Solar power NSW: How to get a subsidised household battery

Oct 31, 2024

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NSW households can claim up to $2600 off the cost of a battery to store solar energy and as much as $400 to connect to a virtual power plant as part of a state government scheme that begins on Friday.

Under the peak demand reduction scheme, starting on November 1, more than a million homes in NSW with roof-mounted solar panels are eligible for the incentive.

Depending on the size of the battery, the incentive is worth between $1300 and $2600. For households without solar, the incentive will be considered in any quotes for a new solar and battery set-up.

Consumers should check whether solar and battery installers are participants in the scheme and seek a quote that includes the rebate. Retailers will work with an approved certificate provider to do the paperwork.

Households that already have a battery are still eligible to claim a bonus for connecting a battery to a virtual power plant. This is $120-$190 for a 6.5 kWh battery and $250-$400 for a 13.5 kWh battery, and consumers will be eligible to claim this incentive again in three years.

Virtual power plants store the power produced by rooftop solar in communal batteries, to be released into the grid to address frequency and voltage imbalances or local disruptions.

To join a virtual power point, consumers can sign with their electricity retailer or battery provider or directly with an approved certificate provider, according to whether they already have a battery.

Households with batteries can store the solar power produced during the day to use at night when retailers charge peak prices.

This will also help the grid’s stability, which has been under pressure from high volumes of cheap energy during the day when demand is lowest. Because of its shape, the demand curve is called a “solar duck”.

Smart Energy Council chief executive John Grimes said the peak demand reduction scheme would help more NSW households take control of their own energy.

“Battery booster programs are a no-brainer for people trying to cut their rising energy bills during a cost-of-living crisis and we want to see more of them,” Grimes said.

“Allowing people to store the energy they create on their roofs will ease the pressure on the grid during periods of peak demand.”

Ria O’Hehir, chief executive of approved certificate provider Greenbank Environmental, said the scheme was the “most innovative” she had seen in 20 years.

“This is a significant step toward empowering individuals to become more energy-aware and resilient,” O’Hehir said. “We need to see this rolled into a national scheme to maximise its impact.”

The NSW government recently released its consumer energy strategy, which includes initiatives to make solar panels more accessible for apartment residents and low-income households.

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