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November 25, 2024

Solar Learning Centre

FAQ: The NSW Battery Rebate is Here – What You Need to Know

Image of two battery units alongside the text "NSW Battery Rebate FAQ" with a background of solar panels.

Q: What is the NSW Battery Rebate?

The NSW Battery Rebate is a new incentive under New South Wales’s Peak Demand Reduction Scheme (PDRS). It’s designed to help reduce energy use during peak hours by incentivising the installation of solar batteries.

It’s not technically a “rebate” where you receive cash back after purchase. Instead, the rebate is an upfront discount applied by a certified installer when you buy a qualifying battery.

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Q: How does the NSW Battery Rebate work?

When you install a solar battery, the government assigns virtual tokens called Peak Demand Reduction Certificates (PRCs). Your solar installer sells these certificates to energy retailers or other organisations that need to meet environmental goals.  

Certified installers then apply the rebate as an upfront discount on your quote. If you connect your battery to a Virtual Power Plant (VPP), you may qualify for additional incentives based on how much energy your battery supplies to the grid during high-demand times.

If you’re interested in learning a bit more about VPPs, you might want to check out the following article titled, What is a Virtual Power Plant (VPP)?

Ready to go solar? Click here.

Q: Who is eligible for the NSW Battery Rebate?

The NSW Battery Rebate is available for both homeowners and businesses in New South Wales who are installing new battery systems.

There are two parts to the rebate scheme: part of it is for the installation of new batteries, but there’s also a rebate for connecting to a VPP, regardless of whether your battery is new or not.

To qualify for the new battery installation portion of the rebate, you must install a new battery. This program is focused on adding new battery storage, so it only applies to homes or businesses that do not already have an existing battery.

To qualify for the VPP portion of the rebate, you must have at least 6 years remaining on your battery warranty, whether it’s an existing battery or a new one.

Additional eligibility requirements include:

  • You must have or be installing a solar system.
  • The property should not have a battery currently installed for the battery rebate.
  • The battery must be on an approved product list.
  • The battery must have a storage capacity between 2kWh and 28kWh. If you go over 28kWh, you lose the whole rebate.
  • The battery must be capable of connecting to a VPP for the VPP rebate.
  • The battery must have at least 6 years remaining on its warranty to qualify for the VPP incentive.

If you’d like to learn more about Tesla products, we recommend you check out the following article titled, Tesla Powerwall 3 Review: An In-Depth Look at Tesla’s New Solar Battery.

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Q: How much can I save with the NSW Battery Rebate?

The NSW government estimates that eligible customers can save up to $4,000 as an upfront discount on the battery installation.

If you connect your battery to a Virtual Power Plant (VPP), you can receive an additional $400 as a cashback incentive, which can be earned twice within the battery’s warranty period (as long as 6 years of warranty coverage remain).

If you’d like to learn more about the price of a Powerwall 3, you might want to check out the following article titled, How Much Does a Tesla Powerwall 3 Cost?

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Q: Who is NOT eligible for the NSW Battery Rebate?

You won’t qualify for the rebate if:

  • You already have a battery installed at the property. Existing battery owners looking to add a second battery won’t be eligible.
  • Your battery’s total capacity exceeds 28kWh. Any system over this limit will not qualify for the rebate.

The program’s goal is to increase new storage capacity for the grid, so the focus is on new battery installations.

Unfortunately, this means early adopters with pre-existing batteries cannot benefit from the rebate, which may be disappointing for early adopters who already invested in energy storage.

If you’d like to learn a bit more about problems with the NSW battery rebate, you might want to check out the following article titled, Are You Eligible for the NSW Battery Rebate? Problems and Considerations.

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Q: How do I claim the NSW Battery Rebate?

To claim the NSW Battery Rebate, follow these steps:

  1. Choose a certified installer: Only certified installers can apply for the rebate. Penrith Solar Centre (PSC) is one such certified installer and can manage the process for you.
  2. Install an eligible battery: Make sure the battery you choose meets all eligibility requirements.
  3. Receive the rebate as an upfront discount: Your installer will apply the rebate directly to your quote, so there’s no waiting period for reimbursement.

If you’re interested in learning how you can turn your solar battery into a source of passive income, you might want to check out the following article titled, Variable Feed-in Rates and VPPs in NSW.

Power up your savings. Click here.

Q: What if I already have a battery and want to add another one?

The rebate only applies to properties without an existing battery, so if you already have one installed, adding another won’t qualify for the rebate. Only new installations or the first-time connection of a battery to a VPP are eligible.

If you’re interested in learning a bit more about what you can use as a solar battery, you might want to check out the following article titled, 7 Alternatives to a Solar Battery in Your Home.

Click to learn more!

Final Thoughts: Should I Apply for the NSW Battery Rebate?

If you’re installing a new battery and meet the eligibility requirements, the NSW Battery Rebate can save you a significant amount of money on your installation. Partnering with a certified installer like Penrith Solar Centre will ensure that you get the rebate applied as an upfront discount, making the entire process smooth and easy.

If you have any more questions about the NSW Battery Rebate, eligibility, or installation, contact Penrith Solar Centre for expert guidance.

A group of people posing in front of a building at Penrith Solar Centre.

If you’d like to learn a bit more about what solar batteries are on the market, you might want to check out the following article titled, 6 Best Solar Batteries on the Market.

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