Everything we know about the upcoming NSW Home Battery Rebate.
Everything we know about the upcoming NSW Home Battery Rebate.
The recently announced battery subsidy by the NSW Government looks promising, with good value deductions and customer eligibility, but when analysed, provokes a few questions amongst both customers and battery installers, like us.
Let's explore what the scheme's requirements are, what batteries are eligible, how much you can save, and alternative methods to get great return-on-investment on your battery.
This scheme technically isn’t a rebate as certificates are created from each battery installed, which are then traded with an energy retailer based on their maximum demand over 3 selected days through summer. This means there is no guarantee of the price paid for each certificate, so it difficult to give an exact value of how much the incentive will be.
However, this hasn’t stopped everyone from referring to it as a rebate, so we will continue to refer to it as a rebate throughout
this article.
The ‘Peak Demand Reduction Scheme’ is designed to incentivise more Australians to invest in home battery storage, through up-front installation cost reductions. The options will allow you to take advantage of rooftop solar by adding battery storage, and by connecting to a Virtual Power Plant (VPP).
The program initiates from November 1, 2024, and is aimed to help stabilise the grid, further contributing to Australia’s Net Zero targets, and reducing overall emissions.
The available incentives depend on your situation. Here are the official scheme reductions from the NSW Government.
Homes and businesses with existing solar can get between $1600 - $2400 off the up-front installation cost of a battery, depending on the battery size.
The incentive can be quoted into a new solar and battery system.
Get between $250-$400 for connecting your business or home to a Virtual Power Plant (VPP). This is available twice, with at least 3 years between claims.
Even with recent updates as of September 10th from the NSW Government, there is still uncertainty around how the incentive will play out in its infancy.
From our understanding, not all batteries are eligible for the scheme, including popular batteries like Sungrow, BYD, and possibly Tesla Powerwall? (See table below).
The new PDRS rule change in September 2024 outlines that the NSW Government have amended the strict <3.65 MWh of throughput per kWh to be only installations after 1 April 2026, and 2.8 MWh before 1 April 2026.
There are 3 possible ways this could play out.
Battery manufacturers will adjust their documentation to fit the scheme’s criteria and allow customers to take full advantage
The more prominent brands stick to their guns, and the customer misses out on incentives on more reputable batteries
Or the requirements for the scheme will be adjusted to suit existing battery documentation and specifications
According to the ‘Peak
Demand Reduction Scheme’,
signed by Penelope Sharpe, the equipment requirements for the battery incentive for NSW are:
1. The End-User Equipment must be listed on the approved product list specified by the Scheme Administrator.
2. The End-User Equipment must have a usable battery capacity greater than 2 kWh and less than 28 kWh as recorded on the approved product list specified by the Scheme Administrator.
3. The End-User Equipment must have a minimum 6 years remaining on the warranty.
4. The End-User Equipment warranty must define the normal use conditions during the operation of the End-User Equipment as not being less than:
(a.) A minimum ambient temperature range of -10 °C to 50 °C
(b.)
2.8 MWh of energy throughput per kWh of usable capacity for implementations prior to 1 April 2026
3.65 MWh of energy throughput per kWh of usable capacity for implementations after 1 April 2026.
5. Participation in the activity must not void or diminish the End-User Equipment warranty below a guarantee of at least seventy percent (70%) of Usable Capacity being retained 10 years from the date the End-User Equipment was installed at the site.
Below is a table of reputable battery storage units that we install. Here we outline each unit's specifications and if they are fit the current criteria for incentive eligibility. Fits Requirements, Does not fit Requirements, Unknown
| BATTERY REBATE REQUIREMENTS |
(1) |
(2) |
(3) |
(4a) |
(4b) |
(4b) |
(5) |
| Approved List | 2-28 kWh | <6-year warranty | -10 °C to 50 °C Temp. range | <2.8MWh throughput per kWh (Pre-April 1 2026) | <3.65MWh throughput per kWh (Post-April 1 2026) |
<70% capacity after 10 yr |
|
|
Tesla Powerwall 2 |
TBA |
13.5 kWh |
10 Years | –20°C to 50°C | Unlimited / 2.8 MWh per kWh | Unlimited / 2.8 MWh per kWh | 70% |
|
Tesla Powerwall 3 |
TBA |
13.5 kWh | 10 Years | –20°C to 50°C | Unlimited / 2.8 MWh per kWh | Unlimited / 2.8 MWh per kWh | 70% |
|
Sungrow SBH series |
TBA |
10-25 kWh | 10 Years |
Charge：0 ℃ - 50 ℃ Discharge：-20 ℃ - 50 ℃ |
4.2 MWh per kWh | 4.2 MWh per kWh | 60% |
|
Sungrow SBR series |
TBA |
9.6-25.6 kWh | 10 Years | Charge：0 ℃ - 50 ℃ Discharge：-20 ℃ - 50 ℃ | 4.2 MWh per kWh | 4.2 MWh per kWh | 60% |
|
BYD Battery-box HVM |
TBA |
8.3-22.1 kWh | 10 Years | -10 °C to 50°C | 3.1 MWh per kWh | 3.1 MWh per kWh | 60% |
|
BYD Battery-box HVS |
TBA |
5.1-12.8 kWh | 10 Years | -10 °C to 50°C | 3 MWh per kWh | 3 MWh per kWh | 60% |
|
GOODWE Lynx Series LX F G2 |
TBA |
6.4-28.8 kWh | 10 Years | Charge: 0 ~ 50; Discharge: -20 ~ 50 | 2.5 MWh per kWh | 2.5 MWh per kWh |
70% |
|
LG RESU12 |
TBA |
11.7 kWh | 10 Years | -10 to 50°C |
3.3 MWh per kWh |
3.3 MWh per kWh |
60% |
The recent Scheme update indicates that the requirements have changed to allow for the inclusion of more battery options.
According to the battery rebate requirement changes, it may open the incentive up to Tesla Powerwall, which we would assume would be on the rebate's approved list.
Unfortunately, with the current requirements, batteries from brands like Sungrow and BYD batteries are not eligible due to their usable capacity at 10 years' being lower than required.
Some of the battery manufacturers may alter their datasheets and warranties without adjusting their technology, to meet the requirements.
Current eligible batteries for the rebate include SolaX, Sonnen, Alpha-ESS, and Zenaji of which we do not install. However, it is unclear what batteries will be on the approved rebate list.
'For installations that occur before 1 April 2026, batteries must be warranted to a cumulative energy throughput equivalent to 2.8 MWh/kWh. This value accepts the conservative approach used by some market-leading manufacturers and allows for a high degree of consumer choice when it comes to selecting a brand and model of battery.'
By signing up, we can keep you in the loop with the latest news about the Battery rebate!
Approved Product List: The specified product list will include an approved list of batteries that meet quality and safety standards. This is not referring to the CEC approved battery list, rather the specific Scheme Administrator list which is yet to be released.
Useable Capacity: With the range of 2-28 kWh of usable capacity, it refers to the amount of energy a battery can actually store and distribute. This will be slightly less than the nominal total capacity. According to the NSW Government’s website, a typical 5-person household consumes about 25kWh per day.
Warranty Duration: Battery manufacturers are required to have at least 6 years of warranty to ensure long-term protection. However, the batteries we install like Tesla Powerwall, and Sungrow & BYD batteries all come with 10-year warranties. This confirms your unit is covered in the event of any failures.
Warranty Conditions: The temperature range is specified to ensure the battery will perform reliably in various climates. Some batteries have multiple temperature ranges which may make things confusing.
Throughputs refer to how long a battery can last with a significant number of charging and discharging cycles. This is to confirm you are getting the most value for money and avoid premature failure. This is where a lot of batteries fail as their throughput figure is lower than the requirement, as seen with Tesla Powerwall.
70% Remaining Capacity: Over the course of 10 years, batteries will have an expected degradation, which is measured of the remaining available usable capacity. Sungrow and BYD batteries reach 60% remaining usable capacity at the 10-year mark, and Tesla Powerwall with 70% remaining, according to their datasheets.
With such a successful solar rebate over the past few years, we, and other solar and battery companies are really excited as to how this scheme could play out and benefit everyone.
There may currently be customers that are expecting to receive incentives on any battery system, but according to recent updates and requirements, not all batteries will be available.
The popular system you may be interested in, might not be available due to the criteria standard set by the NSW Government.
However, there’s good news.. there are other strategies that take advantage of battery storage for a great return-on-investment.
Unfortunately, we can’t at this stage include any rebate / scheme deductions with battery systems, as specific pricing is still yet to be revealed. However, as a lot of people look to install batteries, installing solar now can ensure you’re eligible for the scheme’s commencement.
If you hold off on getting both a battery and a solar system until the scheme is available, there may be delays in taking advantage of
the scheme due to the installation of solar and the increased demand.
By investing solar in now and a battery
solution later, you get in first and avoid the rebate rush.
Amber allows customers to access the wholesale energy market, and buy cheap energy, and sell that and excess solar to the grid for returns. This is a safer bet for those who just want to save right now, as it is currently available.
By the time the rebate commences, we predict that prices will increase due to market demand of available battery units which may alleviate most of the discount that you may have been expecting. You can invest in your battery now, join Amber, and potentially earn back the same amount you would save if you were to wait for the scheme to commence.
Some members of our team have joined Amber with their solar and battery systems, and have been able to earn up to $220 in one day by selling their stored energy through peak demand spike periods.
As an installer of battery storage solutions throughout the Hunter, Central Coast, and Mid & North Coast regions, we genuinely want to see more property owners access the battery storage market with discounts on batteries, to take advantage of the energy they produce. It’s a win-win for NSW’s energy, us, and most importantly, you the customer.
There is so much potential from a program of this scale, similar to how the solar rebate played out. That was well-refined, and many
residents chose to participate in the worthwhile benefits. We want to see reputable brands be eligible for the incentive to ensure
quality and long-lasting battery installations all through NSW.
Battery storage is a great way to store excess solar generated throughout the day to be consumed through peak demand periods. Battery owners can maximise their solar investment, reducing energy costs and grid demand, whilst also contributing to grid stability and reduced emission targets.
Who is the Battery Scheme for? The rebate is for people who are looking to invest in solar batteries, to help more Australians gain access to this evolving technology.
Until we get a better understanding of the mechanics of the battery rebate scheme in NSW, we can only speculate about the potential benefits of the scheme as certain aspects will indicate its trajectory, such as the Approved product list which is being specified by the Scheme Administrator.
If you’re interested in keeping up to date with how the scheme will play out, consider signing up to our updates list and we will send you any new information we have about the battery incentive scheme.
Sources
https://www.energy.gov.au/solar/financial-benefits-solar/government-rebates-and-loans-solar
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