The New South Wales (NSW) government is taking a transformative step toward a sustainable energy future with the launch of its NSW Solar Battery Rebate program. Officially rolled out on 1 November 2024, this initiative is part of the broader Peak Demand Reduction Scheme (PDRS) which aims to make home battery storage systems more accessible and affordable for residents and businesses across NSW.
This program is a game-changer for energy-conscious households. With battery prices dropping, feed-in tariffs diminishing, and increasing concerns about grid reliability, the addition of a government-backed rebate makes the transition to solar battery storage more compelling than ever.
In this comprehensive guide, we’ll delve into the details of the NSW Solar Battery Rebate program, explore its benefits, and explain how you can take advantage of this exciting opportunity to transform your energy future.
What is New South Wales PDRS?
The PDRS is a key initiative by the NSW Government aimed at promoting energy efficiency and reducing electricity consumption during peak demand periods. Launched in 2022, the PDRS is an integral part of the state's strategy to transition to a clean energy economy and achieve its ambitious target of net-zero emissions by 2050.
Eligible Technologies
The program supports a range of energy-efficient technologies, including:
- Energy-efficient appliances.
- Load-management systems.
- Battery storage systems for solar power.
Starting 1 November 2024, household batteries became a central focus of the PDRS, offering financial incentives to encourage their adoption and integration into Virtual Power Plants (VPPs), which allow stored energy to be shared across the grid, improving stability and efficiency.
Battery Storage Incentives
Participants installing eligible battery storage systems can receive rebates approximately ranging from $1,600 to $2,400 per battery, depending on the battery's size and capacity. Additionally, households connecting their batteries to VPPs can earn extra incentives, including:
- $250 to $400 at the time of connection.
- An additional $250 to $400 after three years of participation, provided the battery retains at least 6 years of warranty at the time.
Objectives
The PDRS seeks to:
- Reduce electricity consumption during peak periods and lower energy costs for customers.
- Avoid costly investments in new energy generation infrastructure.
- Lower greenhouse gas emissions.
- Enhance grid stability to better handle fluctuations in energy supply and demand.
Eligibility Criteria for the NSW Battery Rebate
The NSW Battery Rebate program is designed to be inclusive, providing broad eligibility criteria to benefit a wide range of residents and businesses across New South Wales. If you’re considering applying for this rebate, it’s essential to understand the specific requirements to qualify.
Who Can Apply?
Existing Solar System Owners
To be eligible, you must already have a rooftop solar system installed. The battery rebate is designed to complement existing solar setups by adding battery storage. While the rebate will not be available if you do not have an existing solar installation, it applies to homes and businesses installing solar and battery systems simultaneously, offering savings on both.
Homes and Businesses of Any Size
Whether you’re a homeowner or a business operator, the program is open to all property sizes within NSW.
Approved Installers Required
The battery must be installed by a supplier who is an Accredited Certificate Provider (ACP) under the PDRS. Installers must hold accreditation through Solar Accreditation Australia (SAA) to access the rebate.
Program Launch Date
Only installations completed on or after 1 November 2024 are eligible for the rebate.
Battery Requirements
The rebate is contingent upon selecting a battery that meets the stringent requirements set by PDRS.
Clean Energy Council (CEC) Approved List
Your chosen battery must appear on the CEC-approved product list.
Performance and Warranty Standards
The battery must:
- Retain at least 70% of usable capacity after 10 years.
- Offer at least a 10-year product warranty.
- Provide a minimum energy throughput of 2.8 MWh per kWh of usable installed capacity (will increase to 3.65 MWh on 1 April 2026)
Usable Capacity
The battery must have a usable capacity between 2 kWh and 28 kWh.
Operating Temperature
The battery must function within a temperature range of -10° C to 50° C, ensuring durability under various weather conditions.
Connectivity and Control
The battery must be capable of internet connectivity and third-party control to enable participation in Virtual Power Plants (VPPs).
Warranty for VPP Participation
Participation in a VPP must not void the battery’s warranty or reduce the guarantee of retaining 70% usable capacity after 10 years, and the battery must have a minimum 6-year warranty remaining.
How the NSW Solar Battery Rebate Works
The rebate amount is determined by the number of Peak Reduction Certificates (PRCs) your battery generates. PRCs are awarded for reducing grid demand during peak periods and are calculated using the NSW Government’s Solar Battery Certificate Calculator.
How PRCs Are Generated
The PDRS uses PRCs to incentivize peak demand reduction:
- PRC Creation: PRCs are generated when batteries store solar energy and reduce grid reliance during peak demand periods. The number of PRCs generated depends on the battery’s size, capacity, location within NSW, and integration with energy-efficient systems such as VPPs.
- Eligible Batteries: Batteries between 2 kWh and 28 kWh, such as the FranklinWH aPower, are eligible for PRC generation. PRCs can also be created by connecting existing batteries to VPPs.
- PRC Trading: PRCs are tradable assets similar to Renewable Energy Certificates (RECs). They are sold to electricity retailers or obligated parties, monetizing the energy savings achieved through reduced peak demand.
Rebate Amount
The value of the battery rebate is calculated by multiplying the estimated number of PRCs by the current PRC spot price (currently $2).
For example, the FranklinWH aPower is fully eligible for the rebate. A 13.6 kWh FranklinWH aPower X generates approximately 1,085 PRCs, which translates to a rebate of $2,170. If the battery is connected to a Virtual Power Plant (VPP), additional incentives come into play. The VPP connectivity generates an extra 164 PRCs, increasing the total rebate to $2,498. The added financial benefit encourages battery owners to participate in VPPs, which enhance grid stability and offer further savings.added financial benefit encourages battery owners to participate in VPPs, which enhance grid stability and offer further savings.
For those aiming to maximize their rebate, installing two FranklinWH aPowers at the same site on the same day, with a combined capacity of 27.2 kWh, can provide substantial financial benefits.
This setup takes full advantage of the rebate program, approaching the maximum eligible capacity of 28 kWh while remaining within the threshold. As a result, the system generates the highest possible number of PRCs allowed under the scheme, translating into a total rebate of $4,996 when the batteries are also connected to a Virtual Power Plant (VPP).
Key Points
- PRC Prices Can Fluctuate: The rebate value may vary with changes in the PRC spot price and specific conditions at the time of calculation.
- Eligible Battery Capacity: Only batteries within the 2 kWh to 28 kWh range qualify. Exceeding the maximum capacity of 28 kWh results in zero rebate.
- Confirm with Installers: Always verify the estimated rebate with your accredited installer to ensure accurate application.
Step-by-Step Guide to Accessing NSW Battery Rebate 2024
Step 1: Verify Your Eligibility
To access the rebate, you must:
- Be a resident or business owner in New South Wales (NSW).
- Have an existing rooftop solar system installed that complies with all relevant standards and regulations.
Step 2: Choose an Accredited Supplier
The rebate is only available through approved Accredited Certificate Providers (ACPs) under the Peak Demand Reduction Scheme (PDRS).
- Choose an installer accredited or partnered with an ACP.
- Get multiple quotes from different installers to ensure you get the best deal for your needs.
- Due to high demand, installation wait times may vary. Confirm your timeline with installers during the quote process.
Step 3: Obtain a Quote
- Use third-party comparison websites such as Energy Matters, Solar Quotes, or Solar Choice to find local installers and compare quotes.
- Double-check that your chosen installer is participating in the scheme. If not, you can recommend they partner with an accredited supplier.
Step 4: Choose an Eligible Battery
The battery you select must meet specific performance and warranty requirements under the scheme:
- Must be on the Clean Energy Council’s (CEC) Approved List.
- Should meet compatibility standards with your existing inverter. The FranklinWH aPower battery is compatible with all the solar inverter brands, streamlining your installation process.
- Consult with your installer to ensure the battery is both eligible and suitable for your energy needs.
Step 5: Sign the Nomination Form
Your installer will provide you with a nomination form, which allows the accredited supplier to receive the incentive from the NSW government.
- Sign and return this form before installation begins.
- You’ll also need to sign an installation contract provided by the installer.
Step 6: Organize Your Installation
Set an installation date with your chosen installer.
The installer will handle the submission of all necessary documents to your distribution network and electricity retailer to connect your battery to the grid.
Step 7: Connect to a Virtual Power Plant (VPP)
Maximize your rebate by connecting your battery to a VPP:
- Follow your installer’s guidance to set up the connection.
- Earn an additional $250 to $400 incentive at the time of connection, with another similar payment available after three years.
Benefits of Installing a Battery under the NSW Battery Rebate
Installing a battery under the NSW Battery Rebate offers a wide range of benefits:
1.Maximize Solar Energy Use
A battery lets you store excess solar energy for use at night or during overcast periods, reducing grid reliance and maximizing your solar investment.
2.Reduce Energy Bills
Using stored solar energy during peak demand lowers electricity costs and avoids low feed-in tariffs, saving money while powering your home.
3.Enhance Grid Reliability
Batteries stabilize the grid by managing peak demand, reducing brownouts and blackouts, and providing backup power during high-usage periods.
4.Protect Against Outages
Backup functionality ensures essential appliances stay powered during outages, minimizing disruptions or risks caused by power failures.
5.Support Grid Services Through VPPs
Connecting to a Virtual Power Plant (VPP) earns financial incentives and helps stabilize the grid with clean energy contributions.
6.Support the Renewable Energy Transition
Battery storage aids NSW in reducing emissions, supporting renewable integration, and achieving climate goals such as net zero by 2050.
Conclusion
The NSW Battery Rebate Program is a transformative opportunity for households and businesses to embrace energy independence, reduce electricity costs, and contribute to a cleaner, more sustainable future. By making solar battery installations more affordable, the rebate not only empowers individuals to maximize their solar investments but also strengthens the resilience and reliability of the electricity grid across New South Wales.
FAQs
1. Does the NSW government battery rebate get paid to the customer or accredited supplier?
The rebate is not paid directly to the customer. It’s provided as an upfront discount to the accredited supplier, who then passes it on to the customer.
2. What is an accredited supplier?
Accredited suppliers, also known as Accredited Certificate Providers (ACPs), are businesses approved by the scheme administrator (IPART) to conduct installations under the PDRS.
3. Does the installation cost include the battery itself?
Installers may quote the battery and installation costs separately or provide an all-inclusive price. Clarify inclusions and exclusions before agreeing to a quote.
4. Can I receive a rebate for a battery that’s already installed?
No, the NSW battery rebate 2024 is only for new battery installations. However, existing batteries with at least six years of warranty remaining may qualify for Virtual Power Plant (VPP) incentives.
5. Can I replace an existing battery or add more capacity and claim the NSW battery rebate 2024?
No, sites with existing batteries are not eligible for the rebate. Additional storage for existing systems also does not qualify but may earn revenue through VPP incentives.
6. Can I receive the NSW rebate 2024 if I’m off-grid?
No, the rebate is only for grid-connected batteries, as the PDRS aims to reduce electricity grid demand.