NSW households can cut the upfront cost of solar, batteries, heat pumps and air conditioners by stacking federal and state support. The federal government discounts solar panels and home batteries at the point of sale. The NSW Government adds a payment for joining a virtual power plant, upfront discounts on heat pumps and air conditioners, and zero-interest loans of up to $15,000.
This guide covers every incentive open to NSW homes and businesses right now, what feed-in tariffs are worth in 2026-27, and how to get quotes from local installers.
NSW at a glance (2026-27)
What | Current figure |
|---|---|
Federal solar discount (STCs) | About $1,600 to $1,800 off a 6.6 kW system |
Federal battery discount | About $252 per kWh for the first 14 kWh |
NSW VPP incentive | Typically around $36 per kWh, calculated on up to 28 kWh |
NSW heat pump discount | Up to $640 (replacing electric) or $330 (replacing gas) |
NSW air con discount | Up to $550 to $560 on a 6 kW system |
Home Energy Saver loan | Up to $15,000 at 0% over 10 years |
IPART feed-in tariff benchmark | 3.4 to 6.5c per kWh |
Free power window (Solar Sharer) | 11am to 2pm daily, up to 24 kWh |
Is solar worth it in NSW?
For most NSW homes, yes. A typical 6.6 kW system costs around $6,000 after the federal discount and can pay for itself in four to six years, depending on how much of the power you use at home.
How much power will solar panels make in NSW?
Each kilowatt of panels in Sydney produces about 3.9 to 4.0 kWh a day, averaged across the year. Inland areas such as Dubbo, Orange and Wagga Wagga usually do a little better thanks to clearer skies, while coastal output is close to Sydney’s.
System size | Average daily output (Sydney) | Yearly output |
|---|---|---|
6.6 kW | About 26 kWh | About 9,400 kWh |
10 kW | About 39 kWh | About 14,200 kWh |
13 kW | About 51 kWh | About 18,500 kWh |
Output is higher in summer and lower in winter. A north-facing roof gives the most output; east and west roofs produce less in total but spread generation across the morning or afternoon.
How much does solar cost in NSW?
Solar Choice’s October 2026 price index puts installed prices in Sydney at the following, after the federal STC discount and including GST.
System size | Standard offer | Premium offer |
|---|---|---|
5 kW | $4,990 | $5,960 |
6 kW | $5,750 | $6,750 |
7 kW | $6,450 | $7,640 |
10 kW | $8,780 | $10,490 |
A 6.6 kW system sits between the 6 kW and 7 kW prices. Regional prices vary with travel distance and roof type, so compare at least three quotes.
Worked example: savings from a 6.6 kW system in Sydney
- Yearly output: about 9,400 kWh
- Used at home (30%): about 2,800 kWh, saving around $930 at 33c per kWh
- Exported (70%): about 6,600 kWh, earning around $330 at 5c per kWh
- Total: roughly $1,260 a year, for a payback of about five years
Using more of your solar during the day, with timers, a heat pump or a battery, shortens that payback. Run your own numbers with our Solar + Battery Calculator.
NSW solar rebates and incentives in 2026
There is no standalone NSW solar panel rebate. Instead, NSW households combine federal discounts on solar and batteries with NSW Government incentives for batteries, hot water, air conditioning and energy bills. Most of these can be stacked.
| Incentive | Who runs it | What you get | Who can get it | Status |
|---|---|---|---|---|
| Small-scale Technology Certificates (STCs) | Australian Government | Upfront discount on solar panels, heat pumps and solar hot water | Any home or small business | Open, reduces each year to 2030 |
| Cheaper Home Batteries Program | Australian Government | About $252 per kWh off a new battery (first 14 kWh) | Homes, businesses, community groups | Open, steps down every 6 months |
| NSW VPP incentive | NSW Government (PDRS) | One-off payment for joining a VPP, calculated on up to 28 kWh | Homes and small businesses with a 2 to 50 kWh battery | Open |
| NSW heat pump incentive | NSW Government (ESS) | Up to $640 off replacing an electric water heater, up to $330 replacing gas | Homes and small businesses | Open |
| NSW air con incentive | NSW Government (ESS) | Up to $550 to $560 off a 6 kW system | Homes and small businesses | Open |
| Home Energy Saver loan | NSW Government | Up to $15,000 at 0% interest, repaid over up to 10 years | Owners and landlords, household income up to $210,000 | Open |
| Home Energy Saver discount | NSW Government | Up to $4,000 off energy upgrades | Household income up to $80,000 or concession card | Coming soon |
| Commercial battery incentives (BESS3, BESS4, BESS5) | NSW Government (PDRS) | Upfront discount on batteries from 20 kWh to 30 MWh | Apartment buildings, businesses, C&I sites | Open since 1 September 2026 |
| Energy bill rebates | NSW Government | $180 to $285 a year off power bills | Concession, Family Tax Benefit and Seniors card holders | Open for 2026-27 |
Federal solar discount (STCs)
When you install solar, your installer creates Small-scale Technology Certificates and takes their value off your quote. Most of NSW sits in STC zone 3. In 2026, a 6.6 kW system creates about 45 certificates, worth roughly $1,600 to $1,800. The number of certificates drops each January until the scheme ends in 2030, so the discount gets smaller every year.
Federal battery rebate (Cheaper Home Batteries Program)
The federal battery rebate is also paid through STCs and taken off your battery quote. Since 1 May 2026 the discount is tiered by battery size:
Usable capacity | Share of full rebate | Approx. value per kWh (May to Dec 2026) |
|---|---|---|
First 14 kWh | 100% | $252 |
14 to 28 kWh | 60% | $151 |
28 to 50 kWh | 15% | $38 |
Above 50 kWh | Nil | $0 |
The rate per kWh now drops every six months until the program ends in 2030. Batteries up to 100 kWh can still be installed under the program, but only the first 50 kWh attracts a rebate.
NSW battery rebate: the VPP incentive
The old NSW battery installation discount closed on 30 June 2025. NSW households now get battery support in two parts: the federal discount when the battery goes in, and a one-off NSW payment when they connect it to a virtual power plant (VPP).
How the NSW VPP incentive works
A VPP links home batteries together so a provider can draw on some of their stored energy when the grid is under pressure. The NSW Government pays an upfront incentive for signing up, on top of anything the VPP provider pays you over time.
- Battery size: more than 2 kWh and up to 50 kWh (from 1 July 2026)
- Calculation cap: the payment is based on usable capacity up to 28 kWh, so a 40 kWh battery gets the same as a 28 kWh battery
- Solar: no longer required for batteries onboarded from 1 July 2026
- Value: set by certificate prices and your VPP provider, typically around $36 per kWh, or roughly $360 for a 10 kWh battery and $1,000 for 28 kWh
- Limit: one claim per electricity meter (NMI)
- Not eligible: off-grid batteries, and batteries at apartment buildings funded under the NSW apartment battery incentive
Payment can come as cash, instalments or a bill credit, depending on the provider. Compare more than one VPP offer, because providers set different terms on how often they can use your battery and what they pay for exported energy. You can compare VPP offers here.
Stacking the federal rebate and NSW VPP incentive
| Usable battery size | Federal rebate (approx.) | NSW VPP incentive (approx.) | Combined |
|---|---|---|---|
| 10 kWh | $2,520 | $360 | $2,880 |
| 13.5 kWh | $3,400 | $490 | $3,890 |
| 20 kWh | $4,430 | $720 | $5,150 |
| 28 kWh | $5,640 | $1,010 | $6,650 |
Figures assume the May to December 2026 STC factor of 6.8 per kWh, STCs at about $37 and a VPP incentive of $36 per kWh. Your installer and VPP provider will confirm the exact amounts.
A Home Energy Saver loan can then cover the remaining cost at 0% interest. Read our full guide to the NSW battery incentive.
Heat pump, air con and home upgrade incentives
NSW heat pump hot water incentive
Replacing an old electric or gas hot water system with an efficient heat pump attracts an upfront discount under the NSW Energy Savings Scheme. The NSW Government lists indicative amounts of:
- up to $640 when replacing an electric water heater
- up to $330 when replacing a gas water heater
The discount is applied to your installer’s quote, and federal STCs usually come off the same installation as well. The installer must be an Accredited Certificate Provider (ACP) or work with one. See the full NSW heat pump incentive guide.
NSW air conditioner incentive
The Air Conditioner Upgrade Incentive takes money off a new energy-efficient reverse-cycle air conditioner, or off replacing an old unit. Indicative amounts are up to $550 for a new 6 kW system and up to $560 when a 6 kW split system replaces an old one. More efficient models attract a bigger discount. If your current air conditioner is already efficient, you may not qualify. See the NSW air con incentive guide.
Home Energy Saver: $15,000 interest-free loans
Launched on 17 June 2026, Home Energy Saver is a $557 million NSW Government program with two parts.
| Zero-interest loan | Discount | |
|---|---|---|
| Amount | Up to $15,000 per property | Up to $4,000 |
| Repayment | Up to 10 years, 0% interest | Not repaid (minimum $200 contribution) |
| Who | Owner-occupiers and landlords, combined taxable income up to $210,000 | Household income up to $80,000, or an eligible concession card |
| Delivered by | Brighte and Plenti | Creditex |
| Status | Open | Coming soon |
Eligible upgrades include rooftop solar, home batteries, heat pump and solar hot water, reverse-cycle air conditioning, induction cooktops, EV chargers, insulation, draught-proofing, double glazing and switchboard upgrades. Federal and other NSW incentives are taken off first, so you only borrow what is left. If you qualify for both the discount and the loan, apply for the discount first.
NSW energy bill rebates (2026-27)
| Rebate | Amount per year | Who it's for |
|---|---|---|
| Low Income Household Rebate | $285 ($313.50 on embedded networks) | Pensioner Concession, Health Care or DVA Gold Card holders |
| Seniors Energy Rebate | $200 | Commonwealth Seniors Health Card holders |
| Family Energy Rebate | Up to $180 ($198 on embedded networks) | Families receiving the Family Tax Benefit |
| Medical Energy Rebate | $285 | People who can't regulate body temperature |
| Gas Rebate | About $110 | Concession card holders with a gas account |
You can’t hold the Low Income Household Rebate and the Seniors Energy Rebate together. If you get the Low Income Household Rebate, the Family Energy Rebate drops to $20. Apply through your retailer or Service NSW.
Solar for apartment residents
Apartment owners and strata schemes can access separate NSW Government grants and the BESS3 apartment battery incentive. Strata committees should check eligibility before getting quotes, because the rules differ from those for houses.
NSW battery incentives for businesses and apartments
Since 1 September 2026, three new Peak Demand Reduction Scheme activities give upfront discounts on larger batteries. Solar isn’t required, but adding new solar within 90 days of the battery can lift the incentive.
| Activity | For | Battery size |
|---|---|---|
| BESS3 | Apartment buildings with 4 or more dwellings | 20 to 200 kWh (at least 5 kWh per dwelling) |
| BESS4 | Small and medium businesses | Over 20 kWh up to 200 kWh |
| BESS5 | Commercial and industrial sites | Over 200 kWh up to 30 MWh (incentive capped at 10 MWh) |
There is no fixed dollar amount. The discount depends on eligible capacity, inverter output, whether new solar is added and Peak Reduction Certificate prices on the day. Business batteries up to 50 kWh can also claim the VPP incentive. Read the full NSW commercial battery incentives guide.
NSW solar feed-in tariffs in 2026-27
There is no minimum feed-in tariff in NSW. Each retailer sets its own rate, and some standard contracts now pay nothing at all. IPART publishes a benchmark to show what solar exports are worth: for 2026-27 it’s 3.4 to 6.5c per kWh, down from 4.8 to 7.3c in 2025-26.
NSW feed-in tariff benchmark has fallen to 3.4 to 6.5c per kWh in 2026-27
IPART all-day benchmark range by financial year, cents per kWh. The lines show the low and high ends of the range.
The drop reflects lower wholesale prices in the middle of the day, when most solar is exported. Retailers don’t have to stay inside the range, so check your plan against it.
Time-of-day feed-in tariffs
Some retailers pay more for solar exported in the late afternoon and evening, when demand is high. IPART’s 2026-27 time-of-day benchmarks for the Ausgrid network show how wide the gap is:
Time window (Ausgrid) | Benchmark (c/kWh) |
|---|---|
10am to 3pm | 3.9 to 4.0 |
3pm to 4pm | 4.8 to 8.5 |
4pm to 9 pm | 17.2 to 18.7 |
9pm to 10am | 3.2 to 4.9 |
This is why a battery adds value in NSW: storing midday solar and using or exporting it in the evening is worth several times more than exporting it at noon.
Is a high feed-in tariff the best plan?
Not always. Plans with higher feed-in tariffs often come with higher usage or supply charges. Look at the whole plan, your usage and how much you export.
The NSW Solar Bonus Scheme (closed)
The Solar Bonus Scheme ran from 2010 and paid early solar owners 60c or 20c per kWh for every unit they generated. It closed to new customers in 2011 and ended on 31 December 2016. Former customers moved to retailer feed-in tariffs, which is why many older systems saw their solar credits fall sharply in 2017.
Electricity in NSW: networks, prices and switching
Who supplies your power?
Three distribution networks own the poles and wires in NSW. You can’t choose your network, but you can choose your retailer.
Network | Area covered |
|---|---|
Ausgrid | Sydney’s east, north and inner west, the Central Coast and the Hunter |
Endeavour Energy | Greater Western Sydney, the Blue Mountains, Southern Highlands and Illawarra |
Essential Energy | Regional, rural and remote NSW |
NSW electricity prices in 2026-27
The Default Market Offer (DMO) sets the maximum a retailer can charge customers on a standing offer. From 1 July 2026, residential DMO prices fell in all three NSW networks.
| Network | 2025-26 DMO | 2026-27 DMO (flat rate) | Annual usage assumed |
|---|---|---|---|
| Ausgrid | $1,965 | $1,899 | 3,900 kWh |
| Endeavour Energy | $2,411 | $2,328 | 4,900 kWh |
| Essential Energy | $2,741 | $2,604 | 4,600 kWh |
The DMO is a price cap, not a good deal. Market offers are often several hundred dollars a year cheaper, so it pays to compare energy plans.
The Solar Sharer Offer: free power from 11am to 2pm
Since 1 July 2026, larger retailers in NSW must offer a Solar Sharer plan with free electricity from 11am to 2pm every day, up to 24 kWh. You need a smart meter. Usage outside the free window and the daily supply charge are still billed, and those rates are usually higher than a standard time-of-use plan.
Solar Sharer suits households that can shift big loads into the middle of the day: EV charging, pool pumps, dishwashers, hot water or charging a battery from the grid. If you already have solar covering your daytime use, the free window adds less.
New rules for solar inverters: the Emergency Backstop Mechanism
From late 2026, new and upgraded rooftop solar systems up to 200 kW in NSW must be “backstop enabled”. This means the inverter meets the CSIP-AUS standard and is registered through the NSW CER Installer Portal, so networks can briefly reduce solar exports during rare grid emergencies, when directed by AEMO. The rollout runs by postcode and is due to cover all of NSW by early 2027. Existing systems aren’t affected unless they are upgraded. Your installer handles the registration.
Finding a solar and battery installer in NSW
Energy Matters connects NSW homes and businesses with up to three local installers from our network, at no cost and with no obligation. Installers then quote on your property directly.
What to check before you sign
- Accreditation. The installer should be accredited by Solar Accreditation Australia, and for NSW heat pump, air con or VPP incentives, be an Accredited Certificate Provider or work with one.
- Approved products. Panels, inverters and batteries should be on the Clean Energy Council’s approved lists, which is required for STCs and the battery rebate.
- Itemised discounts. Your quote should show STCs, the federal battery rebate and any NSW incentive as separate lines.
- Backstop compliance. New inverters must be CSIP-AUS compliant from late 2026.
- Warranties. Look for at least 25 years on panels, 10 years on inverters and 10 years on batteries, and check who honours them.
- Network approval. Your installer should apply to Ausgrid, Endeavour or Essential Energy before installation.
Solar in NSW cities and regions
Read more about solar panels and other renewable energy technology in your area:
NSW solar and battery FAQs
Is there a NSW solar rebate in 2026?
There is no NSW Government rebate for solar panels. NSW homes get the federal STC discount, usually $1,600 to $1,800 off a 6.6 kW system, and can borrow up to $15,000 interest-free through Home Energy Saver to cover the rest.
Is there still a NSW battery rebate?
The NSW battery installation discount closed on 30 June 2025. NSW households now get the federal Cheaper Home Batteries discount when the battery is installed, plus a one-off NSW VPP incentive when they connect it to a virtual power plant.
How much is the NSW VPP incentive worth?
The NSW Government doesn’t publish a fixed amount. It depends on your battery’s usable capacity, up to 28 kWh, certificate prices and your VPP provider. Recent offers have been around $36 per kWh, or about $360 for a 10 kWh battery.
Can I combine the federal battery rebate and the NSW VPP incentive?
Yes. Batteries up to 50 kWh installed under the Cheaper Home Batteries Program can also claim the NSW VPP incentive, provided they meet both sets of rules.
Do I need solar to get the NSW VPP incentive?
No. For batteries onboarded to a VPP from 1 July 2026, solar panels are no longer required. The battery must be grid-connected.
What is the feed-in tariff in NSW?
Retailers set their own rates, and there is no minimum. IPART’s 2026-27 benchmark is 3.4 to 6.5c per kWh. Some retailers pay more for evening exports, and some standard contracts pay nothing.
Who is eligible for the Home Energy Saver loan?
NSW owner-occupiers and landlords with a combined household taxable income of $210,000 or less. You can borrow up to $15,000 per property at 0% interest over up to 10 years, through Brighte or Plenti.
Can renters get NSW energy incentives?
Renters can’t get the Home Energy Saver loan, which is for property owners. With landlord approval, renters may be able to apply for the Home Energy Saver discount once it opens. Energy bill rebates and the Solar Sharer Offer are open to renters.
How much is the NSW heat pump rebate?
Up to $640 when replacing an electric water heater with a heat pump, or up to $330 when replacing gas, under the NSW Energy Savings Scheme. Federal STCs usually reduce the price further.
How much is the NSW air conditioner rebate?
Up to $550 for a new 6 kW energy-efficient system, or up to $560 when a 6 kW split system replaces an old unit. More efficient models get a larger discount.
What is the Solar Sharer Offer?
A plan that larger NSW retailers must offer from 1 July 2026, with free electricity from 11am to 2pm daily, up to 24 kWh. You need a smart meter, and other rates on the plan can be higher.
How long does solar take to pay for itself in NSW?
Usually four to six years for a 6.6 kW system, depending on its price, how much power you use during the day and your feed-in tariff.
NSW news and updates
Keep up to date with the latest renewable news and updates from New South Wales.
