The New South Wales government has announced new solar battery incentives that will commence from 1 November 2024.
The latest NSW Solar Battery Subsidy for 2024 offers significant savings off the up-front installation costs of a battery for homes and businesses with existing solar, and a further (smaller) incentive for businesses and households that connect a battery to a Virtual Power Plant (VPP).
The latest solar battery subsidy for 2024 comes as part of the Peak Demand Reduction Scheme (PDRS) launched back in 2022 that will run through to 2050.
How much is the new NSW Solar Battery Subsidy for 2024?
The latest NSW Solar Battery incentive for 2024 offers incentives between $1600 to $2400 off the up-front cost of battery installation for homes and businesses with existing solar.
The available incentive offered to residential and business customers will be determined by the size of the battery.
The New South Wales government announced a further incentive of between $250 to $400 for businesses and households that connect a battery to a Virtual Power Plant (VPP).
Who is eligible for the NSW Solar Battery Subsidy?
To be eligible for the 2024 NSW solar battery subsidy launching on 1 November 2024, residents and businesses must have a rooftop solar system between 2kWh and 28kWh installed on the premises and use an approved solar battery supplier under the PDRS.
As mentioned, the system must be installed on the premises by an approved solar battery supplier under the PDRS. Approved suppliers – known as Accredited Certificate Providers or ACPs – are accredited by the Scheme Administrator (IPART) to provide installation and upgrades under the Peak Demand Reduction Scheme (PDRS).
How can I claim the NSW Solar Battery Subsidy?
Approved suppliers under the PDRS will begin offering the new solar battery incentive from 1 November 2024.
Approved PDRS suppliers will pass the savings directly to the consumer and be responsible for claiming these incentives for work completed from 1 November 2024 onwards.
Consumers will see the new solar battery incentive amount of between $1600 – $2400 reflected in the invoice that they receive from the approved supplier at the time of installation. The approved supplier under the PDRS will be able to provide more information on incentive amount and eligibility based on the size of the battery.
Further Progress for the Peak Demand Reduction Scheme (PDRS)
The latest solar battery incentive reflects further progress for the Peak Demand Reduction Scheme (PDRS).
The New South Wales Government’s Peak Demand Reduction Scheme or PDRS is a key initiative that is intended to reduce energy demand during peak hours.
Launched back in 2022, the Peak Demand Reduction Scheme set a peak demand reduction target for the electricity retailers and large users in a bid to reduce energy usage during hours of peak demand. For electricity retailers and large users, the PDRS means that they must create or buy peak reduction certificates (known as PRCs) for activities that reduce energy usage during hours of peak demand.
By reducing peak demand and lowering energy consumption during peak times, the scheme aims to lower the cost of electricity for all users and reduce the risk of outages in New South Wales. It’s estimated that these initiatives will save households and businesses some $1.2 billion on energy bills between 2020 and 2040.
Final Thoughts
The latest NSW solar battery subsidy is good news for consumers and a positive initiative to bolster the Government’s Peak Demand Reduction Scheme.
The government’s decision to announce the initiative back on 24 May 2024 – some five months before the subsidy begins, has attracted some criticism from approved PDRS suppliers that voiced concerns over how the pending incentives will impact sales during the interim period.
At the time of writing, the New South Wales government has not yet placed a limit on the number of incentives available or for how long they will be available.
written byBy Michael Henderson
