NSW solar rebates and incentives 2025: What’s available?

Navigating the world of solar power rebates in NSW can feel complex, but the savings are significant. In 2025, the financial support comes from a mix of federal schemes and targeted state incentives. The primary mechanism isn’t a direct cash-back offer from the state government for panels, but rather a federal program that provides a substantial point-of-sale discount.

For solar panels, all NSW residents are eligible for the federal Small-scale Renewable Energy Scheme (SRES). For energy storage, the landscape has changed significantly. The state’s upfront battery rebate was phased out and replaced by a new federal program, complemented by a state incentive focused on grid stability.

Here’s a breakdown of the key incentives available:

• Federal SRES Rebate: An upfront discount on solar panels, managed through Small-scale Technology Certificates (STCs).

• Federal Cheaper Home Batteries Program: A new national scheme offering a significant discount on the cost of a new solar battery.

• NSW VPP Incentive: A state-based payment for connecting your battery to a Virtual Power Plant (VPP), which helps support the wider energy grid.

• Solar Feed-in Tariffs: Ongoing credits from your electricity retailer for excess energy you send back to the grid.

• Targeted Assistance: Programs for low-income households and apartment dwellers exist, though some previous offers have now closed.

The federal government solar rebate explained

The main “rebate” that nearly all Australian homeowners receive is the federal Small-scale Renewable Energy Scheme (SRES). This isn’t a cheque you get in the mail, but an upfront discount applied by your installer, making the initial purchase much more affordable.

The scheme works by creating Small-scale Technology Certificates (STCs) based on your system’s size and location. For a common 6.6kW system in Sydney, this can reduce the upfront cost by approximately $2,000-$2,200. Your solar installer handles the process of claiming and selling these certificates, so the price they quote you will already have this discount factored in.

It’s crucial to know that the value of the SRES incentive reduces on January 1st each year, as the program is being gradually phased out until it ends in 2030. This means that installing a system sooner rather than later will maximise your savings under this scheme.

NSW solar battery rebates and incentives 2025

The support for solar batteries in NSW has seen a major shift in 2025.

Key Changes:

• The NSW Peak Demand Reduction Scheme (PDRS), which offered an upfront discount on battery installations, officially ended on June 30, 2025.

• From July 1, 2025, the new federal Cheaper Home Batteries Program took its place, offering a discount of around 30% on the upfront cost of an eligible battery system. This program is also administered through the SRES scheme.

• To complement the federal rebate, NSW now offers an enhanced Virtual Power Plant (VPP) incentive. By connecting your battery to a VPP, you can receive an additional rebate of up to $1,500. A VPP is a network of home batteries that can be used to support the grid during peak demand periods.

These two incentives can be combined, making the addition of a battery like a Sungrow SBR or Tesla Powerwall to your solar system more financially viable than ever before.

Case Study: A Family in Western Sydney The Tran family in Penrith was struggling with quarterly electricity bills nearing $700. They installed a 6.6kW system using Trina panels and a 10kWh Sungrow SBR battery. The total cost was $16,000. After applying the federal STC rebate for the panels and the new Cheaper Home Batteries Program discount, their upfront cost was reduced to approximately $10,500. Their annual savings are now projected to be over $2,400, leading to a payback period of under 5 years. Their home now runs almost entirely on solar power, with the battery providing energy through the evening.

NSW solar for low-income households

The popular Solar for Low Income Households program, which offered a free 3kW system to eligible concession card holders, is now closed to new applications.

However, other support remains available:

• Low Income Household Rebate: This is an ongoing annual rebate of up to $285 to help with electricity bills.

• Energy Accounts Payment Assistance (EAPA) Scheme: For those facing financial hardship, the EAPA scheme provides vouchers to help pay home electricity or gas bills.

While the direct solar swap offer has ended, these ongoing rebates can help manage energy costs. We recommend checking the official NSW Government Energy Saver website for any new programs that may become available.

Is the Empowering Homes solar battery loan still available?

The NSW Empowering Homes Program, which offered interest-free loans of up to $14,000 for a solar and battery system, is no longer accepting new applications. This program was designed to help homeowners overcome the upfront cost barrier, but its funding has been exhausted. Homeowners looking for financing options now typically need to consider green loans from banks or other financial institutions.

A comparison of solar feed-in tariffs in NSW for 2025

A solar feed-in tariff (FiT) is a credit you receive from your electricity retailer for any surplus energy your solar system exports to the grid. It’s important to understand that FiTs are not a government rebate but a variable rate offered by retailers.

In NSW, there is no mandatory minimum FiT rate, so offers vary significantly between companies. As of 2025, typical FiT rates range from 5c to 10c per kWh. The Independent Pricing and Regulatory Tribunal (IPART) sets a voluntary benchmark range each year, which for 2025-26 is between 4.8c and 7.3c per kWh.

AU Solar Panels’s Pro Tip: Don’t choose an energy retailer based on the highest feed-in tariff alone. A company might offer a high FiT but compensate with higher daily supply charges or usage rates. The best financial outcome comes from self-consuming as much of your own solar power as possible, as the amount you save by not buying power from the grid (often 30c/kWh or more) is far greater than the 5-10c/kWh you earn from exporting it.

How to apply for solar rebates in NSW

The good news is that for the main federal rebate, you don’t have to do much paperwork.

Applying for the STC Rebate: 1. Choose a reputable, Solar Accreditation Australia (SAA) accredited installer. This is a mandatory requirement for eligibility. 2. Your installer will calculate the STC discount based on your chosen system size and include it in your final quote. 3. When you sign the contract, you will also sign a form that assigns the right to create the STCs to your installer. They handle all the paperwork and claim the rebate on your behalf.

Applying for Battery Rebates: The process for the federal Cheaper Home Batteries Program and the NSW VPP incentive is also managed through your installer. Ensure they are an approved provider who can apply the 30% federal discount at the point of sale and assist you in connecting to an eligible VPP to claim the state incentive.

Commercial solar incentives in NSW

Businesses in NSW can also access significant incentives to switch to solar power.

• The SRES Scheme: Like residential installations, commercial systems under 100kW are eligible for an upfront discount via STCs.

• Instant Asset Write-Off: Businesses may be able to immediately deduct the full cost of their solar installation under the federal government’s instant asset write-off scheme.

• NSW Energy Saver Program: This program provides support and funding opportunities for businesses to invest in energy-efficient upgrades, which can include solar panels.

With high daytime energy usage, many businesses can achieve very rapid payback periods on a solar investment, often making it one of the smartest capital expenditures available.

If you’re ready to explore how much you could save with solar, we can connect you with trusted local professionals who can provide a detailed quote and explain all the available nsw solar rebates.