Latest update on solar battery rebates in NSW

1. 🏛️ NSW Battery Rebate Ending 30 June 2025

• The NSW Peak Demand Reduction Scheme (PDRS) battery rebate—which provided upfront discounts of $750–$2,400 depending on battery capacity—will cease on 30 June 2025

• From 1 July, this state rebate will no longer be available or combinable with any other battery subsidy

2. ☀️ Federal “Cheaper Home Batteries Program” Launching 1 July 2025

• The Australian Government is rolling out a $2.3 billion subsidy program starting 1 July 2025 offering up to 30% off battery installation costs, capped at $372 per kWh, for battery sizes between 5–100 kWh
• For an 11.5 kWh battery, that equates to around $4,278 in savings
• It aims to drive down household energy expenses and integrate more storage into the grid

3. 🔋 NSW VPP Incentive Increasing

• From 1 July, the NSW VPP connection incentive—paid when you join a Virtual Power Plant—will increase to up to $1,500, depending on system size (e.g., ~$550 for a 10 kWh unit, ~$1,500 for 27 kWh)
• Unlike before, this is now a single upfront payment rather than two separate payouts

4. 🚫 Incentive Stacking Clarified

• Critically, you cannot stack the old NSW installation rebate with the new Federal rebate. It’s one or the other, based on whether your installation is before or after 30 June 2025
• However, the Federal rebate can be combined with the new NSW VPP incentive, boosting savings for systems connected to VPPs

5. 💰 Example Savings Breakdown

Using a 10 kWh battery as an example (cost ~$10,000):

1. State rebate (if installed by 30 June): up to ~$1,600–$2,400
2. Federal rebate (if installed after 1 July): up to 30% (~$3,000)
3. NSW VPP incentive: approx. $550–$1,500

• Install before July 1: you get the NSW rebate only.
• Install after July 1: you get ~$3,000 Federal rebate plus VPP bonus, totalling around $3,560

6. ⚡Why It Matters

• The shift reflects a strategic move: eliminate double-dipping and emphasize federal funding plus VPP grid support .
• NSW government highlights that connected batteries help stabilize the grid during peak demand

✅ What You Can Do Next

• If your installer can finish by 30 June, you may still get a combo of state rebate + VPP credits—though it won’t stack with the federal one.
• If installation will be after July 1, prioritize joining a VPP to maximize combined federal + state VPP savings.
  

🧭 Final Take

• NSW Upfront Rebate ends 30 June 2025
• Federal 30% rebate starts 1 July 2025
• NSW VPP bonus upgraded and stackable with federal rebate
• Smart move: align your install timing to whichever combo (state vs fed) gives you the best deal; always opt into a VPP if possible
• Recent price hikes (DMO) are fueling this push—CPI on energy could rise up to 9.7%, pushing more households toward solar + storage