Switching to solar energy in New South Wales (NSW) is a smart move for your wallet and the environment. With rising electricity costs and a push towards renewable energy, the NSW Government, alongside federal incentives, offers a range of rebates and loans to make solar systems more affordable. This guide breaks down everything you need to know about the NSW Solar Rebate in 2025, including eligibility, interest-free loans, new battery rebates, and how to maximise your savings.

What is the NSW Solar Rebate?

The NSW Solar Rebate is a collection of financial incentives designed to reduce the upfront cost of installing solar panels and battery storage systems. These incentives primarily come from the federal Small-scale Renewable Energy Scheme (SRES), which provides Small-scale Technology Certificates (STCs), and state-based programs like the Peak Demand Reduction Scheme (PDRS). Together, they can cut installation costs by up to 30–33%, depending on your system size and location. The rebates are applied as a point-of-sale discount, meaning you pay less upfront when purchasing through an accredited installer.

Check Your NSW Solar Rebate Eligibility

To qualify for the NSW Solar Rebate, you need to meet specific criteria:

Household Income: Your combined household income must be under $180,000 annually.
Property Value: The property must be valued at less than $3 million.
System Requirements: The solar system must use Clean Energy Council (CEC)-approved components and be installed by a CEC-accredited installer.
Location: You must be a resident or business owner in NSW with a grid-connected property.
Low-Income Households: If you’re receiving the Low Income Household Rebate (LIHR) and hold a Pistol or Department of Veterans’ Affairs Gold Card, you may be eligible for additional benefits, such as a free 3kW solar system through the Rebate Swap for Solar program.

For battery rebates, you must have an existing solar system (or install one simultaneously) and use an approved supplier like Solar National. You can check your eligibility on the NSW Government’s Energy website or use their eligibility tool.

Interest-Free Loans for Solar Systems

NSW offers interest-free loans to make solar more accessible, particularly for low-income households. These loans help cover the upfront cost of solar panels or battery systems, allowing you to spread payments over time while enjoying energy savings from day one. Key details include:

Loan Amount: Up to $14,000 for eligible households, depending on the system.
Eligibility: Similar to rebate criteria, focusing on low-income households or those receiving the LIHR.
Repayment: Loans are typically repaid over several years, and savings on electricity bills can offset the cost.

Note that the Empowering Homes Program previously offered these loans has closed, but similar state initiatives continue in 2025. Always check with Service NSW for the latest loan options.

New Solar Battery Rebates (Effective November 2024)

From 1 November 2024, the NSW Government offers up to $2,400 in rebates under the Peak Demand Reduction Scheme (PDRS) battery rebate to promote energy storage. This transformative initiative empowers households to store excess solar energy, slash reliance on the grid, and embrace a sustainable future. Here’s what you need to know:

Rebate Amount: $1,600–$2,400, based on the battery’s usable capacity (2kWh–28kWh).
Virtual Power Plant (VPP) Incentive: Connect your battery to a VPP and earn an additional $250–$400, claimable twice with a three-year gap.
Eligibility: You must have an existing solar system or install one simultaneously, use an accredited installer, and meet safety standards.
How to Apply: Accredited Certificate Providers (ACPs) apply the rebate as a discount. Compare quotes to ensure the discount is included.

Batteries like the Tesla Powerwall 2 or 3 are eligible. They offer storage capacities of 13.5 kWh or more, ideal for powering your home during non-sunlight hours.

Benefits of Adding a Battery System

Adding a battery to your solar system unlocks significant advantages:

Energy Independence: Store excess solar energy at night or during blackouts, reducing reliance on the grid.
Cost Savings: With time-of-day metering, you can use stored energy during peak hours (2 pm–8 pm) to save up to 52 cents per kWh.
VPP Income: Earn extra income by sharing stored energy with the grid through a VPP.
Environmental Impact: Lower your carbon footprint by maximising renewable energy use.

A typical household with a 6.6kw solar system and a 13.5kWh battery can cover over 70% of its electricity needs, with a payback period of 4–6 years.

Significant Benefits of Solar Panel Rebates in NSW

Solar panel rebates offer more than just cost reductions:

Lower Energy Bills: A 6.6kw system can save $2,300–$2,500 annually, depending on location and usage.
Increased Property Value: Solar-equipped homes are more attractive to buyers, boosting resale value.
Feed-in Tariffs (FiTs): Depending on your retailer, you can earn 0–22 cents per kWh for excess energy fed back to the grid.
Environmental Contribution: Support NSW’s goal of net-zero emissions by 2050 by reducing reliance on fossil fuels.

Solar is a cost-effective way to achieve energy independence, with rebates covering up to 33% of installation costs.

Keep in mind, the solar rebate is designed to reduce by approximately 4 to 5% each year. If you’re planning to make the switch, now is the ideal time to take advantage of the current incentives and maximise your savings upfront.

Updated STC Rebates for Different Solar System Sizes

The federal STC scheme provides rebates based on system size, location, and the market value of STCs ($35–$40). Below are approximate rebates for NSW (Zone 3) in 2025, assuming an STC value of $37:

1.5kw System: $999–$1,110 (27–30 STCs)
3kw System: $1,998–$2,220 (54–60 STCs)
5kw System: $3,330–$3,700 (90–100 STCs)
6.6kw System: $4,329–$4,884 (117–132 STCs)
10kw System: $6,660–$7,400 (180–200 STCs)

These values decrease by 4–5% annually as the SRES phases out towards 2030, so acting sooner maximises savings. Use an STC calculator or consult your installer for precise estimates.

Steps to Avail NSW Government Solar Rebates

Follow these steps to claim your solar rebates:

Check Eligibility

Visit the NSW Government’s Energy website to confirm you meet the criteria. Use their online eligibility tool to verify household income, property value, and location requirements. Ensure you have the necessary documents, like proof of income or a concession card, ready.

Choose an Accredited Installer

Select a Clean Energy Council (CEC) accredited installer to ensure compliance with safety and quality standards. Research multiple providers to compare expertise and customer reviews. Verify their accreditation on the CEC website.

Get a Quote

Request a detailed quote that lists the STC rebate, battery incentives (if applicable), and total costs. Ensure the quote specifies CEC-approved components and installation timelines. Compare at least three quotes to secure the best deal.

Install the System

Schedule the installation with your chosen accredited provider. Confirm that the system meets all technical requirements for rebates, such as grid connectivity. Keep records of the installation process, including contracts and receipts.

Claim the Rebate

Your installer typically handles STC paperwork, applying the rebate as a point-of-sale discount. For battery rebates, ensure the quote includes the PDRS discount and verify with the installer. Double-check that all rebates are correctly applied before payment.

Apply for Additional Incentives

If eligible, submit applications for interest-free loans or Virtual Power Plant (VPP) incentives through Service NSW. Provide any required documentation, such as proof of an existing solar system for battery rebates. Track your application status online for timely approval.

What is the $7,000 Solar Rebate in NSW?

The $7,000 solar rebate was a popular NSW Government incentive to make solar affordable, but it will no longer be available in 2025. It has been replaced by the STC scheme and PDRS battery rebates, which offer up to $3,000 for solar panels and $2,400 for batteries, plus VPP incentives. While the $7,000 rebate is gone, the current incentives still provide substantial savings, especially when combined with FiTs and loans.

Maximise Your Solar Savings

To get the most out of your solar investment:

Act Quickly: STC rebates decrease annually, so installing in 2025 secures higher savings.
Size Your System Correctly: Work with your installer to choose a system that matches your energy needs, maximising FiTs and self-consumption.
Join a VPP: Earn extra income by connecting your battery to a VPP.
Change Energy Habits: To reduce grid reliance, use appliances during peak solar production hours (10 am–2 pm).
Compare Retailers: Shop for electricity plans with competitive FiTs to boost returns on excess energy.

A 6.6kW system with a battery can achieve a payback period of 4–5 years, with long-term savings continuing for decades.

Final Thoughts

The NSW Solar Rebate in 2025 offers a golden opportunity to reduce energy costs and contribute to a sustainable future. With STC rebates, new battery incentives, and interest-free loans, there’s never been a better time to go solar. By choosing an accredited installer, comparing quotes, and acting quickly, you can unlock significant savings and enjoy energy independence for years. Visit the NSW Government’s Energy website or contact a CEC-accredited installer to start your solar journey today.

Frequently Asked Questions (FAQs)

What is the NSW Solar Rebate in 2025?

The NSW Solar Rebate in 2025 refers to financial incentives that reduce the cost of installing solar panels and battery storage systems. It primarily includes the federal Small-scale Renewable Energy Scheme (SRES), which offers Small-scale Technology Certificates (STCs) to offset up to 30–33% of installation costs for systems under 100kw. Additionally, the NSW Government’s Peak Demand Reduction Scheme (PDRS), effective from November 2024, provides battery rebates of $1,600–$2,400, plus $250–$400 for Virtual Power Plant (VPP) participation. Accredited installers apply these rebates as point-of-sale discounts, making solar more affordable.

Who is eligible for the NSW Solar Rebate?

Eligibility for the NSW Solar Rebate depends on the specific program. For the federal STC rebate, you must install a solar system under 100kW using Clean Energy Council (CEC)-approved components and an accredited installer. The system must be grid-connected and installed at a residential or small business property in NSW. For the PDRS battery rebate, you need an existing solar system (or install one simultaneously), a household income below $180,000 annually, and a property valued under $3 million. Low-income households receiving the Low Income Household Rebate (LIHR) and holding a Pensioner Concession Card or Department of Veterans’ Affairs Gold Card may qualify for additional benefits, such as the Rebate Swap for Solar, which provides a free 3kW system. Renters can apply with landlord permission, but some programs are homeowner-exclusive. Check eligibility using the NSW Government’s online tool on their Energy website.

How much can I save with the NSW Solar Rebate?

Savings depend on system size, location, and the type of rebate. Under the SRES, STC rebates cover roughly 30% of solar panel installation costs. For a 6.6kW system in NSW (Zone 3), you can save $4,329–$4,884 (117–132 STCs at $37 each). Larger systems, like a 10kW setup, can yield $6,660–$7,400. The PDRS battery rebate offers $1,600–$2,400 for batteries with 2kWh–28kWh capacity, plus $250–$400 for VPP participation, claimable twice with a three-year gap. Combining both can save up to $7,000 for a solar-and-battery system. Additional savings come from reduced electricity bills (up to $2,500 annually for a 6.6kW system) and feed-in tariffs (FiTs) of 0–22 cents per kWh for excess energy. Low-income households may save $600 annually with a free 3kW system via the Rebate Swap.

How do I apply for the NSW Solar Rebate?

Applying for the NSW Solar Rebate is straightforward, as installers typically handle the process. First, confirm eligibility on the NSW Government’s Energy website. Choose a CEC-accredited installer and request a quote detailing STC and PDRS rebates. Sign a contract if satisfied, and the installer will install the system and apply the STC rebate as a point-of-sale discount. For battery rebates, ensure the quote includes the PDRS discount, applied by Accredited Certificate Providers (ACPs). For additional incentives like VPP payments or interest-free loans, submit applications via Service NSW, providing documents like proof of income or existing solar installation. Keep records of all contracts and communications. Compare multiple quotes to ensure the best deal, as rebates are deducted upfront, reducing your initial payment.

Is the $7,000 Solar Rebate still available in NSW?

The $7,000 Solar Rebate, introduced in 2019 to promote solar adoption, is no longer available in 2025. It was a limited-time program with a $15 million budget, expanded in 2024 with an additional $40 million, but has since been exhausted. Current incentives include the STC rebate (up to $4,884 for a 6.6kW system) and the PDRS battery rebate ($1,600–$2,400), which together can still save up to $7,000 for a combined solar-and-battery system. Low-income households can access the Rebate Swap for Solar, swapping a $285 annual LIHR for a free 3kW system, potentially saving $600 yearly. While not as high as the $7,000 rebate, these programs make solar affordable. Check Service NSW for updates on new initiatives.

Can I combine state and federal solar rebates?

Yes, you can combine NSW state rebates (like the PDRS battery rebate) with federal STC rebates to maximise savings. The STC rebate, part of the SRES, reduces solar panel costs by up to 33%, while the PDRS offers $1,600–$2,400 for battery installations. For example, a 6.6kW solar system with a 13.5kWh battery could save $4,329–$4,884 (STCs) plus $2,400 (PDRS), totaling over $7,000. Additional VPP incentives ($250–$400) and feed-in tariffs (0–22 cents per kWh) further boost savings. Local council rebates, such as Randwick City Council’s 10% rebate (up to $500 for households), can also be stacked if available. Ensure all components and installers are CEC-accredited to qualify for both schemes.

Do solar panels increase my property value in NSW?

Yes, installing solar panels can increase your property’s value in NSW. Homes with solar systems are more attractive to buyers due to lower electricity bills and environmental benefits. Studies suggest solar-equipped homes can sell for 3–4% more than comparable non-solar properties, depending on system size and age. A 6.6kW system, saving $2,300–$2,500 annually, signals long-term cost savings to buyers. The Rebate Swap for Solar, offering a free 3kW system, can enhance value for low-income households. However, the increase depends on market trends and system condition—well-maintained systems with warranties add more value. Consult a local real estate agent to assess impact in your area.

Can renters claim the NSW Solar Rebate?

Renters can claim the federal STC rebate if they have landlord permission to install a solar system, as it applies to any grid-connected property meeting CEC standards. The installer applies the rebate as a discount, benefiting the renter or landlord depending on who pays for installation. However, state programs like the Rebate Swap for Solar or PDRS battery rebates are typically limited to homeowners or tenants with long-term leases, as they require property ownership or significant investment. Renters should negotiate with landlords, as solar can reduce electricity bills (e.g., $600 yearly for a 3kW system) and increase property value. Check with Service NSW for renter-specific options and ensure the installer is CEC-accredited.

How long does it take to receive the NSW Solar Rebate?

The NSW Solar Rebate is a point-of-sale discount, so you receive the savings immediately upon installation. For STC rebates, the installer deducts the rebate (e.g., $4,329–$4,884 for a 6.6kW system) from the quoted price, reducing your upfront payment. Similarly, PDRS battery rebates ($1,600–$2,400) are included in the installer’s quote by Accredited Certificate Providers (ACPs). As installers handle the paperwork, no separate application is needed for these discounts. For additional incentives like VPP payments or interest-free loans, approval through Service NSW may take 2–4 weeks, depending on documentation. Ensure all quotes clearly list rebate amounts to avoid delays.

Will the NSW Solar Rebate decrease in the future?

Yes, the federal STC rebate will decrease annually until it phases out by 2031, as part of the SRES. Each year, the number of STCs awarded drops by approximately 4–5%, reflecting the declining cost of solar technology. For example, a 6.6kW system in NSW earns 117–132 STCs in 2025 (worth $4,329–$4,884), but this could drop to $3,800–$4,300 by 2026. The PDRS battery rebate, launched in November 2024, has no announced end date but may be revised based on funding. To maximise savings, install your system in 2025 while rebates are higher. Monitor the NSW Government’s Energy website for updates on state incentives.

NSW Solar Rebates in 2025: Everything You Need to Know