Starting November 2024, New South Wales residents and small businesses can access a new government incentive aimed at lowering the cost of battery storage installations. This initiative supports renewable energy adoption, reduces electricity bills, and helps the state achieve its ambitious environmental goals, including a 70% emissions reduction by 2035 and net-zero by 2050.
Why Install a Battery?
Battery systems provide homeowners and businesses with the ability to store excess energy generated from solar panels for use at a later time, rather than relying on the grid. This not only cuts down on electricity costs but also ensures power availability during outages. Additionally, widespread battery adoption helps to stabilise the energy grid and reduces reliance on fossil fuels, contributing to the state's overall emission reduction targets.
How Does the Incentive Work?
Unlike traditional rebates, this incentive reduces upfront installation costs via accredited suppliers, based on the battery’s capacity in kilowatt-hours (kWh). Larger batteries receive bigger discounts. For example, a 6.5 kWh battery qualifies for a discount of between $770 and $1,150, while a 13.5 kWh battery offers savings between $1,600 and $2,400. Whether you’re adding a battery to an existing solar system or installing both simultaneously, these savings apply.
Steps to Install a Battery and Receive the Discount
- Choose an Accredited Installer
To take advantage of the incentive, you must select an installer who works with a government-accredited supplier. These suppliers are responsible for passing the discount onto you. To ensure the best price, it’s advisable to obtain quotes from several installers. - Select an Eligible Battery
The battery must meet specific performance and warranty standards. Your installer can help you choose a compatible battery that qualifies for the discount. Some systems may require a compatible inverter, so it’s important to confirm any additional equipment needs to avoid unexpected costs. - Sign the Nomination Form
You’ll need to sign a nomination form, allowing your installer to claim the discount on your behalf. Additionally, a contract will be signed to outline the work to be completed. - Schedule Installation
Once the paperwork is finalised, your installer will set up the installation and manage any required documentation to connect the battery to the grid. They will also coordinate with your electricity retailer on your behalf.
Consumer Protection and Availability
It’s important to note that your rights are protected under Australian Consumer Law, providing recourse if issues arise with either the product or the installation service. However, not all accredited suppliers may operate in every region, so it’s worth checking availability in your area.
Additional Considerations
One unique aspect of the incentive is the opportunity to earn extra savings by connecting your battery to a Virtual Power Plant (VPP). This can net you an additional $25 per kWh. If you opt into a VPP at a later date, you can still claim this benefit, provided the battery has at least six years of warranty remaining.
While the scheme is widely referred to as a "rebate", technically it functions as an upfront discount that your installer claims on your behalf—cutting out the complexity of applying for cash-back after purchase.
Final Thoughts
This new battery incentive represents a significant opportunity for NSW residents and small businesses to embrace renewable energy, lower energy costs, and contribute to the state's environmental targets. By following the outlined steps, you can ensure a smooth installation process and take full advantage of the financial benefits available. As the scheme launches in November 2024, it's an ideal time to explore your battery storage options and make a greener investment in your future.
Article information source: energy.nsw.gov.au
