If you’ve been thinking about adding a battery to your home solar system, 2025 might finally be your year. Two major government rebates, one federal and one state, are now offering thousands of dollars off eligible solar battery installations across New South Wales.
Each rebate has its own fine print. There are deadlines, system requirements, and technical limitations that installers often fail to explain clearly. Some systems qualify for both rebates. Others don’t. And if you install the wrong battery, through the wrong installer, or at the wrong time, you might miss out completely.
At PSC Energy, we understand how confusing the technical jargon surrounding battery rebates can be. With all the rules and requirements, you’ll want an installer that educates you before installing your system.
In this article, you’ll learn about the following:
- What Are the Two Main Solar Battery Rebates In 2025?
- Can You Combine Both Solar Battery Rebates?
- How Do the Solar Battery Rebates Get Applied?
- Which Solar Batteries Qualify?
- Can You Install a Solar Battery Now and Still Get the Rebate Later?
- What’s the Catch with VPPs?
- Why Some Solar Batteries Don’t Qualify
- Frequently Asked Questions
By the end of this article, you’ll know how these rebates work, how much money you could save, and what to watch out for. Let’s dive in.
What Are the Two Main Solar Battery Rebates In 2025?
1. The Federal “Cheaper Batteries for Homes” Program
This is the big new one. Announced in April 2025 and launching on 1 July, the federal rebate gives homeowners and small businesses an upfront discount of around $350 per kilowatt-hour (kWh) of usable battery storage. It applies to new installations of batteries with a capacity between 5 kWh and 50 kWh.
To give you a sense of the savings:
- A 10kWh battery could receive $3,500 off
- A 13.5kWh Tesla Powerwall 3 could receive $4,725 off
- A 24kWh SigenStor system could receive $8,400 off
- A 40kWh large system could receive the maximum $14,000+ rebate
But this is a one-time deal. You can only claim it once, and the claim only applies to battery capacity installed after 1 July 2025.
2. The NSW Peak Demand Reduction Scheme (PDRS)
NSW Battery Rebate Ends, New VPP Incentive Begins
The NSW Government has quietly confirmed that its upfront battery rebate, officially known as part of the Peak Demand Reduction Scheme (PDRS), will end on 30 June 2025. After that, it will be replaced by an expanded Virtual Power Plant (VPP) incentive starting 1 July 2025.
Key Dates and Limitations
- NSW battery rebate ends on 30 June 2025.
- Federal battery rebate begins on 1 July 2025.
- You cannot claim both for the same battery install.
- NSW attempted to make the two rebates stackable but ultimately failed to do so.
What This Means for Homeowners
- You can still technically apply for the NSW rebate until the end of June 2025.
- But in most cases, it now makes more financial sense to wait for the federal battery rebate.
- The NSW rebate program, despite over 11,400 installations, has struggled with rollout issues and limited availability.
Changes to the NSW VPP Incentive
- The previous VPP structure paid households twice: once when joining and again three years later.
- From 1 July 2025, the program shifts to a single upfront payment of up to $1,500, based on battery size.
- Example payments include:
- ~$550 for a 10kWh battery
- ~$1,500 for a 27kWh battery
- Estimated at roughly ~$55 per usable kWh
- Batteries must have a capacity between 2–28 kWh to qualify.
- The VPP incentive can be claimed alongside the federal battery rebate.
- If you already own an eligible battery, you may still qualify for the VPP incentive by enrolling through an Accredited Certificate Provider (ACP).
3. What About the Federal STC Rebate?
The federal Small-scale Technology Certificates (STCs) scheme has been in place for years. It remains one of the most valuable incentives for rooftop solar systems. While it’s not a battery rebate, it can significantly reduce the cost of installing solar panels on your home.
Here’s how it works:
- When you install a solar system with a capacity of less than 100kW, you are entitled to a certain number of Small-scale Technology Certificates (STCs) based on your system size and your location’s solar radiation rating.
- Each STC has a market value (usually between $30 and $40).
- Your installer calculates the total STC value at the time of quote and applies it as an upfront discount.
For a typical 6.6 kW solar system in Sydney, this can reduce the total cost by around $2,400–$2,800.
Important notes:
- STCs only apply to solar panels, not batteries.
- You can claim STCs in addition to the battery rebates.
- Like the battery rebates, STC values decline each year until 2030.
If you’re planning to add both solar panels and a battery system in 2025, you could be eligible for all three incentives:
- Federal STCs (solar)
- Federal battery rebate
- NSW battery rebate
This makes 2025 one of the most financially attractive years to go solar-plus-storage.
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.
Get started with solar. Click here.
Can You Combine Both Solar Battery Rebates?
Yes, but only under the right conditions.
The federal rebate applies to battery sizes of up to 50 kWh. The NSW VPP rebate applies only to the first 28kWh of storage. If you install a 24 kWh system, you will receive both rebates. However, if you go bigger (say 40 kWh), the NSW rebate cuts off at 28 kWh, while the federal one continues.
To stack the rebates, make sure:
- Your installer is accredited under both schemes.
- Your system is between 2kWh and 28kWh for the NSW VPP rebate.
- Your system is between 5kWh and 50kWh for the federal rebate.
- You install and commission the battery on or after 1 July 2025
PSC and other accredited installers can assist you in structuring this.
If you’re interested in learning a bit more about the VPP portion of the battery rebate, you might want to check out the following article titled, NSW Battery VPP Rebate Explained: What You Need to Know.
Ready to go solar? Click here.
How Do the Solar Battery Rebates Get Applied?
Both rebates are applied upfront. That means you don’t have to fill out a bunch of paperwork or wait months for a refund.
- The PDRS discount is applied to your quote by your preferred energy retailer with a VPP.
- The federal rebate works like the STC scheme: your installer claims it and reduces your quote.
You will see the federal discount reflected in the final quote before you sign; if you don’t, ask why. Any delay or omission could be a red flag.
Which Solar Batteries Qualify?
The federal rebate only applies to batteries that are:
- Between 5kWh and 50kWh
- Installed and turned on after 1 July 2025
- Virtual Power Plant (VPP) capable
- Approved by the Clean Energy Council (CEC)
Some popular examples:
- Tesla Powerwall 3 (13.5kWh, single-phase only)
- Enphase IQ Battery 5P (5kWh units, stackable to 50kWh)
- Sigenergy SigenStor (modular 8kWh units, three-phase available)
The NSW rebate has similar criteria but limits eligibility to systems with a capacity of under 28kWh and requires VPP participation.
Always check that your chosen system is on the current CEC-approved battery list. If it isn’t, you won’t get a cent.
If you’re interested in solar batteries, you might want to check out the following article titled, Are Solar Batteries Worth It in NSW? PSC’s Ultimate Guide for 2025.
Let’s talk solar savings. Click here.
Can You Install a Solar Battery Now and Still Get the Rebate Later?
Yes, if your installer follows the proper steps.
To qualify for the federal rebate, your battery must be:
- Installed before 1 July 2025
- Commissioned and turned on after 1 July, 2025
In other words, your installer can put the system in now, but they must wait to finalise the paperwork and power it on until the program is active.
This is already common practice among top installers.
What’s the Catch with VPPs?
Both rebates require the battery to be VPP-capable. That means it can be remotely monitored and controlled.
Here’s the breakdown:
- Federal rebate: Must install a VPP-capable battery, but joining a VPP is not required
- NSW rebate: Must install a VPP-capable battery and agree to remote access.
So yes, you can claim both rebates, but you might be giving up full control of your battery. To receive the VPP rebate, you must relinquish control of your battery when the grid needs a little juice.
Why Some Solar Batteries Don’t Qualify
This is a one-time offer. You can’t expand your battery later and claim another rebate. If you install a 10kWh battery now and add 10kWh more next year, you only get the rebate for the first 10kWh.
That’s why battery sizing matters. Select the full size you’ll need for long-term use. If you think your home may need more storage in future, install it now, not later.
Also, older batteries and some smaller brands might not qualify at all. You must check:
- Battery capacity
- CEC approval
- Installation date
- Installer credentials
If you’re interested in learning more about sizing solar batteries, you might want to check out the following article titled, What Size Solar Battery Do You Need?
Power up your savings. Click here.
Final Advice for NSW Homeowners
If you:
- Live in NSW.
- Are considering a solar battery in 2025.
- Want to claim the maximum possible rebate.
Then here’s your checklist:
- Choose a battery system with a capacity between 2 kWh and 28 kWh to maximise both rebates.
- Get a quote from a CEC-accredited installer.
- Install now if you want, but delay activation until after 1 July
- Decide whether to join a VPP (to get the NSW bonus)
- Size the system properly because you only get one shot
With the federal rebate winding down each year until 2030, 2025 is the sweet spot. You can claim the largest possible discount this year and secure significant energy independence while prices are still favourable.
Just don’t go it alone. At PSC Energy, we understand the rules and can help you get every dollar you’re entitled to. That’s it. No guesswork. No sales pitch. Just the facts. It’s what we do.
If you’re interested in learning a bit more about the price of solar batteries, you might want to check out the following article titled, How Much Are Solar Batteries? A Full Breakdown of Prices, Rebates, and Value in 2025.
Frequently Asked Questions: 2025 Solar and Battery Rebates in Australia
What is the federal battery rebate, and how much can I save?
The federal Cheaper Batteries for Homes program begins on 1 July 2025, and offers up to $372 per usable kWh on eligible batteries between 5 kWh and 50 kWh. For example, a 10kWh battery can receive $3,500 off, while a 13.5kWh Powerwall 3 could get $4,725 in savings.
When does the NSW battery rebate end?
The NSW battery rebate officially ends on 30 June 2025. After this date, it will be replaced by an expanded Virtual Power Plant (VPP) incentive offering up to $1,500 for eligible battery systems.
Can I get both the federal and NSW rebates?
Yes, but only under the right conditions. You must install a battery with a capacity between 2 kWh and 28 kWh, have it turned on after 1 July 2025, and use an accredited installer. The VPP rebate applies to up to 28 kWh, while the federal rebate covers up to 50 kWh.
How much is the NSW VPP rebate worth?
The VPP incentive will offer a one-time upfront payment of up to $1,500, depending on battery size. For example, a 10 kWh battery might receive approximately $550, and a 27 kWh battery could receive roughly $1,500.
Can I install my battery now and still get the rebate?
Yes. As long as your system is installed before 1 July but not commissioned or powered on until after 1 July, you will still be eligible for the federal rebate.
What about the STC solar panel rebate?
The Small-scale Technology Certificates (STCs) remain active and apply to rooftop solar installations with a capacity of under 100kW. You can combine STCs with both battery rebates. For a 6.6 kW solar system, you may receive $2,400–$2,800 off through STCs.
Do I have to join a VPP to get the rebates?
- Federal rebate: You must install a VPP-capable battery, but you are not required to join a VPP.
- NSW VPP rebate: You must join a VPP and allow remote control access to qualify for the state incentive.
Which batteries qualify for the federal rebate?
To be eligible, your battery must:
- Be between 5kWh and 50kWh
- Be VPP-capable
- Be installed and turned on after 1 July 2025
- Be Clean Energy Council (CEC) approved
Common eligible options include:
- Tesla Powerwall 3 (13.5kWh)
- Enphase IQ Battery 5P (stackable 5kWh units)
- Sigenergy SigenStor (modular 8kWh units)
What happens if I install a bigger system over 28kWh?
You can still receive the full federal rebate (up to 50 kWh), but the NSW VPP rebate will cap at 28 kWh. For example, with a 40 kWh system, you would lose the state portion by 12 kWh.
Can I add more batteries later and get another rebate?
No. The federal battery rebate is a one-time offer. You must size your system properly upfront. Adding capacity later won’t qualify for more rebates.
What should I check before signing a contract?
Make sure your installer:
- Is CEC-accredited
- Applies all rebates upfront in the quote
- Confirms your battery is eligible under current rules
- Understand how to delay commissioning if needed
Is 2025 the best time to install a solar battery?
Yes. With STCs, the federal rebate, and the final months of the NSW rebate/VPP incentive aligning, 2025 offers the highest possible discounts before rebates begin reducing each year until 2030.
