$11m to supply clean energy for social housing tenants
An $11 million pilot program will demonstrate how rooftop solar, home batteries and virtual power plant technology can reduce power bills for social housing tenants in the Illawarra and create a more reliable electricity network for the region.
The NSW Government is delivering the Social Housing Virtual Power Plant pilot to support the rollout of solar panels and batteries for selected social housing properties in the Illawarra Renewable Energy Zone (REZ). Virtual power plants connect energy systems across multiple homes, allowing stored power to be used or exported when it is most valuable to households and the electricity grid.
“People living in social housing should share in the benefits of cheaper, cleaner energy,” said Federal Assistant Minister for Climate Change and Energy Josh Wilson.
“This $10 million Albanese government investment will help tenants reduce their power bills and make their homes more comfortable as they access the benefits of solar and batteries.
“It’s practical cost-of-living relief that can make a real difference to household budgets while supporting the smart transition to cheaper and cleaner energy.”
The Australian Government will provide $10 million and the NSW Government will contribute $1 million. The Commonwealth funding is part of the federal government’s recent $145 million expansion of the Social Housing Energy Performance Initiative.
The pilot will install rooftop solar panels and batteries on selected social housing properties, creating immediate cost-of-living benefits for residents. It will then connect them through a virtual power plant, which boosts the reliability of the electricity grid in the Illawarra.
“Households have an increasingly important role in improving energy affordability, reliability and sustainability,” said NSW Minister for Planning and Public Spaces and Member for Wollongong Paul Scully.
“With the country’s first urban REZ being developed in the Illawarra, it makes sense for our communities to see tangible benefits from the project using local solutions.”
A market sounding has opened to get feedback from solar and battery installers and virtual power plant operators to help shape the program’s design and delivery.
To complete the survey, visit the website before 5 pm on Sunday, 25 October 2026.
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