NSW Solar Battery Incentives Boosted: Doubling Rebates for Households and Small Businesses
From July 1, New South Wales (NSW) households and small businesses can benefit from a significantly enhanced solar battery incentive program, as the current state initiative transitions to a federal scheme. The collaborative effort from the NSW and federal governments aims to strengthen the energy grid and alleviate rising energy costs.
Eligible households and businesses will receive a rebate of up to $1,500 for the installation of a solar battery connected to the grid, an increase from the previous $800 incentive. Additionally, participants can engage with virtual power plants—aggregated solar batteries that facilitate the sale of excess stored energy back to the grid—thus promoting energy efficiency.
The federal government’s $2.3 billion Cheaper Home Batteries Program, launching next month, will further aid households by offering rebates that cover approximately 30% of battery costs. This incentive is nearly double the amount previously available from the NSW scheme, which is set to conclude on June 30.
To illustrate the benefits, a household installing a typical 6 kWh battery could receive a federal rebate of approximately $2,232, alongside a NSW incentive of around $444. For an 11.5 kWh system, the federal subsidy rises to about $4,278, while the NSW incentive would be roughly $850. Larger installations, such as a 27 kWh battery—generally priced above $30,000—would yield a federal rebate of about $10,000 and the maximum NSW rebate of $1,500.
Despite approximately 4 million households in NSW having rooftop solar installations, only 4.5% are equipped with batteries, indicating substantial room for growth in this sector.
Climate Change and Energy Minister Chris Bowen expressed optimism regarding the initiative, stating that enhancing battery storage is beneficial for both household bills and overall grid stability. He noted, “The Albanese and Minns Labor Governments are working together to double the benefits available to NSW households and small businesses,” and highlighted the aim of providing accessible solar energy throughout the day and night.
NSW Minister for Climate Change and Energy Penny Sharpe reinforced the critical role of virtual power plants in securing the energy grid’s future, emphasising that increased battery uptake reduces overall grid demand, which in turn helps to keep energy prices down for all consumers.
The current NSW battery incentive has been active since November and has successfully facilitated over 11,400 battery installations in a short period. Previously, discounts ranged depending on battery size: between $770 and $1,150 for a 6.5 kWh battery, and from $1,600 to $2,400 for a 13.5 kWh battery.
In summary, the upcoming changes in the NSW solar battery incentive programme represent a concerted effort to make solar energy more accessible and affordable for residents, ultimately working towards a more sustainable and resilient energy future for the state. As the transition occurs, it presents a significant opportunity for households and small businesses to save on energy costs while contributing to a greener environment.
