The New South Wales (NSW) government has introduced a new financial incentive for household batteries under the Peak Demand Reduction Scheme (PDRS), effective from November 1, 2024.
This initiative aims to accelerate the transition towards renewable energy and reduce peak electricity demand.
Solar Citizens, a renewable energy advocacy group, has welcomed the move, highlighting its potential to democratise the energy system.
Heidi Lee Douglas, CEO of Solar Citizens, stated: “The introduction of the new battery incentive under the Peak Demand Reduction Scheme shows that the NSW government is taking consumer energy resources seriously.”
Under the scheme, NSW households and businesses with existing or planned solar panel installations can save between $770 and $2,400 on the upfront cost of a new behind-the-meter battery.
This incentive is designed to make energy storage more accessible, as solar batteries typically cost upwards of $10,000 with payback periods ranging from 5 to 10 years.
The PDRS also offers an additional $250 to $400 for connecting new batteries to a Virtual Power Plant (VPP), a coordinated network of solar batteries that supports the electricity grid.
This incentive can be combined with the Commonwealth’s Small-scale Renewable Energy Scheme, potentially providing significant savings for NSW residents.
The Australian Energy Market Operator (AEMO) has projected that the equivalent of one million household batteries will be needed nationally by 2030 to stabilise the energy grid and harness Australia’s world-leading rooftop solar uptake.
In light of this, Solar Citizens is calling for both state and federal governments to provide similar financial incentives to increase the number of behind-the-meter batteries in the system.
To be eligible for the incentives, batteries must be listed on the Clean Energy Council’s list of approved batteries.
Consumers can redeem these incentives directly through accredited solar battery installers, who will calculate the relevant discounts when providing quotes for installation.
This initiative represents a significant step towards NSW’s renewable energy goals and demonstrates the state’s commitment to supporting consumer-driven clean energy solutions.
