The NSW Empowering Homes battery loan — which previously offered up to $14,000 interest-free over 8 years — closed to new applications in 2025. The state's battery support is now delivered through two newer mechanisms: the PDRS battery incentive (a per-kWh point-of-sale rebate) and a one-off NSW VPP sign-on payment.
What the PDRS incentive pays
NSW's Peak Demand Reduction Scheme generates Energy Savings Certificates (ESCs) for accredited battery installations. In 2026, that translates to approximately $311–$344 per usable kWh of battery capacity installed, applied as a point-of-sale discount by the installer. On a 13.5 kWh battery, that's roughly $4,200–$4,650.
NSW VPP sign-on
Separately, NSW pays a one-off $1,500 sign-on incentive to homeowners who connect their new battery to a registered Virtual Power Plant. This is a separate program from the PDRS and is paid directly to the customer (not the installer).
Combined 2026 stack for a Sydney install
Federal STC (~$1,386) + federal Cheaper Home Batteries (~$3,483 on 13.5 kWh) + PDRS (~$4,388 on 13.5 kWh) + NSW VPP sign-on ($1,500) ≈ $10,757 in 2026 stack value on a typical solar + battery install in Sydney.