Households and small businesses in New South Wales will soon have access to almost $5,000 in upfront support for installing and connecting solar batteries, as the NSW and Australian Governments join forces to increase energy resilience and lower power bills.
The Commonwealth’s $2.3 billion Cheaper Home Batteries Program will offer discounts that reduce the cost of installing a battery system by around 30%, significantly lowering upfront costs. In addition, from 1 July 2025, NSW will nearly double its existing incentive for households and small businesses to connect batteries to Virtual Power Plants (VPPs)—bringing total upfront savings to nearly $5,000 for a typical 11.5 kWh system.
For larger systems like a 27 kWh battery, which normally costs over $30,000, households may receive a $10,000 discount from the federal program, plus up to $1,500 from NSW for linking it to a VPP.
Virtual Power Plants aggregate home and small business batteries, enabling users to sell excess energy back into the grid during peak demand. This not only generates revenue for battery owners but also stabilises the grid, reduces power outages, and supports broader net zero emissions goals.
The NSW Government’s incentive program has already seen over 11,400 installations in just six months, showing strong demand for household energy storage.
Eligible residents—including those who installed a battery after November 2024—can still access the new, higher VPP incentive starting in July. All installations must meet safety and quality standards set by the Clean Energy Regulator under the national battery program.
The initiative builds on Australia's leading rooftop solar uptake, with over one in three homes now generating their own power.