An Overview Of The NSW Solar Battery Rebate
Homes and businesses will soon be able to take advantage of a financial incentive for a storage battery installation under the NSW Peak Demand Reduction Scheme (PDRS). To qualify for the incentive, homeowners must have an existing rooftop solar system, or install one in conjunction with the battery. An additional optional incentive is available if the homeowner contracts the battery to a Virtual Power Plant (VPP).
This battery financial incentive aims to accelerate the uptake of solar enabled grid connected battery storage throughout NSW.
Battery technology not only provides electricity cost savings to homeowners and businesses but also plays a crucial role in supporting the NSW grid during times of peak demand.
Oh, and not to mention, if there is a blackout, your lights and power will remain on, at least to the extent of your battery capacity.
In addition to improving the NSW electricity grid’s reliability and stability, the Peak Demand Reduction Scheme makes a valuable contribution to our goal of reducing emissions by 70% by 2035 and our target of Net-Zero by 2050.
There are other non-battery incentives available for this scheme, which can be found here at the: Peak Demand Reduction Scheme. The information below explains more about the NSW solar battery incentive.
The idea is to have a solar power system of sufficient size to power both your daily needs and to be able to fully recharge your battery with the excess solar. Depending on your household consumption, this is likely to be at least 5kW to 10kW of solar panels. There’s no upper limit, the more, the better. The battery then provides you with night-time electricity and, more importantly, with electricity during the peak times when it is super expensive. (In the NSW country network, Essential Energy, that’s between 7 am to 9 am and 5 pm to 8 pm). Should you choose to sign up for a Virtual Power Plant contract by forgoing some of the battery capacity, some of the time, you can earn additional income on top.
In practice, this is how the incentive works; when you add a battery to your existing solar power system, or when you install a new combination battery and solar panel system, then, according to a formula, a number of Peak Demand Reduction Certificates (PRCs) for the battery are created.
PRCs have a market value and are traded in the same way that Solar STCs are created and traded when buying and installing only solar panels (from a suitably qualified solar installation company that is). Trading of PRCs and STCs at the time of installation provides you with a Point-of-Sale discount from the normal price. Easy peasy.
During 35 years of continuous sales and service in the solar power industry, we’ve seen umpteen incentives come and go. They have been a real benefit to our customers, but they can get hectic once the gates open, and often they don’t last forever.
We highly encourage you to install as many solar panels as your budget and needs permit. Starting early will ensure long-term benefits.
The solar panels will be discounted with the Point-of-Sale STC incentive at this time in the normal way. Following the anticipated opening of the battery incentive on November 1st 2024, add the battery and pick up the Point-of-Sale PRC discount.
The NSW government has provided a preliminary formula for the battery incentive.
Using this formula, a PowerWall2 battery will receive 1088 PRCs. The market price for a PRC is currently around $2 each, so the incentive will be around $2,176 including GST (1088 x 2 = 2,176).
That’s a good discount for a single Powerwall2 installation. If you double that, you’ll get $4,352 for two Powerwall2s.
The final binding formula will be released by the NSW government on August 1st, and once we see it, we will know exactly how many PRCs will be created for the PowerWall2 battery.
Of note is that the PRC price is subject to market variation, and the price can go up and down. However, there is a control mechanism managed by the NSW government, which sets the number of PRCs that have to be purchased in the market by the obligated parties. The PRC market, therefore, like the STC market, is based on supply and demand, but the government sets the demand.
This control loop gives the government the means to stabilise pricing if it is deemed necessary. In addition, the market has an upper price cap of $3, so it can’t get out of control on the high side either.
In summary, the battery incentive is real, it is legislated, and the final binding formula to be revealed on August 1st will fine tune the above financial example. It will provide a great incentive for homeowners and businesses to install a storage battery. We strongly recommend installing solar panels now if you haven’t already done so and add one or two PowerWall2s after November 1st
Contact us today on 6652 9700 or retail@megawattpower.com.au for the latest info and quotes on batteries and solar panels and to discuss our install schedules.
We will be delighted to speak with you about all things solar and battery.
