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NSW Battery Placement and 'rebate' eligibility Rules – What Homeowners Need to Know


Photo Credit: Tesla


Deciding to add a battery to your solar setup in NSW is a game-changer, especially with the NSW PDRS 'rebate' which was effective from 1 November 2024. It boosts energy independence and lets you capitalize on your solar power. But there’s more to it than just picking a battery and scheduling installation. Let’s talk about the NSW battery placement rules—because if you don’t get it right, you could miss out on both safety compliance and eligibility for the latest NSW battery incentives.


The Essential Rules for Battery Placement in NSW

New South Wales has clear safety standards for battery placement, outlined in AS/NZS 5139:2019. These are in place to ensure your battery is safe and your home is protected from potential hazards.


Indoor Placement: Mostly Off-Limits

If you were hoping to install your battery indoors, here’s what you need to know:

  • Batteries cannot be installed in living areas like bedrooms, kitchens, or lounges.

  • Installation in ceiling spaces, wall cavities, or under staircases is also restricted.

  • Avoid placing batteries in any emergency exit paths.


Best Bet: Outdoor Placement

Outdoor walls are your friend when it comes to battery installation, but even then, you need to be mindful:

  • If your house is made of combustible materials (e.g., weatherboard), you’ll need a non-combustible barrier between the battery and the house. The non-combustible material must cover 600mm on either side and 900mm above the battery.

  • Keep a 600mm clearance from doors and windows, and ensure 900mm clearance above the battery.

  • For brick houses, which are non-combustible by nature, these clearances still apply but generally make placement easier. If the room on the other end is a habitable room, the battery can’t be placed there if there is a window or door within 600mm to the side or 900mm from the top of the battery.


Additional requirements

if the battery is installed in the driveway or garage, you need to install bollards  to prevent accidental damage to battery systems from vehicles or heavy equipment and to be eligible for NSW Battery rebate.


Eligibility for NSW Battery Incentives

So, how does battery placement tie into rebates and incentives? To qualify for the NSW battery rebate under the Peak Demand Reduction Scheme (PDRS), your battery system must:

  • Be installed by an Accredited Certificate Provider (ACP).

  • Be compliant with AS/NZS 5139:2019 and other safety standards.

  • Meet specific installation criteria that include the placement rules mentioned above. Failure to follow these guidelines could disqualify you from receiving incentives.

Batteries that don’t meet the placement criteria may also fail inspections, which can impact your ability to claim certificates for rebates. These certificates, known as PRCs (Peak Reduction Certificates), are crucial as they help offset the cost of your battery through tradeable market value.

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