If you’re planning to install a solar battery, big savings are coming your way from July 1, 2025. Thanks to a new Solar Battery Rebate scheme from the federal government and a boosted NSW incentive, it’s about to become much more affordable to add battery storage to your home.
From this date, you’ll be able to claim two separate incentives that can work together: a 30% federal rebate on eligible battery systems and a boosted state payment for connecting your battery to a Virtual Power Plant (VPP). These are stackable offers that could significantly reduce your upfront investment and ongoing energy bills.
Here’s what’s changing, what you can access, and how to make the most of the available support.
How the Solar Battery Rebate Works
The first incentive is the Cheaper Home Batteries Program (CHBP), a 30% rebate provided by the Australian Government on eligible battery systems. This rebate will be applied through your installer and is designed to bring down the upfront cost of battery storage for Australian households and small businesses.
The second incentive is through the NSW Peak Demand Reduction Scheme (PDRS). This provides an upfront financial reward for households and businesses that connect their battery to a Virtual Power Plant (VPP), a system that allows batteries to feed power back into the grid during peak demand periods. From July 1, the value of this payment will nearly double, making VPP participation even more attractive.
Importantly, these two incentives can be used together, provided your system meets eligibility requirements, which we can help confirm.
What You Can’t Combine and What’s Ending
From June 30 2025, the current NSW battery discount (offered through the PDRS) will no longer be available. And it cannot be combined with the Australian Government’s Cheaper Home Batteries Program discount, which starts from Tuesday 1 July 2025.
So if you’re installing your battery:
- Before June 30, you may access the NSW installation discount, but not the federal rebate.
- From July 1, the NSW installation discount ends, but you can claim the federal rebate and the boosted VPP incentive.
Real Examples: What These Incentives Could Look Like
Let’s break down what these new incentives might look like using real customer quotes from solar + battery systems designed for post-July 1 installation.
Lapstone, NSW: 10.12kW Solar + 20.2kWh Battery
A large, high-performance system including:
- 23 solar panels (440W), Enphase microinverters
- 2 × 10.1kWh REA Powerbank batteries
- Advanced consumption monitoring
System value: $33,913.39
STC + battery incentives applied: –$9,918.00
Final price (inc. GST): $23,995.39
➡️ This system is eligible for both the 30% federal rebate and the NSW VPP incentive, offering major savings on a high-capacity setup.
Battery-Only Example: What You Could Save
If you’re installing a battery on its own, here’s what your potential savings could look like under the July 1 incentives:
Powerbank 10 kWh – Installed Price: $12,000
→ Federal rebate: $3,600
→ VPP incentive: ~$550
→ Estimated final cost: $7,850
Powerbank 20 kWh – Installed Price: $18,000
→ Federal rebate: $5,400
→ VPP incentive: ~$1,100
→ Estimated final cost: $11,500
Powerbank 30 kWh – Installed Price: $24,000
→ Federal rebate: $7,200
→ VPP incentive: ~$1,500
→ Estimated final cost: $15,300
These are estimates, and actual savings will depend on your chosen provider and battery setup, but they show just how valuable the new rebate + incentive combo can be.
What are STCs?
STCs (Small-scale Technology Certificates) are part of the Australian Government’s Renewable Energy Target. When you install solar panels or a battery system, your system earns STCs based on how much clean energy it’s expected to generate or store.
We apply the value of these certificates as a discount on your quote, so you don’t need to claim them yourself. The bigger your system (especially battery size), the more STCs you receive, and the bigger your discount.
Why connect to a Virtual Power Plant?
A Virtual Power Plant (VPP) is a network of connected solar batteries that can send energy back to the grid when demand is high. It’s operated remotely, that means no extra physical connection is needed. When you connect your battery to a VPP, you’re helping support the grid, and you get rewarded for it.
Here’s how participating in a VPP can benefit you:
- You’ll receive a one-time, upfront incentive from the NSW Government, increasing from July 1, 2025
- You can also earn ongoing payments from your VPP provider by selling excess stored energy back to the grid
- You help lower power costs in your community and reduce NSW’s reliance on fossil fuels
For example:
- A 10kWh battery may receive around $550 upfront
- A 27kWh battery could attract around $1,500 upfront
The bigger your battery, the larger the incentive. These amounts can vary depending on your VPP provider’s terms, some offer it as an upfront payment, others as instalments, bill credits, or a discount on installation.
While Avery Solar & Electrical will guide you through system selection and make sure your battery is VPP-capable, you will need to sign up to a participating Virtual Power Plant provider directly.
We’ll provide advice on eligible batteries and help you understand your options, but the VPP contract is between you and the provider. Once you’re connected, you’ll be eligible to claim the VPP incentive and start earning from your battery.
How to Claim the Incentives
To access both the federal rebate and the NSW VPP incentive, you’ll need to:
- Choose a battery system installed on or after July 1, 2025
- Work with an installer accredited to offer both programs (that’s us!)
- Ensure your battery is VPP-capable, which most new systems are
We’ll apply the federal rebate directly to your quote and guide you through the process, and we’ll also help you choose a battery that’s eligible for the NSW VPP incentive. You’ll need to sign up with a participating VPP provider to receive the state incentive and start earning from your battery.
Access the 2025 Battery Incentives with Avery
From July 1, generous new Solar Battery Rebates are available, and Avery Solar & Electrical is here to help you claim them.
As trusted local installers across the Blue Mountains, Penrith, and Hawkesbury, we’ll make sure your system is eligible for:
✅ The 30% federal battery rebate
✅ The boosted NSW VPP incentive
✅ Long-term savings and blackout protection
We take care of everything, from system design to paperwork, so you can install with confidence. Whether you’re starting fresh or upgrading, we offer:
✔️ Custom solar + battery systems
✔️ Accredited, in-house installers
✔️ Clear quotes with rebates applied
✔️ Local support and honest advice
📞 Give us a call on (02) 4720 6300 or head to our contact page to get in touch.
