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Everything You Need to Know About the NSW Solar Battery Rebate

Everything You Need to Know About the NSW Solar Battery Rebate

The NSW solar battery rebate is the next step in the Peak Demand Reduction Scheme. By working alongside an accredited certificate provider (ACP) for battery installation, Peak Reduction Certificates (PRCs) can be generated. PRCs are traded and the discount is shown in the net pricing for the solar system / battery retrofit quote.

1 PRC is equal to 0.1 kW of peak demand reduced, averaged over one hour during the peak summer period. This is designed to promote a decrease in energy usage during peak demand periods, which helps alleviate strain on the power grid and ultimately leads to lower energy costs. The scheme started in 2022 and will continue until 2050. Other products that generate PRCs include heat pumps.

Solar homeowners will be able to get discounted solar batteries, starting November 1, 2024. Solar batteries help save money on electricity bills by storing excess solar energy produced during the daytime for later consumption, as well as back up your home in the case of a blackout and improve the electricity grid.

How much money does a PRC attract?

Currently, a single PRC attracts about $2.15 including GST. After deducting an administration and quality control fee, the financial benefit to the end user will be approximately sub-$2.00 including GST for example. The pricing of PRCs is subject to change based on supply and demand.

Below is a graph showing PRC prices in the last 12 months, provided by Demand Manager:

How to Earn PRCs

A list of ACPs is listed here. Established solar companies work alongside ACPs to claim government rebates, by allowing ACPs to generate small-scale technology certificates (STCs) and PRCs, which are in turn sold and the rebate provided.

All that is needed to generate PRCs is the installation of a solar battery:

  • In monetary terms, the new incentive included between $1,600 and $2,400 off the up-front installation cost of a household battery for homes and business with existing solar.
  • Only new battery installations will be eligible.
  • The battery must be an approved product. A list of approved batteries is available here.
  • For more information, refer to Peak Demand Reduction Scheme (Amendment No. 1) Rule 2024.

A further $250 to $400 incentive is offered for connecting a battery to a Virtual Power Plant (VPP):

  • A VPP allows the energy stored in individual batteries to be aggregated and used to support the grid during high-demand periods, while also providing benefits to the homeowners in terms of lower energy costs. A VPP creates a network, for sharing, selling, and buying energy, between battery systems in the area.
  • It can be claimed a second time, 3 years on.
  • The downside is that the battery system owner has to stay with the chosen VPP for 3 years.

How Much Rebate on a Tesla Powerwall II

The most prominent battery on the market is the Tesla Powerwall II battery. Its sleek exterior is space-age, and the battery features a 5kW battery inverter which means that the battery can be fed AC (alternating current) electricity. This means there is no need for a hybrid inverter as there is no need for DC coupling. The Powerwall II has a capacity of 13.5kWh. The Powerwall II comes with a 10-year comprehensive warranty.

The market price for a Tesla Powerwall II battery installed starts around $15,000 including GST installed. Calculations based on addresses in the Ausgrid area are as follows:

  • An eligible Tesla Powerwall II installation will earn 1077 PRCs. Using $2 per PRC, the battery will be discounted by $2,154 including GST.
  • By signing up to a VPP, a further 163 PRCs will be earned. Using $2 per PRC, the battery will be discounted a further $326 including GST.

How Much Rebate on a Sungrow Battery

Sungrow’s SBR HV battery is stackable and starts at 9.6 kWh. Each battery module has a capacity of 3.2kWh. The SBR comes with a 10-year warranty.

Calculations using the 3 module Sungrow battery option (9.6 kWh) based on addresses in the Ausgrid area are as follows:

  • An eligible Sungrow battery installation will earn 766 PRCs. Using $2 per PRC, the battery will be discounted by $1,532 including GST.
  • By signing up to a VPP, a further 116 PRCs will be earned. Using $2 per PRC, the battery will be discounted a further $232 including GST.

How PRCs are calculated

A guide to calculating PRCs exists here.

To simplify the process of calculating PRCs, two simple formulas are as follows below.

For calculating battery installation rebate:

  • PRCs = battery capacity (kWh) x network loss factor x 76.77.

For calculating rebate for joining a VPP:

  • PRCs = battery capacity (kWh) x network loss factor x 11.646.

Network loss factor is as follows:

Criteria for Eligibility

For a more in-depth guide to eligibility, it is recommended to speak directly to IPART.

For battery installation:

  1. No existing battery at the same National Metering Identifier(s).
  2. Solar PV system installed at the same location.
  3. End-User Equipment listed on approved product list.
  4. Usable battery capacity between 2 kWh and 28 kWh.
  5. Internet connectable and controllable by a Demand Response Aggregator.
  6. Warranty of at least 10 years with 70% usable capacity retention.
  7. Installed in compliance with AS/NZS 5139 by an approved installer.
  8. Registered on the DER Register.
  9. Smoke alarm required for indoor installations.

For joining a VPP:

  1. Existing battery energy storage system at the National Metering Identifier(s).
  2. Solar PV system installed at the same location.
  3. No Life Support Equipment used.
  4. End-User Equipment listed on approved product list.
  5. Usable battery capacity between 2 kWh and 28 kWh.
  6. Minimum 6 years remaining on warranty.
  7. Operational internet connection and control demonstrated to the Scheme Administrator.

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