Guide to the NSW Government Home Battery Rebate

As of 1 November 2024, the NSW Government has launched the NSW solar battery rebate as part of the Peak Demand Reduction Scheme (PDRS). This program aims to help homes and businesses with rooftop solar systems maximize their energy efficiency and reduce electricity costs by installing battery storage and connecting to a Virtual Power Plant (VPP).

Eligible homes and businesses can receive:

• Typically between $1,600 to $2,400 off the upfront installation costs of a battery, depending on the solar battery size.
• $250 to $400 for connecting your solar batteries to a VPP. This incentive can be claimed twice, with a minimum of three years apart.

The NSW solar battery rebate will help to install more home batteries across NSW, this program will help create a more reliable and stable electricity grid, reduce reliance on fossil fuels during periods of peak demand, and contribute to the state’s goal of reducing emissions by 70% by 2035 and achieving net zero by 2050.

NSW Solar Battery Rebate Full Details

Upfront Installation Rebate:

• Amount: Between $1600 and $2400. Depending on the size of the battery
• Purpose: Helps reduce the initial costs of installing a household battery, enabling homeowners and businesses to store excess solar energy for later use and reduce dependence on grid electricity.

Virtual Power Plant (VPP) Connection Incentive:

• Amount: Between $250 and $400. This incentive can be claimed twice (depending on the size of the battery), with a minimum interval of three years.
• Purpose: To encourage the integration of batteries into VPPs, allowing stored energy to be shared across the grid, improving stability and efficiency.

Eligibility Requirements for the NSW Battery Rebate

The eligibility for the NSW battery rebate is quite broad which is beneficial for residents of NSW.

• Solar panels must already be installed
• Available to homes or businesses of any size
• Your choice of battery must be within a nominal capacity of 2 kWh to 28 kWh
• An approved supplier under the Accredited Certificate Provider (ACP) must be used to install the battery.
• Incentives will only be available for homes & businesses from 1 November 2024
• See further down the page for ‘eligible batteries’

Step-by-Step Guide to Access the NSW Battery Rebate

1. Verify Your Eligibility

• You must be a resident or business owner in NSW with an existing rooftop solar system.
• Your solar installation must comply with relevant standards and regulations.

2. Choose an Accredited Supplier

• The rebate is accessed through approved suppliers, known as Accredited Certificate Providers (ACPs), accredited by the Scheme Administrator (IPART).

3. Obtain a Quote

• Enter your postcode below to get 3 free quotes from local installers for the installation of a household battery.
• Once you’ve received the initial quotes, contact the installer to ensure the quote can include the rebate, reducing the upfront cost by up to $2,400.

4. Install the Battery

• Schedule and complete the installation with the accredited supplier.
• Confirm that the installation meets all safety and technical requirements.

5. Connect to a Virtual Power Plant (VPP)

• Follow your installer’s guidance to connect your battery to a VPP.
• Claim the additional $250 to $400 incentive for this connection, which can be claimed again after three years.

Benefits of installing a battery under the NSW battery rebate

Maximising Solar Energy Use:

• By installing a battery, households and businesses can store excess solar energy generated during the day for use at night, thereby reducing the reliance on grid electricity

Reducing Energy Bills:

• Stored solar energy can significantly lower electricity costs, as it reduces reliance on grid electricity, especially during peak demand periods.

Enhancing Grid Reliability:

• The widespread adoption of batteries will contribute to a more stable and reliable electricity grid by providing backup power and helping to manage peak demand.

Supporting Renewable Energy Transition: Increased battery storage capacity will aid NSW in reducing greenhouse gas emissions, targeting a 70% reduction by 2035 and achieving net zero by 2050.

Estimated NSW Rebate for Popular Solar Batteries

The table below provides estimated rebates based on the NSW Government’s Solar Battery Certificate Calculator (using postcode 2000) and the current PRC price of $2.38 per certificate (as per Demand Manager). The rebate estimate is for 2024 and will vary based on location and battery size.

How the NSW Solar Battery Rebate Works:

• Battery Installation: Install a battery from an accredited provider with a capacity between 2 kWh and 28 kWh.
• PRC Calculation: The rebate value is determined by the number of Peak Reduction Certificates (PRCs) your battery generates, which is estimated using the NSW Government’s Solar Battery Certificate Calculator. PRCs are awarded for reducing grid demand during peak times, and the amount depends on your battery’s size and location.
• Rebate Amount: Multiply the estimated PRCs by the current PRC price (currently $2.38). For example, a 13.5 kWh Tesla Powerwall 2 generates approximately 1,077 PRCs, which translates to a rebate of $2,563.26.
• Additional Incentives: Connecting your battery to a Virtual Power Plant (VPP) can provide an extra $250 to $400 incentive, claimable twice over six years.

Important Notes:

• The rebate values are estimates based on average figures for NSW postcodes. Actual PRC generation and rebate amounts may vary slightly depending on your specific battery model, location, and registration fees and costs.
• Confirm the exact rebate with your accredited installer before finalising your installation to ensure the correct amount is applied.

Which batteries are eligible for NSW solar battery rebate?

The PDRS rules set out some clear requirements for batteries to be eligible for the rebate. As minimal consultation with the industry was conducted prior to launching the scheme, many popular battery’s warranties do not meet the standards of the PDRS. We expect that most battery manufacturers will reissue Australian warranty documents (potentially just for NSW customers) in the coming months.

Battery Requirements

• Battery must be on the approved product list of the Clean Energy Council
• Usable battery capacity must be between 2kWh and 28kWh
• Battery must be connectable and controllable by 3rd party equipment (i.e. for VPP)
• Battery must have a 10 year product warranty and must retain 70% of usable capacity after 10 years
• Must warrant a minimum energy throughput of 2.8MWh per 1kWh of usable capacity installed
• Battery operating temperature of -10 °C to 50 °C

For more details and accurate rebate estimates, visit the official NSW Government Battery Calculator and compare quotes from local installers to get the best deals.

NSW Battery Incentive Frequently Asked Questions (FAQs)

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

We haven’t seen a solar power rebate in NSW quite as good as this since the SA Government solar battery rebate (now closed), making this one of the best battery rebate programs available in Australia.

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James Shand

Marketing Manager at Solar Choice

With half a decade experience in the solar energy industry, specialising in business strategy and marketing for solar companies. He has worked with top solar distributors in Canada and now collaborates with solar manufacturers and installers across Australia via Solar Choice, Australia's leading solar comparison platform. With degrees in business technology, science, and marketing, James combines in-depth market insights with technical knowledge, positioning him as a trusted authority in renewable energy.

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