The New South Wales (NSW) government has announced enhanced incentives for homeowners and small businesses to install solar and home battery energy storage systems (BESS) that connect to virtual power plants (VPP). As of June 11, 2025, this updated scheme will replace the existing home BESS subsidy program, with the goal of making energy storage more accessible and affordable.
This initiative aligns with the Australian government’s AU$2.3 billion (US$1.5 billion) Cheaper Home Batteries Program, set to launch on July 1, 2025. According to recent insights, this subsidy is expected to create a highly competitive market for BESS across the country. The NSW government plans to implement its revised subsidy scheme on the same day as the national program’s launch.
Under this new scheme, households and small businesses can receive up to AU$1,500 to install a home BESS and connect it to a VPP. By utilizing both the Federal government’s Cheaper Home Batteries Program and the NSW government’s VPP scheme, participants can significantly increase their financial support. For instance, if a household installs a traditional 11.5kWh home BESS, the total combined incentives from both programs could reach nearly AU$5,000.
Chris Bowen, Australia’s Minister for Climate Change and Energy, highlighted that connecting more home BESS to the nation’s extensive rooftop solar photovoltaic (PV) systems will help lower energy bills. “We’ll help more people in New South Wales access cheap, fast, and safe solar energy in their homes and businesses, day or night, when they need it,” Bowen stated.
Additionally, by forming a VPP with their home BESS, households and small businesses can earn money by selling excess stored electricity. Electricity generated from a home BESS linked to a virtual power plant often commands a higher price than that from grid-connected solar PV, particularly during nighttime hours when electricity prices are elevated.
The updated VPP incentive scheme will replace the existing home BESS installation incentive in New South Wales. The Clean Energy Regulator will oversee the installation of home BESS under the Cheaper Home Batteries Program.
Earlier in June, Western Australia became the first state to introduce a new home BESS subsidy scheme in collaboration with the Federal government. Under the Household Battery Rebate Scheme, customers of Synergy can receive up to AU$5,000, while Horizon Power customers can benefit from up to AU$7,500 toward their home BESS installations. This initiative has a budget of AU$337 million.
In related news, Solar Media will host the Battery Asset Management Summit Australia 2025 on August 26-27 in Sydney. This summit aims to prepare the industry for future developments by exploring key asset management fundamentals, operational challenges, and the latest in optimization and software advancements. Attendees can enjoy a 20% discount on tickets using the code ESN20 at checkout.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/new-south-wales-enhances-home-battery-incentives-with-virtual-power-plant-program/
