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The NSW Government is introducing a new program to help households and businesses save on the cost of solar battery installation and is to be implemented on 1 November 2024.
This new incentive is part of the Peak Demand Reduction Scheme (PDRS) and is being implemented to ensure that you’re getting the most out of your solar by allowing you to store the solar energy that your solar system is generating.
The rise of renewable energy, especially solar power, has significantly changed the pattern of peak demand on Australia's electricity grid. Previously, peak demand typically occurred around the middle of the day.
However, the abundance of solar energy now flowing into the grid during the midday hours is increasingly pushing wholesale prices down, sometimes even into the negative. While this is good news for consumers, it creates new challenges to the stability of the electricity system.
As solar energy can't contribute to the grid during the night, storing surplus daytime solar power in batteries is crucial to meet peak demand in the late afternoon and evening, and to enhance the overall stability of the electricity system. However, home battery storage systems, much like solar panels were in the past, are expensive.
This is where the PDRS comes in with new incentives for homes and businesses installing and using solar batteries, allowing you to use stored energy, spread throughout the day.
The incentives will be available from 1 November 2024 and are split into the installation rebate and the Virtual Power Plant (VPP) connection incentive.
The purpose of the upfront installation rebate is to reduce the upfront cost of battery installation, making energy storage more affordable and enhancing the use of generated solar power.
The rebate is between $1600 and $2400, depending on the size of the battery.
A Virtual Power Plant (VPP) is a network of connected solar batteries that work together to generate and manage energy flow, reducing reliance on the power grid during periods of high electricity demand.
The VPP incentive can actually be claimed twice over a 3 year interval. The purpose is to encourage the integration of batteries into VPPs, allowing stored energy to be shared across the grid, improving stability and efficiency.
The incentive amount is between $250 and $400, depending on the size of the battery.
To be eligible for the battery rebate, you must use an approved supplier under the PDRS to install the battery. The Accredited Certificate Providers (ACPs) are approved suppliers that have been accredited by the IPART and a list of them can be found here.
The battery must have a capacity of between 2 kWh to 28 kWh, which is the national average energy use for a 5 person household.
The installation incentive is exclusively for new battery installations. However, the VPP participation incentive is open to both new and existing batteries, as long as the existing battery is registered with a VPP, has at least 6 years of manufacturer's warranty remaining, and meets the specified equipment requirements.
To keep your home safe, it's important to follow all the Australian safety rules when installing a battery. This means picking the right kind of battery for your home and making sure there's enough space around it for air to flow and keep it cool. It's also really important to have a professional install your battery. They know how to do it safely and make sure it works the way it should, which helps prevent the battery from getting too hot.
Have questions about the NSW Solar Battery Incentive or ready to install a battery? Give our Innovate team a call at 0420 798 861.
References:
NSW Gov Climate & Energy Action - Solar Batteries
Incentives to boost rollout of household batteries in New South Wales | NSW Environment and Heritage
How does a Virtual Power Plant work? | solar.vic.gov.au
List of ACPs for businesses | IPART (nsw.gov.au)
2020 was a bumper year for solar in Australia.
Australia once again broke its own record for the highest number of photovoltaics installed in a year. In 2020, the installations skyrocketed by a whopping 30% from the previous year.
362,734 rooftop solar PV systems were installed as per the data from the Clean Energy Regulator and analysed by Australia’s national science agency, CSIRO. Of this, NSW contributed with over 109,000 installations. The solar uptake is high in suburbs like Marsden Park, Vineyard, Kellyville, Rouse Hill, Camden and Oakdale.
The pattern of installation in NSW is significantly different from Victoria. In Victoria, the installation is focused on five postcodes whereas the installations are spread evenly throughout Sydney. This data is gathered based on the installation from the small-scale renewable energy scheme and construction data.
Australians are committed to reducing their carbon footprint and using renewable energy sources to power their homes. COVID-19 has also enabled homeowners to spend more time on home improvement projects. Rooftop solar power is forecasted to generate 32 gigawatts by 2030 and would eclipse coal.
“Sustained low technology costs, increased work from home arrangements and a shift in household spending to home improvements during COVID-19 played a key role in the increase of rooftop solar PV systems,” Clean Energy Regulator executive general manager Mark Williamson said.
At the end of 2020, Australia had over 2.68 million households with solar which means one in 4 households is now enjoying the benefits of solar energy. So what’s stopping you from getting solar? The goal of NSW government is to have net zero emissions by 2050 and you can contribute to this target by installing a solar PV system.
Switch to clean energy with expert solar installers at Powerix. We are experts when it comes to solar PV systems across Sydney, meaning we can help homes and businesses like yours utilise the free and abundant power from the sun. Our experienced team of CEC accredited solar installers offer the custom design, supply and installation of top quality solar systems throughout Sydney. For more information, contact us on 0488 856 928 or complete our online enquiry form .
https://www.industry.gov.au/sites/default/files/2020-12/australias-emissions-projections-2020.pdf
https://www.smh.com.au/politics/federal/nsw-leads-australia-s-charge-to-record-rooftop-solar-take-up-20210513-p57rp9.html
https://energysaver.nsw.gov.au/households/solar-and-battery-power
https://www.csiro.au/en/news/news-releases/2021/australia-installs-record-breaking-number-of-rooftop-solar-panels
DC isolators are the leading cause of unsafe Photovoltaic solar systems in Australia. With isolators installed before 2014 being considered unsafe in 1-3% of inspections. So what can you do to protect your home and what is causing these problems?
A report released by Energy Safe Victoria outlines the most common causes for the failure of DC isolators. This report found two major causes for DC isolators being rendered unsafe upon inspection:
If you notice that your solar system is no longer working as well or at all or you notice anything of concern turn the system off if safe to do so. Once your system is off contact a Clean Energy Council-accredited electrician to inspect your system ensure that it is safe and make any repairs needed.
So how can you minimise or avoid these risks altogether? Well, there are a few simple steps to avoid these risks.
For more information on these inspections and the importance of regular maintenance of your solar systems click here.
If you are in need of a local Clean Energy Council-accredited solar technician in the Sydney area Powerix is your one-stop shop. Contact our team today!