Sydney and NSW Solar Rebate
Maximise Savings with NSW & Sydney Solar Rebates
Solar power is a valuable investment for homes and businesses across New South Wales. With the ongoing drop in solar technology costs, along with NSW solar rebates and federal solar incentives, making the switch has never been more affordable. Additionally, generous feed-in tariffs from electricity retailers help residents save more by earning credits for the energy they produce.
The NSW Government offers multiple rebates and incentives, making it easier for Sydney and NSW residents to switch to solar energy and reduce electricity bills. From upfront discounts to the new solar battery rebate program, these options can significantly lower your solar installation costs. In this guide, we’ll walk you through everything you need to know about the NSW solar panel rebate, the rebate swap for solar, and specific rebates available for Sydney residents.
What is the Solar Panel Rebate in NSW?
A rebate is essentially a discount or partial refund offered after purchase, and with solar, it’s a powerful financial incentive that can help make systems more affordable. Specifically, a solar panel rebate is part of the federal government’s Small-scale Renewable Energy Scheme (SRES), which supports those installing solar and other renewable systems.
In New South Wales, homeowners can benefit from this rebate through Small-scale Technology Certificates (STCs). To qualify, the system must be under 100kW, feature Clean Energy Council-approved panels and inverters, and be installed within 12 months of applying for STCs.
The rebate amount can vary based on the system, but many NSW residents receive an upfront benefit of up to $2,000 or more, significantly reducing initial solar costs.
Solar Options for Low-Income Households in NSW
Although the “solar for low income households” rebate swap offer has ended, NSW still provides financial support to help low-income residents access solar energy.
Eligible households can take advantage of the new solar battery rebate, offering up to $2,400 off solar battery installations. Additionally, some energy providers offer special feed-in tariffs, giving credit for excess solar energy fed back to the grid, further reducing electricity costs.
For more details on eligibility and options, check with your energy provider or visit the NSW Government website to explore the latest rebates and incentives.
NSW Federal Battery Rebate
The $2.3 billion Cheaper Home Batteries Program will support Australian households and small businesses with a discount on the cost of installing small-scale battery systems. The program aims to:
- help households to make the most of cheap and clean solar power by storing it for when it is needed
- reduce costs for everyone – not just those who install a battery – because it means less expensive gas power generation, poles and wires.
From 1 July 2025, the program will provide around a 30% discount on the upfront cost of installing eligible small-scale battery systems. The discount will be based on the battery’s usable capacity and will gradually decrease until 2030.
The discount will generally be provided via solar and battery retailers and installers. The Cheaper Home Batteries Program will be delivered through the Small-scale Renewable Energy Scheme (SRES), administered by the Clean Energy Regulator.
Eligible battery systems
Minimum and maximum battery size
- An eligible battery storage system must be in the range of 5 kilowatt-hours (kWh) to 100 kWh in nominal capacity. The nominal capacity is the maximum amount of energy a battery can store at full charge.
- The discount will be provided for up to 50 kWh of a battery system’s usable capacity.
- The program is intended to support residential and small-scale battery systems. Electric vehicles are not eligible battery systems for this program.
Battery system composition
- An eligible battery system (as captured in the relevant Australian standard AS/NZS 5139:2019) could include:
- a single battery unit
- a system of modular battery cells connected to serve as one battery unit.
- Additional capacity added to an existing battery system is eligible if:
- the battery system has not previously received a discount under the program; and
- the additional capacity is at least 5 kWh and the total upgraded capacity of the battery does not exceed 100 kWh in nominal capacity.
- Additional capacity that is later added to an existing battery that received a discount under the program would not be eligible.
Accreditation of battery systems
A battery system and the inverter must be listed on the Clean Energy Council (CEC) approved product list.
VPP capability
- A battery in an on-grid system needs to be capable of being coordinated through a virtual power plant (VPP), but does not need to be connected to a VPP.
- To be VPP capable, a battery system must be able to connect to the electricity grid and respond to signals from third party VPP operators (such as a retailer). This will require an ongoing internet connection.
- Consumers are not required to participate in a VPP.
- Off-grid battery systems would not be required to be capable of connecting to a VPP.
Discount for Eligible Battery Systems
STC calculation
- The number of small-scale technology certificates (STCs) that a battery system is eligible for will be in reference to the kilowatt-hours of usable capacity of the battery system. The usable capacity of the battery is the amount of energy that can be discharged from a battery and represents the power that a home or small business can draw from the battery.
- STCs will only be provided for the first 50 kWh of the usable capacity of a battery system.
- The discount rate in 2025 would be represented as 9.3 STCs per kWh of usable capacity, equivalent to around $372 per kWh.
- The number of STCs will decline for battery systems installed in 2026 and later years until the scheme ends in 2030.
- The calculation of STCs will be based on the number of STCs per kWh of installed usable capacity of the battery and the year of installation, as outlined in Table 1.
Table 1 | ||||||
Year | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
Estimated value per kWh | $372 | $336 | $296 | $260 | $224 | $188 |
STC factor | 9.3 | 8.4 | 7.4 | 6.5 | 5.6 | 4.7 |
- The estimated value per kWh is approximate and based on $40 per STC for a battery installed in the year. This could vary over time in line with reviews of whether the discount remains appropriate.
Number of battery systems
- A single battery system installation at a premises is eligible for support once under the program.
- Additional rebates or incentives from states and territories may be available for batteries. Eligibility or other support will depend on criteria that applies in those schemes.
The PDRS Scheme's Battery Eligibility Requirements
The PDRS is designed to increase adoption of solar battery storage throughout Newcastle, the Hunter, and throughout NSW, helping more Australians invest in their first energy storage systems. With the incentive including both price reductions for batteries and rewards for connecting to a Virtual Power Plant, there are options for most people.. but what are the battery eligibility requirements?
Solar and battery owners who sign up and connect to a Virtual Power Plant (also called Demand Response contracts), can earn an incentive through the Peak Demand Reduction Scheme of up to $400 per claim which can claimed twice with at least 3 years apart.
So not only can you save on your solar with incentives, on your battery with incentives, but now you can earn incentives by connecting them to a VPP.
Through the Peak Demand Reduction Scheme, solar and battery owners who sign up to a Virtual Power Plant earn an incentive which can be claimed twice with at least 3 years apart. Similar to the discount on your first battery, the discount is dependent on how large your battery is. The larger the capacity, the larger the incentive.
2-28kWh Capacity
Must have a usable battery capacity greater than 2 kWh and less than 28 kWh.
Approved Product List
Must be listed on the approved product list specified by the Scheme Administrator.
Minimum 6 Years Warranty
Must have a minimum 6 years remaining on the warranty.
70% Usable Capacity
At least seventy percent (70%) of Usable Capacity being retained 10 years from the date of installation.
-10°C to 50°C Temp Range
A minimum ambient temperature range of -10°C to 50°C.
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NSW Solar Rebate FAQs
What solar rebates are available in NSW now?
NSW offers several solar incentives, including the federal Small-scale Renewable Energy Scheme (SRES) and a new solar battery rebate program starting 1 November 2024. The battery rebate can provide eligible households with up to $2,400 off installation costs, making solar more affordable.
What was the “solar for low income households” rebate swap, and is it still available?
The "solar for low income households" rebate swap allowed eligible low-income households to exchange their energy rebate for a solar system at no upfront cost. This program ended in April 2024. However, low-income households can still access the new solar battery rebate and feed-in tariffs to reduce energy expenses.
Who qualifies for the NSW solar battery rebate?
To qualify, applicants must have an approved solar system with Clean Energy Council-approved panels and inverters. The rebate amount depends on the battery's capacity, and the rebate is available to both residential and commercial properties across NSW.
Are there regional requirements for the NSW solar rebates?
NSW solar rebates are open to all eligible residents and businesses across the state, though certain offers, such as feed-in tariffs, may vary by region or provider.
Can low-income households still get help with solar installation costs?
Yes. Although the rebate swap program has ended, low-income households can still benefit from NSW's solar battery rebate. Additionally, some energy providers offer feed-in tariffs, which provide credits for unused solar energy sent to the grid.
How much can I save with NSW solar rebates?
The savings vary by system size and eligibility, but rebates can reduce upfront costs by as much as $2,000. Further savings may come from feed-in tariffs, which provide credits for excess energy sent back to the grid.
Where can I find more information on NSW solar rebate eligibility and applications?
For more details and to check eligibility for NSW solar rebates, including the battery rebate, visit the NSW Government energy website. The site also offers calculators to estimate potential savings and helps with the application process.
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