broken out.

NSW rebate questions

Is there a NSW battery rebate in 2026?

The NSW upfront battery discount is no longer available. What NSW offers now is an incentive for connecting an eligible battery to an approved virtual power plant, and it stacks with the federal discount.

How much is the NSW VPP incentive?

NSW does not set one fixed amount. It depends on the battery's capacity (counted up to 28 kWh), the VPP provider and certificate prices, so ask each installer to show the current offer for your address on the quote.

Do I have to join a VPP to get the federal discount in NSW?

No. For the federal discount the battery only has to be capable of joining a VPP. Joining is what unlocks the separate NSW incentive.

Quotes that show every rebate as its own line.

Up to three installers in New South Wales, free, with no obligation.