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NSW to cut power bills with new battery discounts for businesses

19 Aug, 2026



The New South Wales government has announced an energy initiative, slashing the upfront cost of battery installations for New South Wales businesses by 20 to 40 per cent in a bid to drive down operating expenses and ease grid pressure.

Starting September 1, eligible commercial and industrial operations will be able to access upfront discounts through government-accredited suppliers.

The financial incentives scale with battery size, covering capacity ranges from 20 kWh up to 30,000 kWh.

Under the scheme, a small enterprise such as a local grocery store installing a modest system could secure around AU$37,000 in savings, while a medium-sized operation, such as a dairy farm, could receive a discount of up to AU$355,000.

Residential apartment buildings are also set to benefit. Owners corporations for strata properties with four or more units can access discounts for shared-space batteries sized between 20 kWh and 200 kWh.

Minister for Climate Change and Energy Penny Sharpe said the initiative forms a key pillar of the state’s clean energy transition.

“NSW wants more batteries, and these changes will help more people cut their power bills, whether they are running a business or living in an apartment,” Sharpe said.

“The government will help businesses unlock major savings through renewable energy, reducing their long-term operating costs, improving competitiveness and supporting jobs across NSW.”

Businesses can combine the state discount with the federal government’s commercial rooftop solar scheme to maximise bill savings.

Furthermore, the state’s Virtual Power Plant (VPP) incentive has been expanded to include batteries up to 50 kWh. Small businesses and households connecting to a VPP could receive an extra incentive of up to AU$1,000 for feeding stored power back into the grid during peak demand windows.

The announcement comes as home battery uptake in NSW reaches record levels, with approximately 10,000 new units currently being installed every month.

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