NSW Solar Battery Rebate is Live

November 08 2024

The new Home Battery Rebate for NSW is a financial incentive from the government to encourage folks to purchase solar batteries. We need to adopt renewables and move away from burning fossil fuels, and this rebate scheme is encouraging everyone to do so.

The incentive is now available and officially started on 1st November 2024. It’s currently called the Peak Demand Reduction Scheme Amendment, but surely that will be rebranded for the ease of, well, everyone.

The NSW solar battery rebate is a financial incentive designed to make battery storage more affordable for homeowners with existing rooftop solar systems. The rebate comes in two forms:

Battery Installation Rebate: Depending on the size of the battery installed, homeowners can receive between $1,600 to $2,400 off the upfront installation costs. This rebate directly reduces the initial financial burden of purchasing and installing a solar battery. Currently, the exact value of the rebate will depend on the battery certificate value at the time of installation.
Virtual Power Plant (VPP) Incentive: Homeowners who connect their batteries to a VPP can receive an additional $250 to $400. This incentive is available twice, with a minimum of three years between claims.
Important Note: The rebate is not a direct payment to the homeowner. Instead, the accredited supplier who installs the battery and/or manages the VPP connection provides it as an upfront discount.

For more details on the NSW Government Home Battery Rebate, visit the NSW Government website

TO QUALIFY FOR THE BATTERY REBATE, NEW BATTERY INSTALLATIONS MUST MEET THESE REQUIREMENTS:

Only customers who already have a solar system or are installing one can apply.
The property must not currently have a battery installed, and eligibility for each address is determined by the National Meter Identifier (NMI).
The battery needs to be on an approved product list.
Eligible batteries must have a capacity between 2kWh and 28kWh.
The battery must be able to connect to a Virtual Power Plant (VPP).
There must be at least 6 years left on the battery’s warranty to collect the VPP rebate.
If the property already has an existing battery, a new battery installed at the same address will not qualify.
Use a program approved CEC certified solar installer.

NSW has announced that customers could potentially save up to $2,400 off the upfront cost and get as much as $400 as a cashback incentive for connecting to a VPP. VPP customers with a battery are eligible for this rebate again after three years.

HOW DO YOU APPLY FOR THE NSW SOLAR BATTERY REBATE IN 2024?

Here’s a step-by-step guide on how to apply for the NSW solar battery rebate in 2024:

Do your research: Familiarize yourself with the eligibility requirements and available incentives. Explore different battery sizes and VPP providers to find the best fit for your needs.
Find an approved supplier: Contact accredited suppliers (ACPs) like Solar Secure, which is approved to install batteries under the PDRS. A list of approved suppliers can be found on the NSW Government website closer to the program’s launch date, November 1, 2024.
CEC Approved Solar Retailers list
https://www.newenergytech.org.au/find-an-approved-seller
Get a quote: Request a quote from your chosen supplier, ensuring they include the battery cost, installation charges, and any applicable discounts from the rebate.
Compare your options: Carefully compare the quotes, considering the total cost, battery specifications, warranty terms, and VPP options.
Sign the agreement: Once you’ve selected your preferred supplier and VPP provider, review and sign the necessary agreements.
Schedule the installation:Coordinate with your chosen supplier to schedule a convenient date for the battery installation.
Enjoy the benefits: After installation, sit back and enjoy the benefits of your new solar battery system and reduced energy bills.

The NSW solar battery rebate is an excellent opportunity for NSW homeowners to embrace a cleaner, more sustainable energy future. By taking advantage of this program, you can save money, gain energy independence, and contribute to a greener grid for future generations.

WHAT IS A VPP (VIRTUAL POWER PLANT)?

A Virtual Power Plant or VPP is a network of decentralized generation/storage units. This could range from wind farms to rooftop solar and battery storage. When we say decentralized, we purely mean, not all in just one spot. You and your Neighbour could be in the same virtual power plant as your other mate 2 hours across town. That is one of the great parts of a VPP.

The concept of a Virtual Power Plant for Aussie Households is to bring together thousands of batteries across the country to form one big virtual battery connected via the internet. These are then controlled remotely, generally by the VPP provider to maximize the benefit from your solar and battery. For example, when the price of power goes up on the wholesale energy market these batteries may discharge together and earn the VPP provider money. Most VPP providers will then share some of the revenue to the battery owner but each VPP offering is different.

If you already have a battery installed, you can receive an incentive by connecting it to a Virtual Power Plant (VPP). A VPP allows you to sell some of the excess stored energy in your battery when other people on the grid need it most. Find out more here.

WARRANTY REQUIREMENTS FOR VPP PARTICIPATION:

BESS2 mirrors BESS1 for energy throughput and capacity retention, with the same transitional warranty thresholds based on the installation date (2.8 MWh/kWh before April 2026, 3.65 MWh/kWh after).
Manufacturers must offer at least a 10-year warranty that guarantees 70% capacity, with coverage for ambient temperatures between -10°C and 50°C
This rule ensures that batteries used in VPPs are fully covered, promoting long-term asset use and faster payback periods for high-cost equipment

BENEFITS OF VPP (VIRTUAL POWER PLANT)

Linking together distributed energy resources (DER), virtual power plants bring strength in numbers that deliver many benefits to consumers and society at large:

Grid Stability, Efficiency, and Electrification: To build a more sustainable future, virtual power plants can help prepare communities for widespread electrification by reducing peak electricity demand on conventional power plants. With distributed clean energy flowing into the grid during high-demand hours, VPPs can intelligently distribute customer power at the highest efficiencies and lowest stress levels.
Decarbonization and Human Health: Incentivizing clean energy generation at the consumer level, VPPs can help utilities decarbonize their electricity portfolio with enrolled customer equipment. By creating programs that encourage participants to share their solar power, VPPs can accelerate green energy use to reduce total grid-related emissions from fossil fuel, improve local air quality, and meet decarbonization goals.
Disaster Resilience and Recovery: While cost savings and a blanched grid are great day-to-day benefits, VPPs also have the potential to play a crucial role in power resilience during and after hurricanes, wildfires, tornadoes, and other natural disasters. With an interconnected network of distributed resources, advanced VPPs may be able to send energy wherever it is needed most after isolating downed lines or damage that has caused disrupted or unreliable electricity access.
Financial incentives: Most importantly, virtual power plants can help you (as a participant) save and even make money when you share your energy resources with the electricity grid. In addition to giving consumers more control over their electricity costs during time of use rates and allowing utilities to create equipment rebate programs, VPPs enable power producers to sell their clean energy for cash or bill credits on the open market.

WHAT ARE THE BENEFITS OF THE NSW GOVERNMENT SOLAR BATTERY REBATE?

The NSW solar battery rebate offers many benefits for homeowners, the environment, and the electricity grid

For Homeowners

Reduced Energy Bills: By storing excess solar energy generated during the day and using it during peak evening hours, you reduce your reliance on the grid and lower your electricity bills.
Faster Return on Investment: The rebate significantly reduces the upfront cost of a solar battery, shortening the payback period and making the investment more financially attractive.
Increased Energy Independence: Batteries provide greater energy independence, giving you more control over your energy usage and protecting you from grid outages.

For the Environment

Reduced Carbon Emissions: The rebate encourages the adoption of solar batteries, helping to accelerate the transition to clean, renewable energy and reduce reliance on fossil fuels.

For the Electricity Grid

Enhanced Grid Stability: VPPs help to balance supply and demand on the electricity grid, reducing the risk of blackouts and improving overall reliability.
Lower Wholesale Energy Costs: The scheme can help lower wholesale energy costs for all consumers in the long run by reducing peak demand.

PRC (PEAK REDUCTION CERTIFICATE)

Creation of PRCs: PRCs are generated when a qualifying action, such as the installation of a battery storage system, reduces electricity demand during peak periods. For example, by installing a battery that stores excess solar energy and using it during peak demand times (instead of drawing from the grid), consumers contribute to reducing peak load, which qualifies them for PRC creation. The number of certificates generated depends on the size and capacity of the installed system.
Eligible Technologies: New technologies such as residential battery installations and their integration into Virtual Power Plants (VPPs) are eligible to create PRCs. Batteries with a capacity between 2 kWh and 28 kWh, like the Tesla Powerwall 2 and Powerwall 3 can generate PRCs if they are installed in residential or small business settings. Moreover, PRCs are also generated if existing batteries are connected to VPPs.
Trading PRCs: PRCs are similar to other tradable environmental certificates, such as Renewable Energy Certificates (RECs), but are focused specifically on peak demand reduction. Accredited Certificate Providers (ACPs), such as installers or energy retailers, can sell these certificates to electricity retailers or other obligated parties who must meet targets for peak demand reduction under the PDRS. This creates a market for PRCs, allowing providers to monetize the peak demand reductions they facilitate.
Value of PRCs: The value of PRCs can vary depending on market conditions and demand. The certificates are typically sold in bulk, and the proceeds can be used to further reduce the cost of energy-efficient technology, such as batteries. The number of PRCs generated is proportional to the system’s ability to reduce demand during peak periods.
Peak Reduction Certificate https://www.energysustainabilityschemes.nsw.gov.au/pdrs/peak-reduction-certificates

NEW SOUTH WALES PDRS SCHEME

Eligible Technologies: The PDRS includes a variety of energy-efficient technologies, including the installation of batteries for solar power storage, energy-efficient appliances, and load-management systems. From 1st November 2024, household batteries will be a key focus of the PDRS, providing incentives to households and businesses to install batteries and connect them to Virtual Power Plants (VPPs).
Battery Storage Incentives: Under the PDRS, eligible participants can receive rebates for installing batteries to store excess solar energy. The rebates can range from $1,600 to $2,400 depending on the size and capacity of the battery. By connecting these batteries to a VPP, participants can also earn additional incentives, up to $400 at the time of connection and again after three years.
Objective: The primary goal of the PDRS is to reduce electricity usage during peak demand periods, which helps to avoid costly investments in new energy generation infrastructure and lower greenhouse gas emissions. Reducing peak demand also enhances grid stability, making the system more resilient to fluctuations in supply and demand.

BENEFITS OF THE PDRS

Cost Savings: Participants can save on energy costs by storing and using solar energy during peak times, rather than drawing from the grid when electricity prices are highest.
Grid Stability: By shifting energy consumption away from peak times, the PDRS helps to prevent grid overloads and blackouts, enhancing the reliability of the electricity supply.
Environmental Impact: Reducing peak demand also reduces the need for carbon-intensive energy generation during times of high usage, helping NSW achieve its emission reduction targets.

Overall, the PDRS is a vital part of NSW’s efforts to create a more sustainable, efficient, and resilient energy system, promoting renewable energy adoption and contributing to a cleaner environment.

Under the Peak Demand Reduction Scheme (PDRS) in New South Wales, Peak Reduction Certificates (PRCs) are a form of tradable certificate that represent a reduction in electricity demand during peak periods. These certificates are issued to accredited providers (such as energy companies or installers) for eligible technologies and actions that help lower peak electricity usage. The PRCs are part of a broader strategy to create financial incentives for energy efficiency and grid stability during times of high electricity demand.

HOW SOLAR SECURE CAN HELP

Solar Secure can assist in installing solar batteries by providing expert consultations to determine the best battery options for your energy needs. We can help with system design, ensuring compatibility with existing solar panels, and offer guidance on installation processes. Additionally, Solar Secure may assist with obtaining permits and navigating any incentives or rebates available for battery installations. Their expertise ensures that the system is optimized for efficiency, safety, and long-term performance.

Solar Secure provides batteries that are known for Our high storage capacity, durability, and long lifespan with measured efficiency, providing customers with a reliable and continuous power supply. To deliver the best we have partnered with the best leading companies in the Solar industry.

Solar Secure ensures and guarantees that Our systems operate at peak performance from day one. We ensure the performance by not just installing Solar panels, batteries and Inverters also test and verify the integrations on each stage.

GET STARTED TODAY

The new battery rebate scheme is an exciting opportunity to help secure your energy future and reduce your electricity bills. Don’t miss out on the chance to take advantage of these savings. Contact Solar Secure today to see how you can benefit and start your journey towards energy independence and sustainability.

Solar Secure is a NETCC (New Energy Tech Consumer Code) approved solar battery installer in Sydney. We provide a range of solar solutions, including battery storage systems, ensuring compliance with industry standards. Solar Secure is known as a reputable installer in Sydney, praised for their customer service and quality installations. So, if you are searching for the best installer in Sydney then Solar Secure is the one. If you need more specific information about our services or products, feel free to contact us!.