NSW battery and VPP incentives target peak electricity demand reductions

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The New South Wales (NSW) government battery incentive scheme has been brought online, on 1 November 2024, to incentivise residents and business owners with rooftop solar installations to invest in battery storage.

Launched in May 2024, the incentive is part of the Peak Demand Reduction Scheme (PDRS) which aims to reduce peak electricity demand in NSW by providing financial incentive to reduce energy consumption during high peak hours.

Encouraging uptake of behind-the-meter battery storage and participation in virtual power plants (VPP) to allow for battery energy dispatch as needed by the grid,  will make the grid more reliable and stable and allow the continued to reduction of reliance on fossil fuels during peak demand.

Eligibility includes having solar panels already installed, the choice of battery must be between 2 kWh and 28 kWh, and installation must be completed by an accredited certificate provider (ACP).

Discounts for battery installations range from $770 to $1,150 for a new 6.5 kWh battery, or $1,600 and $2,400 for a new 13.5 kWh battery, and for VPP connection, between $250 and $400, which can be claimed a second time, three years after installation.

In other states and territories, battery subsidies are offered in the Australian Capital Territory (ACT) through the Sustainable Household Scheme, which provides zero-interest loans between $2,000 and $15,000 to help with energy efficient upgrades, such as solar and batteries.

Victoria’s solar battery loans are interest-free up to $8,000, with 922 still remaining for uptake in the FY 2024-25, and the Northern Territory’s home and business battery scheme offers a grant of $400 per kWh, up to a maximum of $5,000.

No battery incentives or rebates are currently available in Queensland, Tasmania, South Australia or Western Australia.

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