You’ve probably heard people talking about how the NSW battery rebate is changing. Maybe a neighbour mentioned it. Maybe your solar installer brought it up.
The NSW government is about to make a big change that could nearly double what you get paid for joining a Virtual Power Plant. But if you don’t know what that means or how to take advantage of it, you’ll miss out. And once the deadline hits, there’s no going back.
At PSC Energy, we understand the frustration of the government going back on an election promise. There is a government rebate, and now there is another scheme. And somewhere in the fine print, the whole thing starts to sound more like homework than a win. If you already have solar or are considering a battery, this matters.
In this article, you’ll learn about the following:
- What’s Changing with the Virtual Power Plant Incentive from July 2025?
- How Do Virtual Power Plants Work?
- Do You Qualify for the Incentive, and What If You Don’t Have a Battery Yet?
- How Do You Choose the Right Virtual Power Plant Provider?
- How Do You Sign Up and Claim the Incentive?
- FAQ
By the end of this guide, you’ll understand what changes will take effect from 1 July 2025. You’ll also receive some statistics on how Virtual Power Plants work, including how much money you can earn, who qualifies, and how to sign up.
What’s Changing with the Virtual Power Plant Incentive from July 2025?
Starting 1 July 2025, the NSW Government will increase the upfront incentive for connecting your battery to a Virtual Power Plant. Currently, you may be eligible for up to $800 if you connect a 27 kilowatt-hour (kWh) battery before July. But from 1 July, that amount could jump to as much as $1,500.
That’s nearly double the payment for the same battery, just for waiting until the new rate kicks in.
This isn’t a flat payment for everyone. The size of your battery determines how much you get. The more usable storage your battery has, the higher the incentive.
Here’s what you could earn from July 2025:
- Up to $550 for a 10 kWh battery
- Up to $1,500 for a 27 kWh battery
This incentive is separate from and can be used alongside the Australian Government’s Cheaper Home Batteries Program (the federal battery rebate). That program offers a discount on purchasing a new battery. If you use it to get a battery installed, you can still claim this NSW VPP incentive on top of it.
You can only claim the VPP incentive once per home, based on something called your National Metering Identifier. That’s the unique code for your electricity meter.
If you’ve already claimed this incentive between 1 November 2024 and 30 June 2025, you can’t claim it again under the new higher rates. However, your VPP provider may offer you an alternative to stay connected.
If you’re interested in learning a bit more about the benefits of solar batteries, you might want to start with the following article titled, 7 Benefits of Adding a Battery to Your Solar System.
Power up your savings. Click here.
How Do Virtual Power Plants Work?
A Virtual Power Plant, or VPP, is a group of home batteries connected through the internet. These batteries don’t have extra wires or special hardware. They stay right where they are in your home. A VPP works by linking these batteries together through software, allowing them to all respond to energy demand simultaneously.
When the electricity grid is under pressure, such as during a heatwave when everyone is running air conditioning, a VPP can tap stored energy in your home battery and share it with the grid. That helps keep power flowing to other homes and reduces the need to fire up gas plants or coal generators.
You don’t have to do anything in real time. Your VPP provider manages everything. They control when your battery releases stored power, based on the agreement you sign. In return, you receive payment for the energy your battery generates.
Joining a VPP does not stop your battery from powering your home. You still use your stored solar when you need it. The VPP steps in only when the grid requires support and only within the limits specified in your contract.
This setup helps you earn money, pay off your solar system faster, and support a cleaner, more stable electricity grid across NSW.
If you’re interested in learning a bit more about VPPs, you might want to check out the following article titled, What is a Virtual Power Plant (VPP)?
Let’s talk solar savings. Click here.
Do You Qualify for the Incentive, and What If You Don’t Have a Battery Yet?
To get the NSW Virtual Power Plant incentive, you need three things:
- Solar panels already installed on your home or business.
- A battery with a usable storage size between 2 and 28 kWh.
- A contract with a Virtual Power Plant provider that is part of the NSW scheme.
If you meet those three points, you’re eligible to apply for the incentive from 1 July 2025.
If you don’t already have a battery, that’s okay. You can still get a huge discount on your purchase.
From 1 July 2025, the Australian Government’s Cheaper Home Batteries Program will also be available. This program gives you a rebate on a new, approved battery system. Once your battery is installed, you can then connect it to a VPP and still claim the NSW incentive on top.
Just make sure the battery you install is compatible with a VPP. Batteries installed under the NSW Peak Demand Reduction Scheme are automatically eligible. If you’re unsure, ask your installer or chosen VPP provider before you sign anything.
You must also be connected to the electricity grid. If your property is completely off-grid, you won’t qualify for this incentive because VPPs only work with grid-connected batteries.
If you’re interested in learning a bit more about expanding your energy system, you might want to check out the following article titled, Expanding Your Solar Panel System with Batteries and Add-Ons.
Ready to go solar? Click here.
How Do You Choose the Right Virtual Power Plant Provider?
Not all Virtual Power Plant providers offer the same deal. Each provider sets its own terms, so it’s important to compare a few before you sign up.
Here’s what to look for when choosing a provider:
- How much will you get paid for the electricity your battery sends to the grid?
- When can the provider access your battery’s energy? Some might only use it during peak times, while others might want more access.
- How much of your battery’s storage will they use? You’ll want to know if they’ll drain your full battery or just a portion of it.
- How do they pay you? It could be cash, bill credits, or a discount on installation.
Some providers may also ask you to switch electricity retailers. Not all electricity retailers work with VPP systems, so be sure to check this before signing up.
As of now, these providers are offering the NSW incentive:
- AGL
- Amber
- Engie
- Globird
- Origin
- Powow
- Shinehub
These companies operate independently of the New South Wales Government. They decide which batteries to accept, which areas to service, and what contract terms to offer.
Call or visit the websites of at least two or three providers. Ask them to explain their contract in clear terms. If something feels unclear or rushed, keep looking.
If you’re interested in learning a bit more about Amber, you might want to check out the following article titled, Amber Energy Australia Explained: A Smart Way to Save (and Earn) with Solar Panels and Battery.
Get started with solar. Click here.
How Do You Sign Up and Claim the Incentive?
There are three main steps to claim the NSW Virtual Power Plant incentive and get connected.
Step 1: Choose a Virtual Power Plant provider
Start by contacting several VPP providers. Ask each one if they operate in your area and work with your battery model. You’ll also want to know how they pay you and what their contract terms are.
The provider will check if you’re eligible for the incentive and help you understand your options. Some might require you to switch electricity retailers, so check if you’re willing to do that.
Step 2: Sign the contract and nomination form
Once you choose a provider, they will give you two things:
- A contract that explains how and when they will access your battery.
- A nomination form that lets them apply for the incentive on your behalf.
You must sign both forms to start the process.
The provider should also give you a fact sheet and address any questions you have. If anything is unclear, ask them to explain it in simple terms. Do not rush this part.
Step 3: Complete onboarding and receive the incentive
If you’re happy with everything, the provider will send you an online form to finalise your registration. Once your details are confirmed, you will receive your incentive.
The provider will inform you of how you’ll receive your payment, specifying whether it’ll be in cash, as a bill credit, or in another form.
That’s it. Once connected, your battery becomes part of the VPP, and you start earning from both the upfront incentive and any energy your battery exports to the grid.
If you’d like to learn a bit more about what solar batteries are on the market, you might want to check out the following article titled, 6 Best Solar Batteries on the Market.
Let’s go solar today. Click here.
Wrapping Things Up: You Down with VPP?
The NSW Government’s Virtual Power Plant incentive is about to become one of the most valuable energy offers in the country.
If you have solar and are thinking about a battery or already have one, this is your chance to get more value out of your setup. Just make sure you check that your battery is eligible and take action after 1 July 2025 to lock in the higher rate.
At PSC Energy, we’ve walked hundreds of customers through questions about VPPs and solar batteries. If you’re interested in learning more about the NSW VPP rebate or the recently announced federal rebate, reach out. We’re here to help.
If you’re interested in learning a bit more about the federal solar rebate, also known as the Federal Cheaper Home Batteries Program, you might want to check out the following article titled, What the 2025 Federal Election and the Government Rebate Means for Solar Batteries in Australia.
FAQ
Can I claim the new incentive if I already got one last year?
No. If you claimed the NSW VPP incentive between 1 November 2024 and 30 June 2025, you cannot claim it again under the new rates. However, your provider may offer alternative incentives as a result of the change. It’s worth asking.
Can I combine this with the Cheaper Home Batteries Program?
Yes. Use the Australian Government’s Cheaper Home Batteries Program to get a battery discount. You can still claim the NSW incentive when you connect that battery to a VPP. This means you can reduce the cost of buying a battery and then get paid to connect it.
What is a Virtual Power Plant provider?
A VPP provider manages how your battery connects to the energy grid. They control how and when your battery sends power back to the grid. Each one offers different terms, so compare carefully before signing up.
What benefits will I get from joining a VPP?
You can get a one-time payment for signing up, plus regular payments or credits for any energy your battery shares with the grid. This helps you pay off your solar system more quickly and lower your bills. It also helps keep the grid stable and reduces the state’s emissions.
Do I need a specific battery size?
Yes. Your battery must have a usable storage capacity of between 2 and 28 kWh. The bigger your battery, the more you get from the upfront incentive.
Can I join if I live off-grid?
No. VPPs only work if your battery is connected to the electricity grid. Off-grid homes are not eligible.
What if I don’t have a battery yet?
You can still take part. From 1 July 2025, the Cheaper Home Batteries Program will offer a discount on the installation of an eligible battery. Once installed, you can then apply for the VPP incentive and start earning.
