Battery incentives are now available.
To take advantage of these incentives you will need to work with an accredited supplier.
You can receive an incentive by signing your battery up to a demand response contract, also known as a Virtual Power Plant (VPP). A VPP allows you to sell some of the excess stored energy in your battery when other people on the grid need it most.
Participating in a VPP can help you:
- provide a revenue stream for your battery, like the feed-in tariff available for solar
- speed up paying back the cost of your solar and battery system
- support the grid during peaks in demand and improve the energy security of NSW.
This incentive will help to reduce electricity demand during peak periods, and the risk of power outages in NSW.
Using more batteries across NSW will help make the grid more reliable and stable, while also reducing our reliance on fossil fuels during periods of peak demand. This will help reduce NSW’s emissions by 70% by 2035 and achieve net zero by 2050.
If you don’t already have a battery installed, you can access a discount to have one installed through an accredited supplier. Find out more here.
How you can make money by connecting to a Virtual Power Plant
Unlike a rebate, the incentive for joining a VPP is provided to an accredited supplier. The accredited supplier, also known as an Accredited Certificate Provider (ACP), will pass on the incentive to you. The accredited supplier is the business you choose to work with to connect your battery to a VPP.
The incentive is proportional to the usable capacity of the battery in kilowatt-hours (kWh). Larger batteries will receive a larger incentive.
If you’re eligible, incentives range between:
- $120 and $190 when you sign up a 6.5 kWh battery
- $250 to $400 when you sign up a 13.5 kWh battery
The incentive can be claimed twice, with at least 3 years in-between claims.
The incentive you receive depends on the terms and conditions of the specific VPP you sign up for. You may receive the incentive in instalments, as an upfront payment or discount off a new battery install, or as credit off your bill if your accredited supplier is also your electricity retailer.
For more information about the incentives read our FAQs.
How to access the incentive and sign up to a VPP
Important information:
We want to ensure you are always protected. Before you begin, it’s important to know that as a consumer, you have the right to hold certain expectations when buying a product or service from a business. These basic rights are called consumer guarantees and are protected under Australian Consumer Law. Visit the Australian Competition and Consumer Commission website to learn more.
Please also read our terms of service.
To be eligible for this scheme, your battery must have a minimum of 6 years remaining on the warranty and meet certain performance and warranty requirements.
An accredited supplier will be able to assess these requirements and confirm your eligibility.
If you’re interested in joining a VPP, contact an accredited supplier. They will check your eligibility and provide you with a contract outlining the conditions and incentive for your participation in their VPP. It’s a good idea to compare offerings from more than one supplier.
Refer to the section below to find a list of accredited suppliers that can help you access the incentive. Suppliers work independently and choose what services they offer.
Your chosen accredited supplier will provide you with the contract and scheme nomination form. You must sign the nomination form before you can receive any financial incentive. The supplier will also present you with a VPP contract to sign.
With these two documents and all other steps completed, you can now receive your incentive for participating in the VPP. If you have any issues or questions, contact your supplier for further assistance.
Accredited suppliers
Accredited suppliers work independently from the NSW Government, choosing which areas they operate in and what products and services they offer.
- Creditex: www.creditex.com.au
- EC Focus: www.energyconservation.com.au
- Ecovantage: www.ecovantage.com.au
- Electric Future Sustainability Services: www.electric-future.com
More suppliers will become accredited over the coming weeks and months. We recommend returning to this list for updates if none of the currently listed suppliers can help you.
Who to contact if you have questions or issues
If you have any questions about the incentive or have issues with your VPP sign-up, you should contact your accredited supplier directly.
If you have any issues when dealing with an accredited supplier, you should contact the scheme administrator, IPART.
FAQs
The incentive is not a direct rebate to customers. It’s provided as an upfront discount to the accredited supplier that operates the VPP and then it is passed onto the customer.
Accredited suppliers are also known as Accredited Certificate Providers (ACPs). These are businesses that have been accredited by the scheme administrator (IPART) to conduct specific activities under the Peak Demand Reduction Scheme (PDRS).
Virtual Power Plants (VPPs) are systems of interconnected batteries managed by a VPP operator. When needed, the VPP coordinates the release of energy stored in the batteries to the grid to address frequency and voltage imbalances, local disruptions or disturbances, and keep the network stable.
Participation in a Virtual Power Plant (VPP) means that customers agree to having their battery managed by a VPP operator. The battery owner and VPP operator will define the individual details, such as dispatch conditions, in the agreement.
The Peak Demand Reduction Scheme (PDRS) provides an incentive when proof that a battery has joined a VPP has been provided.
Customers can receive financial incentives for joining a Virtual Power Plant (VPP), speeding up the time it takes to pay back the cost of your solar and battery system. Joining a VPP can also provide a revenue stream for your battery, like the feed-in tariff available for solar.
Yes, you’ll need to have solar system and an eligible battery installed on the premises, and use an accredited supplier under the Peak Demand Reduction Scheme (PDRS) to sign you up to a Virtual Power Plant.
Batteries with storage between 2 and 28 kWh are eligible for this incentive. The incentive provided is proportional to the usable capacity of the battery.
No. The PDRS aims to reduce the load on the electricity grid. Off-grid batteries cannot help reduce the load.
You can access a discount if you choose to install a battery in your home or business with an existing solar system, or you can have the discount priced into a quote for a new combined solar system and battery installation. Find out more about this incentive here.
More battery information
Learn more about battery storage, including how to install and how to make the most of them.