From today, NSW businesses are able to cut the upfront cost of a new battery by around 20–40%, with the biggest discounts available when new solar is installed alongside it.
The battery incentives aren’t new, but with today’s launch, the NSW Government has now put some numbers around the savings, and confirmed they can be combined with federal support for commercial solar.
How Much Can NSW Businesses Save On Batteries?
Around 20–30% on a battery installed by itself, or 30–40% when it’s paired with enough new or additional solar, according to the NSW Government.
The incentives are part of NSW’s Peak Demand Reduction Scheme (PDRS), which rewards batteries for their potential to reduce demand on the grid during peak periods.
Rather than businesses receiving a government cheque, accredited providers issue certificates under the scheme and pass on their value as an upfront discount.
The actual amount will vary depending on the battery, installation, and provider. The government’s percentages are estimates rather than guaranteed rebates.
Still, the potential savings aren’t small. The government estimates a small business, such as a grocery store, could receive a discount of around $37,000, while a medium-sized business, such as a dairy farm, could save around $355,000.
Eligible batteries range from more than 20 kWh for smaller businesses all the way up to 30 MWh for large commercial and industrial operations. However, incentives for the largest installations are capped at the first 10 MWh.
Add Solar And The Battery Discount Gets Bigger
Businesses don’t need to install solar to qualify for the battery incentive. But NSW will offer a larger incentive if enough new or additional solar is installed alongside it.
To qualify for the higher incentive, the solar must be installed within 90 days of the battery installation. Businesses also need to install at least 0.25 kW of new solar capacity for every 1 kWh of usable battery capacity. So a business installing a 100 kWh battery would need at least 25 kW of new or additional solar.
The timing is particularly interesting because the Federal Government is also planning to dramatically expand support for commercial rooftop solar.
As SolarQuotes reported earlier this month, the government plans to expand the Small-scale Renewable Energy Scheme (SRES) from its current 100 kW solar system limit to systems up to 1 MW.
The change is intended to begin on October 1. It is expected to cut the upfront cost of eligible commercial solar installations by around 20%, although the necessary regulations still need to be put in place.
NSW has explicitly confirmed its new battery incentive can be combined with federal support for commercial rooftop solar.
That means a NSW business installing both could potentially receive federal support for the solar, plus a larger state battery discount because new solar is being installed alongside the battery.
For eligible smaller batteries, there may be another layer of support. Some business installations can also qualify for the Federal Government’s Cheaper Home Batteries Program as well as the NSW incentive, provided they meet the requirements of both schemes. Exactly which incentives apply will therefore depend on the system’s size and design.
NSW businesses may be able to combine state and federal support for solar and batteries. *Qualifying new solar must be installed no more than 90 days before or after the battery. **Federal battery support only applies to systems meeting the program’s eligibility requirements. Actual discounts vary, and the federal commercial solar expansion is proposed and subject to regulations.
What About Apartment Buildings?
Businesses aren’t the only ones included in today’s expansion. Apartment buildings with at least four dwellings will also become eligible for NSW support for shared batteries of 20-200 kWh.
Earlier this year, SolarQuotes looked at apartment buildings using the NSW and Federal Government’s Solar for Apartment Residents (SoAR) program to install shared rooftop solar.
NSW says apartment buildings that previously received SoAR funding can still qualify for the new battery incentive. But if they want the higher solar-linked battery incentive, they’ll need to add qualifying new solar.
Don’t Assume It’s 40% Off
Despite the headline figures, businesses shouldn’t assume they’ll automatically get 40% off whatever battery an installer quotes. The incentive varies between installations and providers, and the combination of battery size, solar capacity and state and federal support can get complicated.
But for NSW businesses already considering commercial solar, batteries may now deserve another look. From today, the state will subsidise eligible batteries and provide more support when they’re installed with new solar, just as the Federal Government prepares to expand its commercial solar support.
If you’re considering solar and batteries for your business, start with our Commercial Solar 101 Guide, then get multiple quotes before signing anything.
About Kim Wainwright
RSS - Posts
Speak Your Mind