Starting November 2024, New South Wales introduced battery rebates under the Peak Demand Reduction Scheme (PDRS) to incentivise battery storage and Virtual Power Plant (VPP) adoption. Homeowners and businesses with solar systems can access rebates of $1,600–$2,400 for installing residential batteries and an additional $250–$400 for connecting to a VPP. These incentives aim to reduce electricity costs, increase solar energy use, and stabilise the grid. The program supports NSW’s emission reduction goals of 70% by 2035 and net zero by 2050. Accredited suppliers can assist eligible customers with installations.
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NSW battery rebate eligibility criteria
To be eligible for the NSW battery rebate under the Peak Demand Reduction Scheme (PDRS), applicants must meet the following criteria:
- Battery Type and Capacity: The battery must have a capacity between 2kWh and 28kWh and be listed on the Clean Energy Council’s approved products list.
- Solar System Requirement: Applicants must already have a solar system installed or be installing one alongside the battery.
- Warranty and Registration: The battery must include a minimum 10-year warranty, ensuring at least 70% of usable capacity, and be registered on the Distributed Energy Resources (DER) register.
- Property Conditions: The property must not already have a battery, and eligibility is determined based on the National Meter Identifier (NMI).
- Safety Measures: A smoke alarm must be installed near the battery.
- Customer Contribution: Applicants must contribute at least $200 towards the battery installation.
Additionally, batteries connected to a Virtual Power Plant (VPP) may be eligible for further incentives. The scheme prioritises encouraging new battery installations to help reduce peak energy demand in NSW.
How much of a battery rebate will I get?
The NSW battery rebate under the Peak Demand Reduction Scheme (PDRS) offers homeowners and businesses an upfront discount of $1,600 to $2,400 on eligible battery installations. Additionally, if the battery is connected to a Virtual Power Plant (VPP), customers can receive an extra incentive of $250 to $400 as cashback. The exact rebate amount depends on the battery’s capacity and how effectively it contributes to reducing peak energy demand. This discount is typically applied at the time of installation by accredited suppliers.
What is an accredited installer?
An accredited installer for the NSW battery rebate scheme is a professional or company certified to install batteries and solar systems in compliance with the scheme’s requirements. These installers must meet high safety and performance standards, ensuring installations are eligible for the Peak Demand Reduction Scheme (PDRS). Accredited installers handle all aspects of the rebate application, including ensuring the battery system is from the approved product list and meets warranty and capacity requirements. Using an accredited installer guarantees access to government incentives and ensures the system operates efficiently and safely.
How can I get a quote for a battery in NSW?
Energy Matters works with accredited installers across NSW who can provide you with FREE quotes for a battery. All quotes provided are obligation-free. To begin, request free battery quotes and select the checkbox ‘Only want to be contacted by installers offering state-based incentives‘.
What is the Peak Demand Reduction Scheme?
The Peak Demand Reduction Scheme (PDRS) in New South Wales is a government initiative designed to reduce pressure on the electricity grid during peak demand periods. It encourages energy-efficient upgrades and the adoption of technologies like residential batteries and Virtual Power Plants (VPPs). By promoting better energy use and storage solutions, the scheme aims to optimise solar energy consumption, lower electricity costs, and improve grid reliability. The PDRS also contributes to NSW’s broader goals of cutting greenhouse gas emissions by 70% by 2035 and achieving net zero emissions by 2050.
If you want to learn about solar battery installation in Australia, our solar power and battery storage calculator is simple! Just enter your postcode and average daily power consumption in kWh. The solar calculator will generate performance information and potential savings. We can send this information to 3 trusted local installers in your area to receive obligation-free quotes.
Why should I add a battery to my solar system?
Adding a battery to your solar system in NSW enhances energy independence, reduces electricity bills, and maximises solar energy usage. Batteries store excess solar power generated during the day, allowing you to use it at night or during peak demand periods when electricity rates are highest. With the NSW battery rebate under the Peak Demand Reduction Scheme (PDRS), you can save up to $2,400 on installation costs, making it more affordable. Additionally, connecting to a Virtual Power Plant (VPP) can provide extra incentives and help support grid stability, contributing to a sustainable energy future.
