Following the recent announcement and excitement surrounding the upcoming battery subsidy from the NSW Government, many are eager to learn about the available batteries, potential savings, and updates on this incentive (Updated October).
Let’s delve into what the subsidy entails, the eligibility criteria, and which batteries qualify for the energy storage incentive.
Latest Incentive Updates
- Sungrow has updated its warranty to guarantee 70% capacity over a ten-year period, making both the SBR and SBH series eligible for the rebate as of October 1st.
- The maximum battery capacity remains at 28 kWh.
- The scheme continues to be limited to new-battery installations only, excluding expansions.
- The operating temperature range stays between -10°C and 50°C.
- The energy efficiency has shifted from <3.65 MWh per kWh to <2.8 MWh per kWh until April 1, 2026, after which it will revert to <3.65 MWh for installations post-April 1, 2026.
Table of Contents
Is the NSW Battery Scheme a Rebate?
The incentive is not technically a rebate; rather, it involves the creation of certificates from each battery installed. These certificates are traded with energy retailers based on their maximum demand over three selected days during the summer. As a result, there is no guarantee regarding the price for each certificate, making it challenging to determine the exact value of the incentive.
Despite this clarification, many continue to refer to it as a rebate. For the sake of convenience, we will also use the term “rebate.”
What is the 2024 NSW Battery Rebate?
The ‘Peak Demand Reduction Scheme’ (PDRS) aims to encourage more Australians to invest in home battery storage by offering upfront reductions in installation costs. This initiative enables homeowners to maximize the benefits of rooftop solar by adding battery storage and connecting to a Virtual Power Plant (VPP).
Set to launch on November 1, 2024, the program seeks to stabilize the grid while furthering Australia’s Net Zero targets and reducing overall emissions.
In addition, solar battery rebates and programs are available for both homes and businesses across New South Wales. Below are the official reductions for solar battery storage provided by the NSW Government.
Existing Solar
Homes and businesses that already have solar systems can receive discounts ranging from $300 to $4500 on the initial installation cost of a battery, depending on the battery’s size and location.
Without Solar
The incentive can be applied to a new solar and battery system.
Postcode & PRC price
$40 and $690. Based on Postcode and PRC price.
Official NSW Battery Scheme Requirements
According to the ‘Peak Demand Reduction Scheme’ signed by Penelope Sharpe, the following equipment requirements apply for the battery incentive in New South Wales:
- The End-User Equipment must be listed on the approved product list provided by the Scheme Administrator.
- The End-User Equipment must possess a usable battery capacity greater than 2 kWh and less than 28 kWh, as recorded on the approved product list.
- The End-User Equipment must have a minimum warranty of 6 years remaining.
- The warranty for the End-User Equipment must specify the conditions for normal use, including:
(a) An ambient temperature range of -10 °C to 50 °C.
(b) 2.8 MWh of energy throughput per kWh of usable capacity for installations before April 1, 2026, and 3.65 MWh for those after April 1, 2026.
- Participation in the program must not void or reduce the End-User Equipment warranty to less than a guarantee of at least seventy percent (70%) of usable capacity retained ten years after the equipment’s installation at the site.
NSW Battery Rebate Eligibility Comparison Table
This historical comparison has been superseded. Explore our current battery range and current battery rebate guidance.
All our batteries are approved for BESS1
Enphase (BESS2 available end of January 2025)
Powerwall 3
This article describes the earlier NSW battery rebate. For current battery options and incentive guidance, see our Powerwall 3 and battery rebate pages. Eligibility is assessed for your proposed installation.
Sungrow SBR & SBH Battery
Solar Edge
This article describes the earlier NSW battery rebate. For current battery options and incentive guidance, see our Powerwall 3 and battery rebate pages. Eligibility is assessed for your proposed installation.
Alpha
Latest Update on Peak Demand Reduction Scheme Rule Changes
For installations completed before April 1, 2026, batteries must come with a warranty for a cumulative energy throughput of 2.8 MWh/kWh. This standard aligns with the conservative practices of leading manufacturers, offering consumers a wide range of options when choosing their battery brand and model.
Starting April 1, 2026, the warranty requirement for throughput will increase to 3.65 MWh/kWh.
Which batteries qualify for the NSW Battery Rebate?
Approved Product List: This list will feature batteries that have been approved for quality and safety standards. It is important to note that this is distinct from the CEC approved battery list; instead, it pertains to the specific Scheme Administrator list, which is yet to be released.
Usable Capacity: The usable capacity of batteries ranges from 2 to 28 kWh, representing the actual amount of energy a battery can store and deliver. This figure is typically slightly lower than the nominal total capacity. According to the NSW Government’s website, an average household of five consumes approximately 25 kWh per day.
Warranty Duration: Battery manufacturers are mandated to provide a minimum warranty of six years to ensure long-term reliability. However, the batteries we install, such as the Tesla Powerwall, Sungrow, and BYD models, come with impressive ten-year warranties, ensuring that your unit is protected against any potential failures.
Warranty Conditions: The specified temperature range ensures that the battery operates reliably across different climates. Some batteries feature multiple temperature ranges, which can lead to confusion.
Throughput refers to the longevity of a battery through numerous charging and discharging cycles. This metric helps confirm that you are getting the best value for your investment and minimizes the risk of premature failure.
70% Remaining Capacity: Over a span of 10 years, batteries are expected to degrade, which is assessed by measuring the remaining usable capacity. According to their datasheets, BYD batteries reach 60% of their usable capacity at the 10-year mark, while Tesla Powerwall and Sungrow SBH + SBR maintain 70% remaining capacity.
Will the Battery Incentive resemble the Solar Rebate?
Following the success of the solar rebate program in recent years, we are excited about the potential impact of a battery scheme for residents across NSW.
As we near November 1st, we anticipate further clarity regarding battery eligibility, potential savings, and other crucial updates.
In the meantime, there’s encouraging news! There are additional strategies available that can provide a significant return on investment.
What Can You Do While Waiting for the Battery Scheme to Begin in November?
Switch to Amber and Earn
Amber provides customers with access to the wholesale energy market, enabling them to purchase affordable energy while also selling excess solar power back to the grid for profit. This option offers a safer investment for those looking to save immediately, as it is readily available.
We anticipate that by the time the rebate program launches, market demand for battery units will drive prices up, potentially offsetting the discounts you might expect. By investing in your battery now and joining Amber, you could earn back as much as you would save by waiting for the rebate to begin.
Several members of our team have joined Amber with their solar and battery systems, earning as much as $220 in a single day by selling their stored energy during peak demand periods.
Avoid the Rebate Rush and Get Solar Now
While we eagerly await November, we can only provide approximate pricing and schedule your battery installation.
If you’re considering solar power along with your battery, why not install your solar system now and add the battery later? By completing your solar and other electrical installations upfront, you’ll be fully prepared for your battery installation, allowing you to avoid the rush for rebates.
Many people will seek batteries to take advantage of the incentives, which is likely to drive up demand and cause delays. By planning ahead and booking your solar installation now, you can beat the rebate rush and ensure a smoother process.
What Can You Do Until the Battery Scheme Starts in November?
The potential of this rebate is significant, offering benefits for everyone—from customers to local businesses. A well-structured battery storage rebate can enhance community access to energy storage, contributing to a more stable electricity grid that delivers reliable and cost-effective energy.
By providing discounts on battery storage, we can replicate the success of the solar rebate initiative, which transformed Australia into a global leader in rooftop solar energy. New South Wales experienced a swift adoption of solar systems, and this investment has proven fruitful, yielding not only individual financial returns but also facilitating Australia’s transition to renewable energy. As of Q4 2023, over 11% of Australia’s electricity is generated from rooftop solar.
What does Battery Storage Actually do?
If you’re new to battery storage for homes and businesses, you’re in good company!
Battery storage offers an excellent solution for capturing excess solar energy generated during the day, allowing it to be utilized during peak demand periods. By harnessing this technology, battery owners can maximize their solar investments, lower energy costs, and reduce grid demand, all while contributing to grid stability and supporting emission reduction goals.
Who is the Battery Scheme designed for? This rebate is intended for individuals looking to invest in solar batteries, helping more Australians access this innovative technology.
Wrapping things up
Until we gain a clearer understanding of the mechanics behind the battery rebate scheme in NSW, we can only speculate on its potential benefits. Key factors, such as the Approved Product List specified by the Scheme Administrator, will influence its trajectory.
If you want to stay informed about the developments of the scheme, consider subscribing to our updates list. We’ll provide you with the latest information regarding the battery incentive program.
Get a quote today on a solar battery for your home or business