Billy and Boris with an Enphase Battery Controller

NSW Solar Battery Rebate

Billy and Boris with an Enphase Battery Controller
Use an Enphase Battery to Attract a Financial Incentive from the NSW Solar Battery Rebate

An Overview of the NSW Solar Battery Rebate

The NSW Solar Battery Rebate is part of the Peak Demand Reduction Scheme. A customer can install a battery with their solar panels and in return they get some Peak Demand Reduction Certificates (PRCs). The PRCs are traded for cash money and as a result the customer will enjoy some savings as a benefit :)! The Peak Demand Reduction Scheme “aims to reduce peak electricity demand in NSW”. The scheme started in 2022 and is expected to be in place until 2050. There are other products like hot water heat pumps that can attract PRCs.

the two parts of the NSW Solar Battery Rebate

There are two implementations that attract PRCs for customers who use a solar battery. The amount of PRCs that you can get for a particular installation is determined by an Accredited Certificate Provider (ACP). The ACPs are listed here on the NSW IPART website. Established solar companies like us will be hoping that the guys we normally use for our small technology certificates (STCs) will become accredited ACPs under the scheme so that we can administer the rebates efficiently. Anyway the first implementation that an ACP can create PRCs for is for the installation of a solar battery. The second implementation that an ACP can create PRCs for is for customers that use their battery in a Virtual Power Plant (VPP). Both parts can be used for the same installation, it is up to the end user. 

Part 1 - Install a New Behind The Meter Battery Energy Storage System

PRCs are generated simply when you install a new battery. My professional opinion is that this is the better of the two parts. There are some eligibility requirements discussed in detail below. However, some key points will be noted. Only new battery installations will count. The battery must be an approved product. The NSW Government released a consultation paper back in October 2023 that stated CEC Approved Batteries are intended to automatically qualify as approved products. If you are a technical person and require further details refer to Peak Demand Reduction Scheme (Amendment No. 1) Rule 2024. If you are a potential client that’s probably going to be way too much information for most people. So please read on 🙂

Part 2 - Sign a Behind the Meter Battery Energy Storage System Up to a Demand Response Contract

In simple terms, this just means sign up to a VPP. A fancy type of energy retail contract. The pro is you get some extra PRCs and the con is that you need to stay with that particular VPP for 3 years. After that 3 year period if your battery still has at least 6 years of warranty you can apply for more PRCs if you extend your VPP contract. This activity only attracts few to several hundred dollars and requires a fair amount of participation from the end user. I would assume that the ACPs will administer this directly with the end user. 

How Much Will the NSW Solar Battery Rebate Save Customers?

This is probably the most eagerly anticipated question of them all. So now we know how we get the PRCs we need to know how much money does a PRC attract. A single PRC right now will attract about $2.15 inc. GST. Out of that you need to subtract an administration and quality control fee to pay the ACP for their services. So for conversation sake we will assume that a PRC attracts a financial benefit to the end user of $2.00 inc. GST. The pricing of PRCs is a spot price that is susceptible to change with supply and demand. As demonstrated in the last year worth of data provided by Demand Manager in the graph below.

PRC pricing for last 12 months
PRC Pricing for the last 12 Months - Significantly variable.

Tesla Powerwall 2 - NSW Solar Battery Rebate Savings

A quality Tesla Powerwall 2 battery installation will start at around $15,000 inc GST and will increase in cost with difficulty of installation. So how much money will the NSW Solar Battery Rebate save customers? Calculations based on address located in the Ausgrid Network area.

Part 1 - Installation of a Tesla Powerwall 2

An eligible installation of a Tesla Powerwall 2 will attract 1077 PRCs. As a result, using current pricing estimates of a $2.00 per PRC benefit the total saving for part 1 would be $2,154 inc. GST.

Part 2 - Use the Tesla Powerwall 2 in a VPP

An eligible implementation will attract 163 PRCs. As a result, using current pricing estimates of a $2.00 per PRC benefit the total saving for part 1 would be $326 inc. GST.

A photo of 2 x Tesla Powerwall 2 Batteries
Tesla Powerwall 2 Twins

Sungrow - NSW Solar Battery Rebate Savings

Here at Tru Blu Solar Co we love using the Sungrow Battery solutions. This is an excellent product that can be used for full home backup capability and in many cases can reduce your power bill to zero! In the examples below we will assume that we are using a 19.2kWh Sungrow Battery on a property located in the Ausgrid Network area.

Part 1 - Installation of a 19.2kWh Sungrow Battery

An eligible installation of a 19.2kWh Sungrow Battery will attract 1532 PRCs. As a result, using current pricing estimates of a $2.00 per PRC benefit the total saving for part 1 would be $3,064 inc. GST.

Part 2 - Use the Sungrow 19.2kWh Battery in a VPP

An eligible implementation will attract 232 PRCs. As a result, using current pricing estimates of a $2.00 per PRC benefit the total saving for part 1 would be $464 inc. GST.

A photo of a 19.2kWh Sungrow Battery
19.2kWh Sungrow Battery Installation Umina Beach

How To Calculate Peak Demand Reduction Certificates

If you really want to spend hours learning how to do this for yourself you can head on over to the Peak Demand Reduction Scheme (Amendment No. 1) Rule 2024 and give it a read and practice the calculations for yourself. Or if you just want to know how to do it for your solar and battery installation you can use the formulas that I have derived. These are 100 times easier to use than the Peak Demand Reduction Scheme (Amendment No. 1) Rule 2024 itself. 

Part 1 Calculations - Installation of An Eligible Solar Battery

The PRC calculations for eligible installations of solar battery systems can be done with the formula below. All you need to do is plug in your battery capacity and figure out which network area you belong to and wallah! You have successfully figured out how many PRCs you can generate for your installation. 

Formula to Calculate PRCs for the Installation of an Eligible Solar Battery
Formula to Calculate PRCs for the Installation of an Eligible Solar Battery

Part 2 Calculations - Participate in an Eligible VPP

The PRC calculations for VPP participants with eligible solar battery systems can be done with the formula below. All you need to do is plug in your battery capacity and figure out which network area you belong to and wallah! You have successfully figured out how many PRCs you can generate if your participate in an eligible VPP.

Formula to Calculate PRCs for Eligible VPP Participants
Formula to Calculate PRCs for Eligible VPP Participants

So when Will the NSW Solar Battery Rebate Be Available?

The NSW Solar Battery Rebate is planned to start on the 1st of November 2024. Given the disruption this will cause to the solar industry we are hoping that industry figures can collaborate with government to bring forward the eligibility date. The only problem will be that ACPs may not yet be ready to administer the program at scale. However, companies that wish to take the risk and wait for the ACPs to be ready should be allowed to do so. Provided that the implementation date is acceptable, Tru Blu Solar Co would be more than happy to offer upfront discounts on solar and battery systems to its customers regardless if the ACPs were ready to administer the program yet or not. The industry is ready! Don’t hold us back!

Want More Info About The NSW Solar Battery Rebate? Drop Us A Line

NSW Solar Battery Rebate Eligibility

For the full explanation and a thorough representation of the eligibility requirements it is recommended that you get advice directly from the scheme operator IPART. However, I will list the criteria that is most critical.

Part 1 Eligibility

  1. There must not be an existing battery installed at the same National Metering Identifier(s).
  2. A behind the meter solar photovoltaic system must be installed at the same National Metering Identifier(s) that the End-User Equipment is being installed.
  3. The End-User Equipment must be listed on an approved product list specified by the Scheme Administrator.
  4. 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.
  5. The End-User Equipment must be internet connectable and controllable by a Demand Response Aggregator.
  6. The End-User Equipment must have a warranty of at least 10 years and guarantee that at least seventy percent (70%) of Usable Capacity is retained 10 years from the date the End-User Equipment is installed at the site.
  7. 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, and (b), A minimum warranted throughput of 3.65 MWh per kWh of Usable Battery Capacity.
  8. The End-User Equipment must be installed in accordance with AS/NZS 5139.
  9. The End-User Equipment must be installed by an installer on an approved installer list specified by the Scheme Administrator.
  10. The activity must be performed by a suitably Licensed person in compliance with the relevant standards and legislation.
  11. The installation of this End-User Equipment must be registered on the DER Register.
  12. Where the battery energy storage system is installed indoors, a working smoke alarm that meets AS 3786 must be installed in the immediate vicinity.

Part 2 Eligibility

  1. There must be an existing battery energy storage system installed at the National Metering Identifier(s).
  2. A behind the meter solar photovoltaic system must be installed at the same National Metering Identifier(s) as the existing battery energy storage system.
  3. There must not be any Life Support Equipment used at the Site.
  4. The End-User Equipment must be listed on the approved product list specified by the Scheme Administrator.
  5. 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.
  6. The End-User Equipment must have a minimum 6 years remaining on the warranty.
  7. 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), A minimum warranted throughput of 3.65 MWh per kWh of Usable Battery Capacity.
  8. 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.
  9. The internet connection and Demand Response Aggregator control of the End-User Equipment must be demonstrated to be operational to the satisfaction of the Scheme Administrator.  
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