NSW Battery Rebate Suspended

The End of the NSW Solar Battery Rebate (Peak Demand Reduction Scheme)

Since November of 2024, homes and businesses have been able to take advantage of a NSW battery subsidy, that was designed to reduce the initial cost of battery storage and help balance grid demand and supply throughout New South Wales.

The NSW Government has now officially determined that the NSW state and Federal battery rebates cannot be combined as the Peak Demand Reduction Scheme will no longer be available from June 30, just before the Federal battery subsidy starts.

As disappointing as the NSW battery rebate ending is for those looking into battery units, the Federal battery incentive will still enable home and businesses to get discounts on battery storage. The Government also mentioned that the Virtual Power Plant (VPP) rebate will almost double, which can also be combined with the Australian Federal battery subsidy.

Why did the NSW Battery Subsidy get Suspended?

When the NSW Battery Rebate or Peak Demand Reduction Scheme (PDRS) was initially announced, a first-term Labor Government promised NSW residents to get access to battery storage discounts on first-time battery investments from 2-28 kWh.

Since the release of the PDRS battery rebate scheme, properties in NSW have taken advantage of discounts as intended from the scheme. From the time the State battery incentive was announced to now, the Government's renewable energy strategy seems to have shifted, with the Australian Government releasing a nation-wide incentive, similar to the PDRS.

This shift has enabled all Australians to access battery storage installation discounts, just like the most well-known solar rebate. Whilst it is disappointing for NSW residents who were looking to double-dip, we see it as a win, as the Federal Government are now incentivising renewable energy systems just like this.

Can I combine the NSW Battery and Federal Battery Rebate?

The Australian Government have announced that they will be suspending the Peak Demand Reduction Scheme, which means that you will not be able to combine and claim both the State and Federal battery subsidies.

If you've been quoted with the inclusion of both the State and Federal battery subsidies, please note that this cannot be done. If we have provided you with a quote, please contact us, and we will amend your quote to accommodate these changes.

Customers interested in battery storage will now need to choose between the Cheaper Home Batteries program (Federal subsidy), or the Peak Demand Reduction Scheme (PDRS) (State subsidy).

What Virtual Power Plant Rebate Changes are there?

Connecting your home battery to a Virtual Power Plant (VPP) allows you to gain rebates which will increase by almost double from July 1, 2025.

For a 27kWh battery, the VPP rebate value will increase from $700 to around $1500. For a 10kWh battery, you can claim around $550 for your rebate.

What is the NSW Peak Demand Reduction Scheme?

Whilst technically not a rebate, the Peak Demand Reduction Scheme, or better known as the NSW battery rebate was designed to enable NSW homes and businesses get installation discounts on battery storage.

The battery scheme included an installation discount, and a Virtual Power Plant rebate to incentivise more battery owners to help balance grid imbalances.

With the Cheaper Home Batteries Program becoming available on July 1st, 2025, the NSW PDRS incentive will no longer be available to claim from June 30th, 2025.

What is the Cheaper Home Batteries Program?

The Cheaper Home Batteries program is an Australian Government funded battery storage subsidy, to incentivise homes and businesses to invest in solar batteries.

The program starts 1st of July 2025, and is designed to be a part of the Small-Scale Renewable Energy Scheme (SRES), where schemes incentivise properties across Australia to invest in renewable energy systems like rooftop solar, water heaters, and battery storage.

Whilst battery customers can't combine the State and Federal battery incentives, the Australian Federal battery subsidy delivers increase discounts compared to the PDRS State incentive