The NSW Home Battery Rebate is a new initiative by the NSW government from 1 November 2024 to help homeowners afford solar battery installations. This incentive aims to make renewable energy more accessible and reduce energy bills by offsetting the upfront costs of installing a solar battery.
There are 2 parts to the rebate scheme: BESS1 and BESS2.
BESS1 refers to the upfront discount you can receive for installing a new battery, while BESS2 claims relate to existing batteries and require signing up with a VPP (virtual power plant).
Let’s get into the technical nitty gritty…The official name for the rebate scheme is the Peak Demand Reduction Scheme (PDRS) and is based on certificates which are created based on the energy saved from the installation. For reducing or shifting load by 0.1 kW during peak times creates one Peak Reduction Certificate (PRC). In plain English, the bigger the size of your new battery system, the more PRCs you will be creating and the bigger your rebate will be. Similar to when you install a solar system, after meeting the installation requirements and after completing the necessary paperwork, these PRCs can then be traded for a point of sale discount. Sydney Air & Solar will guide you through the process from start to finish so all you have to worry about is planning your next holiday with the cash you will be saving on your electricity bills.
To qualify for BESS2, customers need to sign a demand response contract with a provider for a Virtual Power Plant (VPP). By signing this contract homeowners allow controlled discharge of their batteries during peak electricity demand periods, which helps the grid stabilise during high-demand times. Essentially, this means you let your energy company use some of the power stored in your home battery and again in return you can claim incentives depending on your battery system size. The incentive can be claimed twice with at least 3 years in between claims.
The rebate amount depends on the size of the battery system you install. The bigger the battery system, the bigger the rebate. Additionally you can claim extra incentives by connecting your battery systems to a Virtual Power Plant (VPP).
To qualify for the NSW Solar Battery Rebate, you must meet the following criteria:
To qualify for the NSW Solar Battery Rebate:
No, not all batteries are eligible for the NSW Solar Battery Rebate. Battery Systems must meet these criteria to qualify:
No, you cannot claim the NSW Battery Rebate for pre-existing installations as the rebate is only available for new battery installations completed as part of the scheme.
No, the rebate is only available for new and first-time battery system installations.
No, the rebate is only available for brand new first-time battery installations and does not extend to battery replacements or expansions.
No,the rebate is specifically designed for on-grid systems that are connected to the electricity network and contribute to reducing peak demand.
A Virtual Power Plant (VPP) is a network of connected energy resources, such as solar panels and battery storage systems that are coordinated using advanced software to act as a single power source. It allows solar battery owners to connect their storage systems to the grid and contribute to overall energy stability. It basically allows energy companies to tap into your stored power during peak times in exchange for payments or savings on your bills. By participating in a VPP, you can receive an additional rebate. You will have to sign a contract with an energy provider who will then connect your system to their VPP software enabling remote monitoring and control. Several providers offer VPP programs and each provider has specific eligibility criteria, incentives and terms. Sydney Air & Solar advises contacting the providers directly to understand the details and determine which program best suits your energy needs.
Sydney Air & Solar recommends you research and select a VPP provider that offers the best incentives and terms for your needs. The provider will check to ensure your solar and battery systems are compatible with a VPP program and provide you with a contract outlining how the VPP will use your stored energy, the incentives you will receive and any terms and connections. Once you have signed the agreement, the VPP provider will connect your battery system to their VPP software to enable remote monitoring and control.
Under the NSW Battery Rebate, a rebate of $250 to $400 is available if you connect your battery to a VPP. This is on top of the installation rebate which you can claim for installing a new first-time battery.
This rebate can be claimed twice with at least 3 years between claims.
While the financial benefits and rebates available make signing up to a VPP very attractive, there are some downsides to consider and Sydney Air & Solar recommends that you carefully review the VPP contract and weigh the financial benefits against these potential drawbacks so that you can make the right decision for your home.
The NSW Solar Battery Rebate Scheme officially started on 1 November 1 2024 and is in full swing so there is no better time than the present to start enjoying the benefits of reduced power bills. Applying for the NSW Solar Battery Rebate is straightforward and Sydney Air & Solar is here to help every step of the way. Just call us or e-mail us and we will make sure you maximise your savings.
If you’re ready to reduce your energy bills and take advantage of the NSW Solar Battery Rebate, contact Sydney Air & Solar now to discuss your energy needs. Our dedicated team will handle the entire battery rebate application and installation process for you, making it stress-free and seamless.
Yes, if your solar panels are connected to the grid with a smart meter, you can qualify for the rebate by installing a new battery.
No, the NSW Solar Battery Rebate does not apply if you already have or have had a solar battery installed as it is only intended for the installation of new battery systems.
To be eligible for the NSW Solar Battery Rebate under the Peak Demand Reduction Scheme (PDRS) the battery system to be installed must have a size between 2kWh and 28 kWh. If the battery size is larger than the eligible range, it will not qualify for the solar battery rebate.
The NSW Solar Battery Rebate is only available for first time battery installations and for battery systems with a size between 2kWh and 28kWh. The battery system can consist of multiple batteries, as long as the total capacity of the combined system does not exceed 28kWh. Sydney Air & Solar recommends going as big as possible from the start to meet all your future energy needs.
The NSW Solar Battery Rebate scheme began on November 1, 2024 and is designed to run until 2030.
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