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Photo Credit: Bluetti
If you already have an existing solar system or are thinking about going solar, you can now save thousands on adding a home battery with the NSW Government’s new incentive program. The NSW Government’s new battery incentive, launched on 1 November 2024, can help you save significantly on energy storage. This incentive encourages households to install batteries, aiming to reduce peak energy demand across the state. Here’s a breakdown to help you maximise this opportunity.
How the Battery Incentive Works
The NSW Peak Demand Reduction Scheme (PDRS) forms the basis of this rebate, where the value is calculated through Peak Reduction Certificates (PRCs). Unlike a direct rebate, the discount you receive is based on the tradeable market value of PRCs – these can fluctuate between $1 and $2.45 per certificate/PRC. The number of PRCs issued depends on your battery’s capacity, location, and potential connection to a Virtual Power Plant (VPP), which can increase PRC value.
Through this incentive, Electrifying Australia partners with Accredited Certificate Providers (ACPs), who verify installations and issue PRCs, providing customers with an upfront discount on their battery purchase.
Battery Rebate Amounts – How Much Can You Save?
The rebate amount varies and is determined by the current PRC value, your battery’s usable capacity, and whether it’s connected to a VPP. The general rule of thumb for battery installation rebate is $130/kWh. An additional rebate of approximately $25/kWh will be given when you connect the battery to a VPP.
Here’s a quick example:
For a Tesla Powerwall 3 (13.5 kWh usable capacity) installed in Sydney’s 2000 postcode, a customer could receive approximately 1,077 PRCs. At the current PRCs value, this translates to a $1755 base rebate. Connect the battery to a VPP, and an additional 163 PRCs can be issued, adding $337 to the rebate – bringing the total discount to $2,092.
Eligibility Requirements for Batteries
To qualify for the NSW battery rebate, batteries must:
Capacity: Offer 2-28 kWh usable capacity.
Warranty: Have at least a 10-year warranty with a 70% retention rate for usable capacity.
Temperature Range: Operate within a minimum ambient temperature range of -10°C to 50°C.
Energy Throughput: Meet a minimum of 2.8 MWh per kWh of usable capacity.
Connectivity: Be internet-enabled and VPP-compatible for demand response control.
Check out our previous post about NSW battery rebate for more information about battery eligibility for a rebate.
VPP Incentive Details
With the VPP incentive, batteries between 2 and 28 kWh can qualify for additional PRCs. Homeowners can access this incentive twice over the battery’s lifespan, provided there is a 3-year gap between claims. If you join a VPP with an existing battery, it must have at least 6 years of warranty remaining and meet all current requirements. VPP incentives may be issued as direct discounts, bill credits, or instalments depending on the arrangement with your VPP provider.
Take Action Now – Interest is High!
Given the high demand for this incentive, it’s advisable to act soon. Electrifying Australia has expert installers who can guide you through the process and ensure you maximise the available savings. Start by requesting a quote, or enquire now!
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