Rebates & Policy
Unlock Big Savings with the NSW Battery Rebate & VPP Scheme (2025 Guide)
Maximise your solar power, reduce bills, and future-proof your energy needs.
If you're a NSW homeowner looking to add a battery to your solar system, now is the perfect time. Thanks to recent changes from both the NSW Government and the Australian Government, households can now access combined battery rebates worth thousands of dollars. Especially when you connect to a Virtual Power Plant (VPP).
This blog breaks down exactly what these rebates are, how much you can save, and what you need to know before installing a solar battery system in 2025.
What's New in 2025?
Federal Rebate - Cheaper Home Batteries Program (https://www.energy.gov.au/news/australians-can-now-access-support-small-scale-batteries)
As of July 1, 2025, the Australian Government offers a 30% rebate on eligible battery purchases when paired with rooftop solar. (Source: energy.gov.au)
NSW VPP Rebate - Up to $1,500 (https://www.energy.nsw.gov.au/households/rebates-grants-and-schemes/household-energy-saving-upgrades/connect-your-battery-virtual)
NSW has replaced its earlier battery rebate with a new incentive for homeowners who install a VPP-compatible battery and connect to the grid.
Together, these can reduce your upfront costs by thousands.
What is a Virtual Power Plant (VPP)?
You always power your home first
You receive upfront rebates and ongoing credits
You support a greener, more resilient energy system
Participation is voluntary, and most providers offer opt-out clauses if you change your mind later.
How Much Can You Save?
With both the federal and NSW rebates available in 2025, the potential savings are substantial.
For Example
If you install a 10 kWh battery, you could receive around $3,000 from the federal rebate and up to $550 from the NSW VPP incentive, giving you a total upfront saving of approximately $3,550.
For a larger 27 kWh battery, the combined savings can reach around $9,600, made up of about $8,100 from the federal rebate and up to $1,500 from the NSW VPP rebate.
The exact amount depends on your battery size, the provider you choose, and your participation in a Virtual Power Plant. These figures show how now is one of the most cost-effective times to invest in battery storage for your home.
Who's Eligible?
Be a NSW resident
Have existing or new rooftop solar
Install an approved battery system between 2-28 kWh
Use a Virtual Power Plant compatible battery
Work with an Accredited Certificate Provider (ACP)... like SunPeople
Be connected to the energy grid (not off-grid)
For more info and to view approved providers, visit the NSW Energy Saver (https://www.energy.nsw.gov.au/households/rebates-grants-and-schemes/household-energy-saving-upgrades/connect-your-battery-virtual) and Clean Energy Regulator (https://cer.gov.au/) websites.
Planning Your Battery Installation
Before installing a battery, it's important to evaluate your current setup and future plans. And this is where SunPeople can begin to help you.
Firstly, ask yourself (with the help of SunPeople):
How much solar energy do I export to the grid?
How much electricity do I buy during peak times?
Is my system large enough to charge a battery consistently?
Am I planning to buy an EV, install an electric hot water system, or move away from gas?
These factors affect the ideal battery size and whether other upgrades are needed, such as expanding your solar capacity, upgrading your switchboard, or removing asbestos from your meter panel (https://www.safework.nsw.gov.au/hazards-a-z/asbestos).
Is There a Catch?
Providers may remotely draw power from your battery during peak demand
You remain in control of your household usage (https://www.energy.gov.au/news/discounted-batteries-households-through-cheaper-home-batteries-program)
Most programs allow you to opt out at any time (https://www.energy.gov.au/news/discounted-batteries-households-through-cheaper-home-batteries-program)
Overall, VPP participation is proving popular because it provides meaningful returns without sacrificing home energy reliability.
Why Now is the Time to Act
Federal incentives are new and generous, but may scale back after 2026
NSW's direct battery rebate has ended, meaning the VPP is now the only pathway to state-based rebates
Batteries reduce your bills, give you energy security, and prepare your home for an electric future
Installing a battery and joining a VPP in 2025 can provide one of the fastest returns on investment in the renewable energy market.
We Can Help You Every Step of the Way
SunPeople team are Accredited Certificate Providers, we'll help you:
Understand your eligibility
Choose the right battery size and brand
Connect to a reliable VPP provider
Maximise your rebate and savings
Plan for your home's future energy needs
Sources
Energy.gov.au - Federal Battery Rebate Info: Details on the Cheaper Home Batteries Program (launched July 2025) (https://www.energy.gov.au/news/discounted-batteries-households-through-cheaper-home-batteries-program)
Energy NSW - Virtual Power Plant and Battery Rebate Details: Official info on NSW's VPP incentive replacing the earlier battery rebate (https://www.energy.nsw.gov.au/households/rebates-grants-and-schemes/household-energy-saving-upgrades/connect-your-battery-virtual)
Clean Energy Regulator - Battery Guide: Eligibility info, registered battery brands, and ACP requirements (https://www.cleanenergyregulator.gov.au/RET/Scheme-participants-and-industry/Power-stations/Batteries)
Legislation.gov.au - Federal Legislation on Battery Rebate (F2025L00765): Legislative documentation confirming rebate structure and timeline (https://www.legislation.gov.au/F2025L00765/asmade/text)
Solar Calculator - VPP Operation Overview (https://solarcalculator.com.au/battery-storage/rebate/nsw/)
SafeWork NSW - Asbestos Guidance for Electrical Panels: Advice on safely identifying and removing asbestos from older meter panels before battery installation (https://www.safework.nsw.gov.au/hazards-a-z/asbestos)
