{"id":777126,"date":"2026-07-03T20:14:17","date_gmt":"2026-07-03T20:14:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/777126\/"},"modified":"2026-07-03T20:14:17","modified_gmt":"2026-07-03T20:14:17","slug":"solar-battery-rebate-expanded-to-apartments-and-big-energy-users-for-up-to-30-mwh-in-game-changing-move","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/777126\/","title":{"rendered":"Solar battery rebate expanded to apartments and big energy users for up to 30 MWh in game-changing move"},"content":{"rendered":"

\"\"<\/a><\/p>\n

New South Wales has quietly rebooted the state solar battery rebate, and expanded the scheme to offer significant discounts on storage for apartments, small to medium business, and on batteries sized up to 30 megawatt-hours for the state\u2019s commercial and industrial sector.<\/p>\n

The amendments to the state Labor government\u2019s Peak Demand Reduction Scheme (PDRS) were signed off by energy minister Penny Sharpe late last month and have been published on the NSW Climate and Energy Action website, here<\/a>.<\/p>\n

And they have the potential to change the game, again, on behind-the-meter solar and storage and its contribution to the grid in a state that remains heavily dependent on coal power. <\/p>\n

The changes essentially reactivate the PDRS battery installation discount that was snoozed last year following the launch of federal Labor\u2019s Cheaper Home Batteries (CHB) scheme. <\/p>\n

The decision to snooze the scheme was driven by the desire to avoid people \u201cdouble dipping\u201d into both rebates. Instead, the PDRS offered a further discount to households that signed their battery up to a virtual power plant (VPP).<\/p>\n

Under the latest amendments \u2013 which are yet to be formally announced by the state government, and which will not come into play until September 1 \u2013\u00a0not much changes for households, who will still be restricted to VPP benefits only if they are also accessing the federal rebate.<\/p>\n

For small businesses, however, the state\u2019s certificate-based rebate is partially reactivated \u2013 including with CHB stacking for all government facilities and for minister-approved Exempt Energy Programs (EEPs). <\/p>\n

The headline changes, meanwhile, are the addition of rebate stream for apartment buildings, which means buildings with more than four dwellings and no existing battery can apply for discounts on storage of between 20 kWh and 200 kWh, with certificates limited to 5 kWh per dwelling. Stacking with the CHB rebate is allowed up to 100 kWh.<\/p>\n

For small to medium business (SME) \u2013\u00a0no residential buildings or data centres allowed \u2013 rebates apply to batteries sized between 20 kWh to 200 kWh usable capacity (capped at a four-hour battery), with CHB stacking up to 100 kWh and the offer of a higher incentive if the battery is installed alongside a new solar system.<\/p>\n

For the commercial and industrial (C&I) sector, rebates can be sought for systems sized from 200 kWh up to a whopping 30 MWh of usable capacity, with a 10 MWh cap on certificates.<\/p>\n

Much of the detail of the scheme remains to be clarified and confirmed by the government in due course \u2013 the above interpretation of the fairly complex settings and rules of the amended PDRS may contain inaccuracies and should be cross-checked \u2013 details will be updated as needed.<\/p>\n

But Renew Economy understands that the feedback from the industry so far is largely very positive, particularly from the C&I solar sector, which has been patiently waiting for incentives to drive battery and solar uptake by big business and industrial customers.<\/p>\n

Smart Commercial Energy CEO Huon Hoogesteger says the early calculations show the PDRS changes could significantly reduce the pay-back period for businesses that have been wanting to install solar batteries but have held off due to cost.<\/p>\n

\u201cBreak-evens for batteries are naturally sitting around seven years at the moment, [with the PDRS] that will drop down to under four years, which is significant.\u201d<\/p>\n

\u201c[What it also] means is much larger battery size systems\u2026 will come into the market, which are easier to manage for the VPP operators and the electricity retailers.<\/p>\n

\u201cAnother great thing about this program is that it\u2019s going to encourage additional solar installation,\u201d Hoogesteger adds, noting that the C&I sector in Australia remains vastly underserved, compared to the opportunity that is available.<\/p>\n

\u201c[And due to the settings], you know the biggest rebates will be gained by not just adding a battery, but by adding solar as well.<\/p>\n

Even the two-month delay before the scheme kicks in, in September, has been welcomed by some as a useful block of time to consult with customers and start ordering kit.<\/p>\n

\u201cWe\u2019ve got a little bit of time to warm up and stretch before what we hope is a very exciting time in the industry,\u201d says Hoogesteger.<\/p>\n

The biggest concerns, ahead of the rebate changes, are the availability of properly qualified electricians and \u2013 as is almost always the case when subsidies are announced \u2013 the establishment of rules and regulations that will keep out dodgy operators and \u201ccowboys.\u201d<\/p>\n

\u201cGetting good quality installations is going to be the biggest [challenge], \u2026 [it] invites a bunch of cowboys, obviously, every time there\u2019s government rebate, and we\u2019re afraid of what that means for the market,\u201d says Hoogesteger. <\/p>\n

\u201cThe good thing about commercial solar is that it requires a [development application],\u201d he adds. \u201cIt requires a certain level of engineering, and so I guess some of those cowboys who exist in the Cheaper Home Batteries scheme won\u2019t transfer across.\u201d<\/p>\n

Ultimately, the emergence of a rebate scheme that focuses on bigger and more complex battery storage applications is considered well overdue. <\/p>\n

\u201cUnfortunately, Cheaper Home Batteries was really only for homes,\u201d Hoogesteger tells Renew Economy. \u201cIt really wasn\u2019t making use of that commercial opportunity.<\/p>\n

\u201cI\u2019ve been part of about five different submissions, and \u2026 conversations with the Department of Water, Energy, and Climate Change in New South Wales, and also federally \u2013 everyone has been asking the same question:\u2026 How do we solve the missing middle?\u201d<\/p>\n

Hoogesteger says it is also encouraging to see that the NSW rebate is \u201cbasically a market mechanism\u201d which has a built-in floor price for certificates, that should act to keep the scheme in check.<\/p>\n

\u201cIt\u2019s good to have a market that reflects the amount of installations going in, because it kind of creates a natural handbrake, rather than what we saw with the Cheaper Home Batteries \u2026 [which] got oversubscribed and even became too buoyant, too exciting.\u201d<\/p>\n

If you would like to join more than 29,000 others and get the latest clean energy news delivered straight to your inbox, for free, please\u00a0click here to subscribe to our free daily newsletter<\/a>.<\/p>\n

If you wish to support independent media, and accurate information, please consider making a one off donation or becoming a regular supporter of Renew Economy. Please click here. Your support is invaluable.<\/a><\/p>\n

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