30% Discount On Battery.
Cheaper Home Batteries Program: Australian households, businesses and community organisations can now get a discount of around 30% on the upfront cost of installing small-scale battery systems (5 kWh to 100 kWh). From:
Cheaper Home Batteries Program
The $2.3 billion Cheaper Home Batteries Program is now available to help more people install batteries.
Australia is a world leader in rooftop solar with more than 4 million rooftop solar PV systems, however only one in 40 households have installed batteries. The high upfront cost of batteries means installing batteries is out of reach for many households and businesses.
Australian households, businesses and community organisations can now get a discount of around 30% on the upfront cost of installing small-scale battery systems (5 kWh to 100 kWh).
The discount is:
- available for batteries connected to new or existing solar PV systems
- funded by the government to ensure no extra costs are passed on to consumers
- based on the battery’s usable capacity and the number of small-scale technology certificates the battery is eligible for
- going to be reviewed at least annually and will gradually decrease until 2030, in line with reducing battery prices.
Eligibility for the discount is subject to requirements in the Renewable Energy (Electricity) Amendment (Cheaper Home Batteries Program) Regulations 2025 being met.
The program is administered by the Clean Energy Regulator (CER) and the government is funding the discount.
The program is:
- helping participating households, businesses and community organisations reduce electricity bills by making the most of cheap and clean solar power by storing it for when it is needed
- lowering costs for everyone - not just those who install a battery – by reducing peak demand and creating a more stable electricity grid
- communicating responsibilities for retailers, installers and consumers to ensure batteries are bought and installed legally, safely and for permanent use.
Peak Demand Reduction Scheme (PDRS)
The Peak Demand Reduction Scheme (PDRS) aims to reduce peak electricity demand in NSW.
To reduce demand, the scheme is providing financial incentives to households and businesses to reduce energy consumption during hours of high peak demand for:
- residential batteries
- air conditioners
- pool pumps
- large heat pump water heaters
- commercial refrigerated cabinets.
By reducing electricity consumption of households and businesses when demand is high, we'll help lower the cost of electricity and reduce the risk of power outages in NSW. This will help households and businesses in NSW save around $1.2 billion on their bills between 2022 and 2040.
By shifting the times when electricity is used and using more renewable energy generation in the system, we’ll help hit NSW targets of reducing emissions by 70% by 2035 and achieving net zero by 2050.
The latest Peak Demand Reduction Scheme Rule
The PDRS Rule was published on 6 September 2024 .
We’ve made changes to existing activities, including:
- limiting the commercial water heater activity to larger units that cannot receive Small Scale Renewable Energy Scheme incentives
- remove the removal of old fridges and freezers activity
- remove the installation of high-efficiency motors activity
- revising the baselines and calculations for installing high-efficiency pool pumps.
These changes will commence on 1 August 2024.
We've also introduced new incentives for households and small businesses to install and operate residential batteries. These incentives will support:
- installation of a new behind-the-meter battery energy storage system (BESS)
- participation in a Virtual Power Plant (VPP) to allow partial dispatch of your battery when it’s needed to support the grid.
These changes will commence on 1 November 2024.
On 6 September 2024, an updated PDRS Rule was published that amends the equipment requirements for the battery incentives that commence on 1 November 2024.
What is eligible for NSW Battery Incentives?
Under the PDRS, you can claim Peak Reduction Certificates for the following types of battery activities:
- New battery installation
- Connecting a battery to a VPP
Customers may be eligible to claim both rebates.