Two incentives stack for NSW households in 2026: the federal Cheaper Home Batteries discount and the NSW Peak Demand Reduction Scheme (PDRS) incentive for joining a Virtual Power Plant. Here's how they work together.
The federal discount depends on the installation date, usable capacity, certificate price and provider fees. For May–December 2026 the factor is 6.8; at an assumed $40 per STC, a 13.5kWh system generates an estimated 91 certificates worth $3,640 before fees. Installers can apply the discount if you assign your STC rights to them, or you can choose to claim and trade certificates yourself.
The NSW VPP incentive varies by provider, capacity made available to the grid (up to 28kWh), and contract terms. Since 1 July 2026 eligible batteries can be up to 50kWh. Payments may be upfront, in instalments or bill credits. Compare written offers, backup reserves and exit terms before enrolling.
Many installers handle STCs after you assign your rights to them. Check the certificate price, fees and discount on your itemised quote. A VPP provider separately checks eligibility and provides its own contract. Use our calculator for a planning estimate and verify the federal rules and NSW VPP rules.