The Minns Labor 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).

The Australian Government will provide $10 million and the NSW Government will contribute $1 million. The Commonwealth funding is part of the Albanese Government’s recent $145 million expansion of the Social Housing Energy Performance Initiative.

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.

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.

The funding will be distributed through the NSW Social Housing Energy Performance Initiative which has recently been expanded with another $145 million in funding. The Initiative has already provided upgrades to around 400 homes in the Illawarra REZ, including the installation of 136 rooftop solar systems.

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.

As Australia's first urban REZ, the Illawarra REZ brings together the energy resources already installed on rooftops, in neighbourhoods and at industrial precincts to make our electricity system smarter and more reliable.

To complete the survey before 5pm Sunday 25 October 2026, visit www.energyco.nsw.gov.au/illawarra-rez-vpp-market-sounding.

Federal Assistant Minister for Climate Change and Energy, Josh Wilson said:

“People living in social housing should share in the benefits of cheaper, cleaner energy.

“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.”

NSW Minister for Energy Penny Sharpe said:

“We want more social housing tenants to share in the benefits of cheaper, cleaner energy, and this $11 million pilot will show how rooftop solar, batteries and virtual power plant technology can help lower their bills.

“The Illawarra is Australia’s first urban Renewable Energy Zone, making it the ideal place to trial practical solutions that support households with the cost of living.”

NSW Minister for the Illawarra and Member for Keira Ryan Park said:

“The pilot program is a triple win for the region. It could help more of our social housing tenants access the benefits of solar and battery technology, reduce their energy bills, and improve our energy reliability.

“This innovative initiative shows the Illawarra always steps up to play a vital role in shaping our renewable energy future.”

NSW Minister for Planning and Public Spaces and Member for Wollongong Paul Scully said:

“Households have an increasingly important role in improving energy affordability, reliability and sustainability.

“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.”

NSW Minister for Housing Rose Jackson said:

“Everyone deserves a comfortable home that is affordable to live in, and this pilot will help more social housing tenants access the benefits of solar, battery and virtual power plant technology.

“We are already supporting our social housing tenants with energy-efficient upgrades to ease cost-of-living pressures, and now we’re looking to connect them through to a virtual power plant and accelerate those bill savings.”

Federal Member for Cunningham Alison Byrnes said:

“The Albanese Government is working to bring down power bills for households, whether they own or rent, and I’m proud this investment will help more local people living in social housing reap the benefits of solar and battery power technology.

“The Illawarra is a proven leader when it comes to innovative clean energy, and I’m sure this pilot will have wide-reaching implications for renters across NSW and Australia.”