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Solar Rebates in New South Wales
Solar Rebates in New South Wales
Written by
Rachel Gregg
Edited by
Ellie Garran
Reviewed by
Julia PaszkaCompare Electricity & Gas Plans
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Long story short
Solar isn’t just for sun-drenched Sydney houses
Whether you own a freestanding home or an apartment in the city, there’s a solar setup (and rebate) that could work for you.
Panels? Battery? Apartment? There’s a rebate for that
From discounted batteries to grants for owners corps, NSW has a few ways to soften the switch to solar.
Don’t forget about the federal solar rebate
The Small-Scale Renewable Energy Scheme can be handled by your installer and can help take the sting out of those first big install costs.
What solar rebates are available in NSW?
If you were hoping there’d be a simple all-in-one rebate when it comes to installing solar, you’ll need to rub that genie lamp a little harder.
The NSW Government has offered some good rebates in the past, like the Rebate Swap for Solar initiative, the $7,000 solar rebate, and the Empowering Homes Program. Unfortunately, these rebates have wrapped up. But don’t stress, there are still a handful of solar rebates around to make a nice dent in your energy bills or up-front install costs.
NSW Virtual Power Plant (VPP) incentive
VPPs are like a team huddle of solar batteries that work as one during peak times on the main grid. If your battery has lots of juice in the tank while the main grid is struggling, a VPP lets you sell back your surplus energy. That way, you’re helping to lighten the load and pocket some extra cash.
If you’ve already got a solar battery, hooking it up to a VPP means you could earn an up-front payment, as well as ongoing rewards for sending excess energy back to the grid. Your up-front amount will depend on your battery size, your provider, and your contract. As an example, a 27 kWh battery could receive a maximum of $1,500. It can also be used alongside the federal government’s Cheaper Home Batteries Program discount.
Eligibility
To be eligible, you only need to tick off a few boxes:
- Battery that is compatible with a VPP
- Connection made through an Accredited Certificate Provider (ACP)
- Being an NSW homeowner or small business
How to apply
If you’re eligible, the next step is to get a few quotes from VPP providers. Since all providers have different conditions and prices, comparing will ensure you choose a match for your needs. Once you’ve signed your new contract and nomination form and finished the cooling-off period, your up-front payment should land.
Solar for Apartment Residents grant
While house owners are jumping on the solar train, apartment dwellers are often left behind. To help apartment residents feel the power of solar, this grant helps owners’ corporations get 50% of their solar installation costs covered. However, renters won’t be able to apply for this grant; that’s all up to the owners’ corporation.
Eligibility
To be eligible, you must:
- be a residential owners corporation looking after the strata management under the Strata Schemes Management Act 2015, or
- be a strata managing agent as described in the Strata Schemes Management Act 2015.
Your apartment building must:
- have between 3 and 55 residential lots
- be a completed development
- have not installed solar in the past 10 years
- be located in NSW
- be registered under the Strata Schemes Development Act 2015
- have an active strata insurance policy.
How to apply
Once you’ve made sure you meet all the requirements for this grant, all you need to do is apply through the NSW government site.
Small-scale Renewable Energy Scheme
The national Small-scale Renewable Energy Scheme helps take the sting out of those big up-front solar costs. Unlike other rebates, you won’t just get a flat rebate for installing your solar. The SRES is based on how much electricity your system is expected to generate or replace up until 2030 (when this scheme ends).
Instead of a cash-in-your-account rebate, you earn and sell STCs (small-scale technology certificates) based on your system’s output. These can be sold either by you or a registered agent. But don’t worry, it won’t be like trying to sell Beanie Babies post-2000. Energy retailers are obliged to purchase a set number of STCs, so there’s still a market for yours even as 2030 gets closer.
Eligibility
To be eligible for the SRES, your system needs to:
- have components listed on the Clean Energy Council (CEC) list of approved components
- create STCs within 12 months of install
- meet Australia/New Zealand standards
- be designed and installed by someone accredited by Solar Accreditation Australia (SAA)
- meet SAA design/install guidelines
- comply with local, state, and federal requirements
- be classified as a small-scale system.
How to apply
Once you’ve talked to an accredited retailer or installer, it’s down to them to fill in all paperwork. They’ll figure out how many STCs your panels will earn and get to work on applying the rebate as a discount on your bill. If you don’t want the help of an agent, you can create your STCs yourself, just make sure to do so within 12 months of your installation date.
Cheaper Home Batteries Program
For homes and small businesses that want to enhance their solar power system, the federal Cheaper Home Batteries Program offers a nice 30% discount on your battery costs. This can go a long way for these expensive additions to your system. Much like the SRES rebate, the exact figure of your rebate will depend on your solar battery’s capacity and the STCs created until 2030. But for most households, you’ll be looking at a solid 30% discount on your up-front bill.
Eligibility
To be eligible for this program, your battery system needs meet a few requirements. Some of these are:
- including a single battery unit or modular battery system
- having a capacity of between 5 and 100 kWh
- not having previously received a discount under this program
- being installed by an accredited installer/retailer
- meeting Australian standards
- having been independently tested to confirm safety standards.
How to apply
As a consumer, you won’t need to fill out any forms to get the discount. Just like the SRES, this will all be done by your accredited installer/retailer. Your discount should come through on your up-front installation bill, unless you decide to register for the discount yourself.
Is solar worth it in NSW?
Rebate or not, solar could be worth its weight in gold (or electricity bills that don’t make you wince). Based on 2023–24 figures, the average NSW household could cut its annual electricity bill of $2,106 by $1,015 with rooftop solar panels. It’s a long-term investment that can really pay off – you just need to balance a few different factors.
For starters, the size of your solar system plays its part in whether you’ll be paying it off in a few years or a decade. While there’s truth to the idea that bigger is better, you want to be getting value for money. And in the world of solar, that means self-consuming.
By relying more on the electricity your system generates, you reduce your need to buy electricity from the grid. Even if you still need to purchase electricity during peak usage or at night if you don’t have a battery, the more solar energy you use, the more you can save. It might mean adjusting your routine a little, like doing your washing or cooking during the day. But who knows, you might find a little shake-up is just what you need to save some electricity and make the most of your solar.
Just remember, size matters … but balance is key. You’ll want a solar system that’s big enough to meet your self-consuming needs but not so big that you’ll need to be a daytime power-using machine to break even. Getting quotes and advice from a few different solar retailers or using calculators like SunSPOT can be a good way to narrow down what your ideal size is.
Helpful tip
It can be hard enough to remember what you had for breakfast yesterday, let alone how much electricity you used last month. Finding ways to track your electricity use, like using apps or checking your bills, can help you keep an eye on your power consumption. Look for spikes in usage to understand what moves the needle on your bill. Then try to find a way you can use the appliance/charger during daylight hours when you’re generating solar energy.
Dean Ipaviz
Sustainability Expert and Presenter
What are some other ways solar can save me money?
Feed-in tariffs (FiTs) can also help chip away at your system costs sooner. A FiT is what your electricity retailer pays you for any excess electricity your solar setup puts back into the grid. So, if you’re not home during the day to use the power yourself, at least you can earn a bit back for it.
The caveat here is that retailers don’t actually have to give you a FiT, and the rates aren’t set in stone. The Independent Pricing and Regulatory Tribunal does keep tabs on FiT benchmarks, to give you a ballpark idea of what’s fair.
On that note, here are some previous flat-rate FiT benchmarks.
| Year | All day solar feed-in tariff (cents per kWh) |
| 2024–25 | 4.9 to 6.3 |
| 2023–24 | 7.7 to 9.4 |
| 2022–23 | 6.2 to 10.4 |
| 2021–22 | 4.6 to 5.5 |
| 2020–21 | 6.0 to 7.3 |
| 2019–20 | 8.5 to 10.4 |
| 2018–19 | 6.9 to 8.4 |
Where can I find and compare electricity plans?
If you’re keen to see your solar system paid off, even without the help of a rebate, changing electricity plans could help. Whether that’s moving to a plan with lower rates when you can’t generate electricity or finding a plan with higher FiTs, iSelect can help you compare a range of electricity plans from different providers. In just a matter of minutes, you can use our online comparison tool or speak with one of our energy comparison experts on 1800 664 532 and switch today.
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