NSW Battery Rebate: How To Triumph Despite The Confusion

So you’ve heard about NSW offering an incentive between $1600 and $2400 to install a home battery. It’s great news but if you’re confused about exactly how this battery rebate works, don’t worry, so is the solar industry. Installer angst is palpable; but read on and I’ll explain there’s opportunities to make this work for everyone.

What’s Good About It?

The aim is to lower the cost of entry for people to buy solar batteries. Great.

For years, the whole energy industry has known we need great gobs storage to smooth out the ebb and overwhelming flow of cheap renewable electricity. Large scale deep storage on seasonal timelines is difficult, but batteries are well suited for shifting sunshine from one day to the next.

Having them behind the meter is energy efficient and will lower costs for augmenting the grid & building new generators. Everyone wins when you leverage those with the money to buy a battery.

Are These Batteries Lithium Or Unobtainium?

To qualify, the battery must:

• endure an ambient temperature range of -10°C to 50°C,
• offer a 10-year warranty, provide a throughput of 3.65 MWh per kWh,
• and retain at least 70% capacity.

Those are staunch numbers, however in a quick search I couldn’t find a battery that ticked all the boxes.

It appears that the NSW Government has failed to consult the industry they’re supposed to be helping.

At least they’re trying to ensure the scheme isn’t flooded with poor quality batteries. Unfortunately, we may find that the cheap suppliers are the ones willing to fudge their numbers to get on the program, while more conservatively rated options remain ineligible.

Installers have raised a working group and are hoping this scheme will be modified but that’s no sure bet.

Home Building Compensation Fund Insurance Is Mandatory

Building work over $20,000 means the contractor must have Home Building Compensation Fund (HBCF) insurance. This scheme compensates you if your installer goes bust before completing the job. This requirement will both discourage dodgy operators and cover their disappearing acts.

If you want to check whether a NSW installer has HBCF insurance, have a look at their licence on the Service NSW site:

How To Take Advantage Of The NSW Battery Rebate Now?

Despite some electricians hibernating in winter when the roof is slippery & interest is low, this scheme may damage NSW solar businesses in the short term, while everyone waits for the scheme to start.

But homeowners don’t need to sit on their hands. There’s plenty that they can do between now and November.

1) Move Early And Beat The Rush

If you need a 3 phase upgrade, an EV provision or perhaps your switchboard wants smartening up, 5 months offers time to finance, design and specify the system properly.

‘Battery Ready’ isn’t just marketing. These days, great value hybrid options are available, with inverters offering software upgrades paid once you decide on a battery.

2) Measure Up Your Consumption

Whether you’re starting fresh, augmenting or replacing your old solar, knowledge is power. Installing a consumption meter like CatchControl will give you real data, so you don’t have to guess what size battery is best for your place.¹

As an example:

• start with some quotes to find the right installer
• tidy up the switchboard
• add a Catch Control with relay to power your hot water service

This initial investment not only provides information to help you identify efficiency measures and the right retail plan, but it also becomes an integral part of your new solar and battery once the system is decided on and installed.

3) Add New Solar Now

Once you have a decent-sized solar system, there will be a lot of sunshine to capture between now and November. Remember that no one ever complains about having too much power; “decent” means as much as will fit on the roof. You want surplus energy to charge a battery.

With the right design, the battery install in November could be as simple as your electrician wheeling in, plonking down, plugging in & claiming your battery rebate.

What’s Bad About The NSW Battery Rebate?

I must do some ranting here for context.

The solar industry has been historically volatile. Established operators will tell you it’s called the solar coaster for a reason. In the early days, margins were high, wholesalers were few, and everything involved waiting—whether it was for stock or for customer approval for a federal government grant.

I vividly recall a staff meeting when the minister unexpectedly ended the $8,000 Solar Homes and Communities Program rebate three weeks early. We dropped everything and headed for our nearest prospects, getting papers signed and mailed by 5:00 PM. While we had work booked, the replacement solar incentive was yet to pass parliament.

Running a capital-intensive business is tough when you’re at the mercy of exchange rates and power prices. It’s even harder when there seems to be no clear plan from the top.

Solar Installers Are Grumpy

While farmers are generally unhappy with the weather, solar installers are generally unhappy with government. And they have every right to be. Unlike rain, it shouldn’t take divine intervention to learn from years of industry input and climate wars.

Right now NSW looks like an episode of Utopia. They have an announcable; which apparently starts a 25 year program. Yet the authorities overseeing the scheme haven’t even organised their compliance structure. Worse still, the available information is so arcane, full of acronyms and impenetrable jargon, it does my head in trying to read it, even with 15 years solar expertise.

I defy anyone to read all these Acronyms and tell me they feel smarter.

What’s Really Bad About It?

November is 5 months away.

Whatever interest there was in batteries has been iced for the duration. Even people who’ve paid deposits and booked installs will now be asking for delays when really expensive stock is already on hand.

Worse still, November is already solar season. The used sportzball stars will be pushing the fact that solar rebates (routinely) drop in the new year while everyone else wants things finished before Xmess. The timing for this new wave of demand is nonsensical.

And early adopters are excluded! An existing battery must not be installed at the same National Metering Identifier(s) so those who have the will or wherewithal to invest more, can’t.

One might ask how difficult it is to abolish a supply in NSW and connect a new NMI.

Generating Certificates May Generate Distrust

The scheme involves installing approved equipment, under the guidance of approved companies, who create approved certificates, which are then bought by approved participants. Of course these certificates are tradeable, so spare a thought for the raft of brokers trying to make an honest living.

In Our Next Article

We’ll explore the other component announced in this incentive scheme, a payment designed to put your battery on a virtual power plant, one that could work well with the recently announced and very controversial Ausgrid Two Way Tariff.

If you’d like more detail without the jargon, Billy Davis of Tru Blu Solar Co has a simplified explainer.  He’s knocked the NSW Government’s info into a cocked hat.