Solar advertising is full of the word "rebate", usually without saying which one or what it is worth. There are four separate things a NSW household can currently use, and most of them can be combined on the same installation. Here is what each one is.
1. The federal solar discount (STCs)
Small-scale Technology Certificates are created when an eligible solar system is installed, and their value is taken off the purchase price as an upfront discount. The number of certificates depends on the system size and where you live. This is not a cash payment from the government and it is not means tested. The scheme steps down each year and finishes at the end of 2030, so the discount on the same system shrinks slightly every January.
2. The Cheaper Home Batteries discount
Since July 2025 home batteries have had their own federal discount, also delivered through certificates and also applied as an upfront reduction. Key points as they stand:
- Batteries with usable capacity from 5 kWh to 100 kWh are eligible, with support counted on the first 50 kWh
- The support is weighted towards smaller systems: the full rate applies to the first 14 kWh, a reduced rate from 14 to 28 kWh, and a much smaller rate above that
- The certificate rate now steps down twice a year, in January and July, rather than annually
- The battery must be capable of joining a virtual power plant, though you are not forced to join one for the federal discount
- It is one discount per property, and it applies to a battery added to existing solar as well as a new system
As a rough guide the battery discount has been landing near 30 per cent of the upfront cost of a typical home battery. Because the rate drops twice a year, ask for the current figure for your exact battery rather than relying on an old quote or a website number.
3. The NSW virtual power plant incentive
NSW pays a one-off incentive for connecting an eligible battery to an approved virtual power plant, delivered through the state Peak Demand Reduction Scheme. A virtual power plant lets your provider draw on your battery at times of peak grid demand in exchange for the payment and, usually, ongoing credits. The amount depends on your usable capacity and which provider you sign with. Since July 2026 you no longer need solar panels to qualify.
It is worth understanding the trade-off before signing: during a VPP event your battery may be discharged to the grid rather than saved for your evening use. Good providers cap how often that happens and let you reserve a minimum charge.
4. The NSW Home Energy Saver loan
This is finance rather than a discount: interest-free loans of up to $15,000 for eligible owner-occupiers and landlords, repaid over ten years, for energy upgrades including solar and batteries. Household income limits apply. For many people it turns a large upfront cost into a repayment that is close to the bill saving.
Can you use them all together?
Generally yes. A typical NSW home installing solar and a battery can take the federal solar discount, the federal battery discount and the NSW virtual power plant incentive on the same job, and fund the balance with the interest-free loan if eligible. What you cannot do is claim the same federal battery discount twice on one property.
Who has to install it for the discounts to apply
The certificate-based discounts only exist if the system is designed and installed by a person accredited under the Solar Accreditation Australia scheme, using equipment on the Clean Energy Council approved product lists. Accredited installers must also hold an unrestricted electrical licence. If a quote is vague about accreditation, ask for the number and check it.
Questions worth asking any solar quote
- What is the total price after the certificate discounts, in dollars?
- What certificate rate has been assumed, and what happens if the install slips past the next step-down date?
- Who is the accredited designer and installer, and what is their accreditation number?
- Is the equipment on the CEC approved lists?
- Does my switchboard or supply need upgrading, and is that included?
- What is covered by workmanship warranty, and what falls back on the manufacturer?
We are happy to answer all six for our own quotes, and to sanity check someone else’s. Call us and we will go through it with you.