The NSW Government will launch a new incentive to make household batteries more accessible and affordable for NSW residents.
Households and businesses with solar panels on their roofs will be able to buy a cheaper, subsidised battery to store solar energy generated when the sun is shining.
This will help get the most out of their solar, by allowing them to use it around the clock. It will also reduce their energy bills and boost the reliability of the state-wide electricity grid.
The new incentive is part of the Peak Demand Reduction Scheme and includes:
- Between $1600 and $2400 off the up-front installation cost of a household battery for homes and business with existing solar.
- For homes and businesses wanting to install solar, the incentive will be considered in the quote for a new solar and battery system installation.
- A $250 to $400 incentive for connecting a battery to a Virtual Power Plant. It can be claimed a second time, 3 years on.
By connecting batteries in Virtual Power Plants, households and businesses can collectively share capacity across the energy grid.
The incentives will be available from 1 November 2024 and will be accessed through approved suppliers, which will become accredited over the coming months.
The expansion of the scheme follows extensive consultation with companies who specialise in the orchestration of household batteries, like Reposit Power in the Blacktown electorate.
Find out more information about the NSW Government's household battery incentive program.
Minister for Climate Change and Energy Penny Sharpe said:
"More than 1,000,000 NSW households have solar panels on their roofs and adding a battery will see them benefit around the clock, not just when the sun is shining.
"We are bringing down the upfront cost of batteries for households and businesses to make them more accessible.
"This is a targeted action to support those with solar to take the next step to lowering their bills by using renewable energy. It also supports the state's transition to renewable energy."
Member for Blacktown Stephen Bali said:
"This is a fantastic initiative for the households and businesses of western Sydney.
"Rooftop solar is already so popular and I know this saving will help people bring down their power bills and contribute to reducing greenhouse gas emissions."
Reposit Power CEO Dean Spaccavento said:
"The NSW Government's expansion of the Peak Demand Reduction Scheme to include household batteries is a win-win for residents and the electricity grid.
"Home batteries are now playing a crucial role in a cleaner, more secure energy future for NSW and earning money for their contribution.
"Homeowners can maximise the benefit they get from a battery system at their home by shopping around for deals that offer guaranteed bill reductions for at least 5 years."
Further information
What is a virtual power plant?
- Virtual Power Plants group the power produced by rooftop solar and stored in batteries, so it can be released into the grid where and when it's needed.
- Energy from virtual power plants is released into the grid to address frequency and voltage imbalances, local disruptions or disturbances and keep the network stable. Read more about virtual power plants and why they matter.
What is peak demand?
- Peak demand is when electricity usage is at its highest, such as in the middle of summer when millions of households turn on their air conditioners.
- The electricity grid is designed to be capable to meet that peak demand.
- If the level of peak demand can be lowered, we can reduce the amount of renewable energy infrastructure that needs to be built to keep the lights on.
- Building only the infrastructure we need saves NSW money.
