Solar Battery New South Wales 2026
NSW homeowners can stack the PDRS VPP incentive (up to $1,500) with the federal battery rebate (~$3,300 for 10kWh) for total savings of $4,000-$5,500. The old BESS1 rebate is closed, but current incentives still make batteries highly affordable.
Battery Storage in NSW
New South Wales supports battery adoption primarily through the Peak Demand Reduction Scheme (PDRS) VPP incentive. Batteries installed after July 2025 via an Accredited Certificate Provider are eligible for up to $1,500 when connected to an approved Virtual Power Plant. Combined with the federal Cheaper Home Batteries rebate, NSW residents can save $4,000-$5,500 or more on a home battery system.
VPP Earnings
Beyond the upfront PDRS incentive, VPP participation earns ongoing credits of $300-$1,000+ per year during peak demand events in Sydney and regional NSW.
Time-of-Use Savings
NSW time-of-use tariffs charge up to 55c/kWh during peak. Batteries let you avoid peak rates by using stored solar, saving $60-$100+ per month.
Blackout Protection
With increasing summer storms and grid stress across Greater Sydney and regional NSW, battery backup keeps your essential circuits running during outages.
NSW Battery Programs & Incentives
Current and past incentive programs available to NSW battery buyers. The PDRS VPP incentive is the main active state program.
PDRS VPP Incentive
OpenConnect your battery to an approved Virtual Power Plant through an Accredited Certificate Provider. The discount is applied upfront to your installation cost.
- checkBattery installed after July 2025
- checkAccredited Certificate Provider required
- checkBattery connected to approved VPP
- checkNSW residential property
Federal Cheaper Home Batteries
OpenThe federal government rebate covers approximately $302/kWh. Available Australia-wide and stackable with NSW state incentives. Tiered structure changes May 1, 2026.
- checkAustralian homeowner
- checkSAA-approved battery
- checkInstalled by licensed electrician
- checkNew battery installation
NSW BESS1 Battery Rebate
ClosedThe Empowering Homes Battery Energy Storage System rebate closed on June 30, 2025. This program is no longer accepting applications. NSW residents should now focus on the PDRS VPP incentive and federal rebate.
- closeProgram closed June 30, 2025
- closeNo longer accepting applications
Accredited Certificate Provider Requirement
InfoTo access the PDRS VPP incentive, your installer must be an Accredited Certificate Provider under the NSW Energy Savings Scheme. They handle certificate creation and pass the discount to you.
- checkCheck installer is accredited
- checkInstaller handles all paperwork
- checkDiscount applied to your quote
NSW Battery Cost Breakdown 2026
Here's what a typical 10kWh battery installation costs in NSW after stacking available incentives.
10kWh Battery — NSW Pricing
Ongoing savings: Time-of-use arbitrage in NSW can save $60-$100/month, plus VPP participation earns $300-$1,000+ annually. Typical payback period: 5-7 years.
NSW Battery Prices by Size
| Size | Installed | After Rebates |
|---|---|---|
| 5kWh | $5,500-$7,500 | $3,000-$5,000 |
| 10kWh | $10,000-$12,000 | $6,200-$8,200 |
| 13.5kWh | $13,000-$16,000 | $8,000-$11,200 |
| 20kWh | $16,000-$22,000 | $10,700-$16,700 |
*After rebates = installed price minus PDRS VPP (~$1,000 avg) and federal rebate (~$302/kWh). Actual savings vary.
Monthly Arbitrage Savings
NSW time-of-use tariffs have a significant peak-to-off-peak spread. A 10kWh battery cycling daily can save:
Top Batteries for NSW
Premium battery systems with NSW-specific pricing including approximate costs after PDRS VPP and federal rebates. All are VPP-compatible and eligible for current incentives.
Tesla Powerwall 3
BYD Battery-Box Premium
Sungrow SBR
Enphase IQ Battery
Alpha ESS SMILE5
Redback Smart Hybrid
NSW Battery FAQs
helpWhat is the NSW PDRS VPP incentive for batteries?
The NSW Peak Demand Reduction Scheme (PDRS) offers up to $1,500 for connecting an eligible battery to an approved Virtual Power Plant (VPP). The incentive is delivered as an upfront discount through your Accredited Certificate Provider (installer). Batteries installed after July 2025 via an accredited provider are eligible.
helpIs the NSW battery rebate (BESS1) still available?
No. The NSW Empowering Homes Battery Energy Storage System (BESS1) rebate program closed on June 30, 2025. It is no longer accepting applications. However, NSW residents can still access the PDRS VPP incentive and the federal Cheaper Home Batteries rebate.
helpHow do I qualify for the PDRS VPP incentive in NSW?
You must use an Accredited Certificate Provider to install your battery, the battery must be connected to an approved VPP, and the installation must occur after July 2025. Your installer handles the PDRS certificate creation and applies the discount to your quote.
helpCan I stack the PDRS VPP incentive with the federal battery rebate?
Yes. NSW residents can combine the PDRS VPP incentive (up to $1,500) with the federal Cheaper Home Batteries rebate (~$3,300 for 10kWh). This brings total savings to approximately $4,000-$5,500 depending on battery size and VPP arrangement.
helpWhat are peak demand periods in Sydney and NSW?
Peak demand in NSW typically occurs on hot summer afternoons (2pm-8pm) when air conditioning load is high, and on cold winter evenings (5pm-9pm). VPP batteries discharge during these periods to reduce grid stress, which is how you earn VPP credits.
helpWhat does an Accredited Certificate Provider mean in NSW?
An Accredited Certificate Provider (ACP) is an installer authorised under the NSW Energy Savings Scheme and PDRS to create energy savings certificates. Using an ACP is required to access the PDRS VPP incentive. They handle all the paperwork and apply the discount directly to your installation quote.
helpHow much does a home battery cost in Sydney?
A 10kWh battery in Sydney costs approximately $10,000-$12,000 fully installed. After the PDRS VPP incentive (~$500-$1,500) and federal rebate (~$3,300), out-of-pocket cost is around $7,200-$8,200. Prices vary by brand, installer, and whether you need additional electrical work.
Related Resources
All Batteries
Compare all home batteries Australia-wide with pricing and specs.
Learn more →NSW Rebates
Full guide to all NSW solar and battery rebates and incentives.
Learn more →VPP Programs
Compare Virtual Power Plant programs and maximise your battery earnings.
Learn more →Battery Costs
2026 battery pricing guide with costs by capacity and brand.
Learn more →Get Your NSW Battery Quote
Find out exactly how much you'll save with the PDRS VPP incentive and federal battery rebate. We'll match you with an Accredited Certificate Provider in NSW.