The NSW solar
battery rebate

The subsidy is part of the Peak Demand Reduction Scheme (PDRS), which aims to reduce energy usage during hours of peak electricity demand.

For consumers, the rebate can reduce the cost of a solar battery, or a new solar panel and battery system, by up to $2,400. A further rebate of up to $400 can be claimed by connecting the battery to a Virtual Power Plant (VPP). The rebate is available from 1st November 2024.

Installing a solar battery can have many benefits, rebates like the NSW government battery incentive can firmly put the economics in your favour and help to reduce your electricity bills. Other benefits to battery storage include:

• Provide power during a blackout
• Reduce reliance on grid electricity
• Reduce your carbon footprint by using more solar energy
• Provide protection against dwindling solar feed-in tariffs
• Save money on your electricity bills

Our guide explains everything there is to know about the solar battery rebate in NSW including: eligibility, how it works, how to apply, its impact on battery prices and what you can expect to save.

What is the NSW solar battery rebate?

The NSW government’s solar battery rebate scheme doesn’t have an official title, and technically, it’s not even a rebate. It works in similar fashion to the Australian government’s solar rebate, in that participants earn Peak Reduction Certificates (PCRS), which are traded at market value, so the exact amount of the rebate varies according to:

• The size (capacity) of the battery you install
• Where you live and,
• The price of the certificates

How the rebate works

The rebate is available to all eligible NSW residents that install a new solar battery.The battery capacity must be between 2 kWh to 28 kWh. If you already own a battery, you can earn an incentive by connecting your system to a Virtual Power Plant (VPP). However, the battery must have at least 6 years remaining on its warranty.

The VPP rebate can be claimed in addition to the solar battery rebate.

Value of the NSW battery rebate

The exact value of rebate on new battery installs varies between $750 - $2,400, though figures are estimates only. The rebate varies according to battery size:

• Between $750 - $1,160 for a 6.5 kWh battery
• Between $1,600 - $2,400 for a 13.5 kWh battery

To get more accurate figures, you can use the NSW government’s battery calculator.

Value of the NSW VPP rebate

There is also an incentive available for new and existing battery owners who connect their system to a Virtual Power Plant (VPP). The value of this rebate varies between $120 - $400 and it can be claimed twice over a 3-year period. It is another initiative of the NSW PDRS scheme, aimed at reducing grid demand.

Again, the VPP rebate varies according to the size of the battery:

• Between $120 - $190 for a 6.5 kWh battery
• Between $250 - $400 for a 13.5 kWh battery

Over the course of three years, it is possible to claim rebates totalling up to $3,200 under the NSW battery scheme making it one of the best battery incentives available in any Australian state.

Eligibility criteria for the battery rebate in NSW

The eligibility requirements to claim the NSW battery rebate are fairly straightforward, there is no limiting criteria based on income like there is with the Victorian solar rebate. The eligibility guidelines are as follows:

• You must be a New South Wales resident
• The battery install can be for a home or business
• It must be a new battery install
• You can also buy new solar panels with the battery
• The install must be connected to the electricity grid (no off-grid systems)
• The battery must be between 2 kWh and 28 kWh in capacity
• The battery must appear on the Clean Energy Council’s ‘Approved Battery List’
• The battery must be installed by an accredited supplier under the PDRS scheme

Eligibility criteria for the NSW VPP rebate

Eligibility requirements to access the VPP rebate are very similar to those for the new battery incentive. The criteria is as follows:

• You must already have a solar battery installed in NSW
• Battery must have a minimum of 6 years left on its warranty
• The battery size must be between 2 kWh and 28 kWh
• An accredited supplier must connect the battery to a VPP

How to apply for the battery rebate?

Applying for the home solar battery rebate in NSW is relatively straightforward. We list the steps involved to access both the upfront incentive for the battery and the follow up, optional, VPP rebate.

1. Choose your battery

It’s best to select the best battery for your needs, then apply for the rebate. It’s unlikely that the rebate will impact your battery selection. Most of the popular batteries are available in the NSW subsidy, you can read our detailed guide on solar batteries to help you with your choice.

2. Organise battery quotes from installers

We recommend getting quotes on your preferred batteries. We can help with this, all you need to do is complete this quote form and we can organise three, no obligation, quotes from CEC accredited installers in NSW for both solar batteries and new panel and battery systems.

The accredited installers must be signed up with one of the PDRS accredited suppliers. Please note, they are not one and the same thing!

3. Select your installer

Once you have selected your battery and compared your quotes, you need to settle on an installer to carry out the installation.

4. Sign the nomination form

Your chosen installer will handle the incentive on your behalf. They will provide a nomination form for you to sign. Signing this form is the key to receiving the rebate. The installer will then apply for the incentive from their accredited PDRS supplier.

5. Install the battery

The installer will provide you with a date for the installation of the battery. Accredited installers must comply with safety regulations. PDRS accredited suppliers face additional compliance checks to ensure installations are as safe as possible.

6. Connect to a VPP (optional)

Once the battery is installed, you have the option of connecting the battery to a Virtual Power Plant and receiving further incentives. The accredited supplier will provide you with a VPP contract to sign and handle the rebate component.

You can read more about the Peak Demand Reduction Scheme (PDRS) and how it works here.

Solar battery prices in NSW with the rebate

The NSW rebate reduces the prices of solar batteries according to their size and location. Let’s take a look at how this impacts the price of popular battery models in Parramatta, the heart of Sydney:

The rebate brings down the price of popular batteries like the Tesla Powerwall closer to the $1,000 per kWh mark.

Combing new solar panels (6.6kW) with a 13.5 kWh battery will see you pay around $20,000. The federal incentive, the solar panel rebate which is available to NSW residents, is factored into this price.

What the battery rebate in NSW does to payback times

Solar batteries save money by allowing you to store excess energy, and use when you need it. NSW feed-in tariffs average around the 7c / kWh mark, so storing excess power using a battery can save you around 26c / kWh, meaning you instead of paying 33c / kWh for the electricity from the grid.

The NSW home battery rebate reduces the payback time of new panel and battery systems, and solar batteries for existing solar panel systems. We have run the figures to see what impact the rebate has on savings and payback figures.

For this exercise, we will use the average electricity bill in Sydney of $590 per quarter.

The results show the rebate drops the payback time from right on 10 years down to 8.9 years. This tips the balance on the system, though the payback is now inside the warranty length of the battery (10 years). Of course, the new solar panels, are expected to last 25 years.

Adding the VPP rebate

The results get really interesting when the additional VPP rebate is added in the first year. The new average bill goes from $37.60 per quarter down to a credit of $62.40 per quarter. The electricity bill is eliminated in the first year!

Of course, the VPP rebate can only be claimed a maximum two times inside the first three years.

*These figures use average data, it really is best if you perform your own calculations using our solar and battery calculator.

With the generous government incentives available, it appears the time to purchase a solar battery in NSW has arrived.