{"id":91771,"date":"2025-05-19T13:48:27","date_gmt":"2025-05-19T04:18:27","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=91771"},"modified":"2025-06-30T12:10:59","modified_gmt":"2025-06-30T02:40:59","slug":"fixing-battery-rebates-nsw","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/fixing-battery-rebates-nsw\/","title":{"rendered":"Bound in Red Tape: NSW Tries to Fix Its Battery Rebate"},"content":{"rendered":"<p><img decoding=\"async\" class=\"wp-image-92097 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/duck-curve-header.jpg\" alt=\"\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/duck-curve-header.jpg 1200w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/duck-curve-header-300x158.jpg 300w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/duck-curve-header-1024x538.jpg 1024w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/duck-curve-header-768x403.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><b><\/b>The NSW Government has been seeking advice on improving the Peak Demand Reduction Scheme, as it works to harmonise the state battery incentive in anticipation of a federal rebate. Here&#8217;s how the bureaucrats are working to fix a myriad of problems, and what installers want to see changed.<\/p>\n<p><!--more--><\/p>\n<p>For homeowners, NSW&#8217;s <a href=\"https:\/\/www.solarquotes.com.au\/battery-storage\/nsw-rebate\/\">Peak Demand Reduction Scheme<\/a> (PDRS) promises point-of-sale discounts for installing batteries\u2014a decent win for your wallet and the grid.<\/p>\n<p>However, to secure the rebate dollars, many solar installers are wrangling with red tape, fine print, third-party agents and other certificate trading ticket clippers. It all means payment delays behind the scenes.<\/p>\n<p>Some say the rules help weed out dodgy operators. Others reckon they\u2019re strangling good businesses and making battery upgrades harder than they should be.<\/p>\n<p>It\u2019s got to the point where some installers simply aren\u2019t interested in claiming the cash because the compliance costs eat up the available funds.<\/p>\n<p>This is on top of concerns that the NSW scheme <a href=\"https:\/\/www.solarquotes.com.au\/blog\/double-dipping-labors-battery-incentive-big-savings-big-problems\/\">isn&#8217;t currently stackable<\/a> with the incoming federal Cheaper Home Batteries Program rebate, even though the feds have promised it will be.<\/p>\n<p>Let\u2019s unpack some concerns and how the NSW government is responding.<\/p>\n<h2><b>&#8216;Battery Ready&#8217; Inverters And The 10-Year Warranty Rule<\/b><\/h2>\n<p>One common question is: Can I add a battery to my existing hybrid inverter under the rebate scheme?<\/p>\n<p>The short answer is yes \u2014 as long as the inverter <em>originally<\/em> came with a 10-year warranty.<\/p>\n<p>Why? The idea is to cut out cheaper inverters that only ever offered 5 or 7-year coverage \u2014 a rough indicator of build quality.<\/p>\n<p>Now, just because a product had a long warranty on paper doesn\u2019t mean the company itself will last. Government officials acknowledge the problem, saying they\u2019re looking for better ways to measure real-world quality.<\/p>\n<p>When even a concern as big as <a href=\"https:\/\/www.solarquotes.com.au\/panels\/lg-review.html\">LG Solar can simply wind up panel production<\/a>, paper promises only go so far.<\/p>\n<h2><b>Is a Long Warranty Actually Worth Anything?<\/b><\/h2>\n<p>The government wants value for the taxpayer dollar, proper 10-year assets, not junk.<\/p>\n<p>However, without a strong history or accelerated energy performance testing, they&#8217;re relying on warranties and other documents as proxies for quality.<\/p>\n<p>It\u2019s not ideal but with home batteries being a fairly new field of technology, and they\u2019re open to suggestions about how to write rules to mandate better-quality hardware.<\/p>\n<p>The first announcement of the scheme was so stringent even market leader Tesla Power &amp; Sungrow were ineligible, so there\u2019s already a precedent for making adjustments.<\/p>\n<p>The trick is finding a condition or warrantable specification that can both encourage better quality and be possible to write into law.<\/p>\n<div id=\"attachment_92103\" style=\"width: 502px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-92103\" class=\"wp-image-92103 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/q-cell-battery-e1747627167616.jpg\" alt=\"Q-cells solar hybrid battery inverter\" width=\"492\" height=\"432\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/q-cell-battery-e1747627167616.jpg 492w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/q-cell-battery-e1747627167616-300x263.jpg 300w\" sizes=\"(max-width: 492px) 100vw, 492px\" \/><p id=\"caption-attachment-92103\" class=\"wp-caption-text\">Q-cells is <a href=\"https:\/\/www.solarquotes.com.au\/blog\/qcells-end-australian-operations\/\">another example<\/a> of a company to leave Australia&#8217;s solar scene.<\/p><\/div>\n<p>Price might be the best indication of quality, but you can\u2019t set a minimum price in legislation.<\/p>\n<h2><b>What Installers Really Think: A Poll from the Trenches<\/b><\/h2>\n<p>SolarQuotes sought advice from one of the country\u2019s most active solar installer forums, and 69 quality-focused industry professionals gave us feedback on how the NSW rebate system is running. It wasn&#8217;t a scientific poll, but the vibe was clear.<\/p>\n<ul>\n<li aria-level=\"1\">44% want inspections before rebates are paid out \u2014 to stop cowboys cutting corners.<\/li>\n<li aria-level=\"1\">8% support inspections plus a demerit point system.<\/li>\n<li aria-level=\"1\">21% say manufacturers must have proper Australian warehouses and locally staffed support \u2014 not just a serviced office and random supply chain.<\/li>\n<li aria-level=\"1\">8% think official warranty failure reporting is worth trying.<\/li>\n<li aria-level=\"1\">5% like the idea of an insurance pool to cover warranties and recycling.<\/li>\n<\/ul>\n<p>While installers are usually allergic to red tape,<b> more than half of our straw poll are calling for technical inspections of some sort<\/b>, saying it is the only way to protect decent operators from being undercut.<\/p>\n<h2><b>Comments from the Field<\/b><\/h2>\n<blockquote><p><strong>Nick (paraphased):<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>\u201cIt\u2019s ridiculous the compliance overreach and audit process before creating certificates so retailers can get paid. It\u2019s choking cash flow and small business.<\/p>\n<p>(Installers are framing the conversation with customers like this:<\/p>\n<p><i>You won\u2019t have control of your investment under the VPP<\/i><sup class='endnote'><a href='https:\/\/www.solarquotes.com.au\/blog\/fixing-battery-rebates-nsw\/#en-91771-1' id='enref-91771-1' onclick='return hhEndnotes_show(91771)'>1<\/a><\/sup><i> so don\u2019t take the rebate<\/i>.<\/p>\n<p>Makes it easier for the installer and customer when they don\u2019t have to worry about it.)<\/p>\n<p>\u201cI don\u2019t see why they can\u2019t use a stat dec like SRES&#8230; and then audit as needed when they have resources.\u201d<\/p>\n<p>\u201cI\u2019ve just heard that the IPART auditors are delaying payments, waiting for manufacturers to change wording on warranty documents. The compliance overreach with the program is ridiculous. I get they\u2019re trying to stop stinks, but it won\u2019t.\u201d<\/p>\n<p>\u201cThe other sticking point is DNSP performance. The networks must be forced to update the DER register <i>in a timely fashion<\/i> or have these requirements removed.\u201d<\/p>\n<p>(third party compliance detail must be correct but installers have no power to make the poles and wires authority to do their bit)<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Mike:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>\u201cPlease tell them to cap the number of PRCs instead of the max battery size that qualifies. Crazy to give nothing for a 28 kWh or greater!\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Mick:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>\u201cThe PDRS cap should change to be a cap on payment, not a cap on kWh. It would open up eligibility on so many jobs even if Labor don\u2019t get in and this federal scheme never happens.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Greig:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>\u201c100% the cap needs to go.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Louis:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>\u201cThey have got to speed up approvals and payments, otherwise there will be no companies left to install the batteries in the first place.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Isaac:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>\u201cBeing able to claim PDRS only once is a bit weird. So is the 28 kWh cap.\u201d<\/p>\n<p>\u201cCompulsory inspections is not ideal.. it may bring up the standard of work but for regional NSW&#8230; such a hassle.\u201d<\/p>\n<p>\u201cRandom audits are good. They should do their best to look at a number of installs from each installation company.. especially the higher volume crews.\u201d<\/p>\n<p>\u201cIf there&#8217;s non-compliances found, then yeah delve deeper into their previous installs\u2026 So yeah sure suspensions make sense comparatively.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Brent:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>\u201cMandate UL9540a safety battery certification.\u201d<\/p><\/blockquote>\n<h2><b>Cash Flow Crunch<\/b><\/h2>\n<p>Multiple installers said cash flow is being strangled by audit delays and compliance overreach.<\/p>\n<p>There are justifiable gripes: like rebates held up until some fine detail, like a manufacturer warranty document wording, is fixed. That leaves small businesses in limbo while OEMs flounder to update PDFs to satisfy the rules.<\/p>\n<p>Others want a system like the one used for solar rebates under the <b>Small-scale Renewable Energy Scheme (SRES)<\/b>. Just sign a statutory declaration, get paid, and accept that random audits may follow.<\/p>\n<p>The government\u2019s response? They know the current process needs work, and they&#8217;re looking at ways to speed up payment and streamline how audits are triggered.<\/p>\n<h2>Audit Quality Must Be Improved<\/h2>\n<p>It&#8217;s been noted that NSW Government audits have been undertaken by qualified people <strong>who aren&#8217;t experienced in solar.<\/strong><\/p>\n<p>This has installers ticked off because the audits have produced non-existent problems that hold up payments.<\/p>\n<p>Some PDR certificate traders have worn the risk and paid installers, but others are refusing until the audit process is completed and everything is technically ticked off.<\/p>\n<h2><b>28 kWh Cutoff Is An Artificial Ceiling<\/b><\/h2>\n<p>The current cap for rebate eligibility is 28 kWh of battery capacity, which has many installers scratching their heads.<\/p>\n<p>What about homes (or small businesses) that want more? Especially seeing as the mooted federal CHB scheme will subsidise 50kWh and doesn&#8217;t cut out until 100kWh.<\/p>\n<p>Officials say the cap came from modelling used in ACT\u2019s NextGen trial, which NSW tweaked to line up with South Australia. But the key goal of the PDRS is just that \u2014 <b>peak demand reduction<\/b>.<\/p>\n<p>Both the federal incentive and the PDRS are one-time offers; there&#8217;s no second round available for expansions.<\/p>\n<p>NSW says they\u2019re focused on first-time battery installs because those offer the biggest bang for the grid. Additional or oversized batteries? Not so much.<\/p>\n<p>However the industry is unanimous, this cap should be on payments, not kilowatt hours.<\/p>\n<div id=\"attachment_92098\" style=\"width: 678px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-92098\" class=\"wp-image-92098 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/sungrow-battery-not-expandable.jpg\" alt=\"sungrow inverter and battery\" width=\"668\" height=\"752\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/sungrow-battery-not-expandable.jpg 668w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/sungrow-battery-not-expandable-266x300.jpg 266w\" sizes=\"(max-width: 668px) 100vw, 668px\" \/><p id=\"caption-attachment-92098\" class=\"wp-caption-text\">This 9kWh battery can&#8217;t be expanded without moving the inverter. Considering the tap, gravel surface and the air conditioner, I would move all this equipment anyway.<\/p><\/div>\n<h2><b>What About UL9540a Certification?<\/b><\/h2>\n<p>The government says this is \u201con the radar\u201d, but they\u2019re cautious about setting requirements that could favour one supplier over another unless there\u2019s a clear safety case.<\/p>\n<p>It\u2019s been pointed out that the international laboratories doing this certification mightn&#8217;t get new products tested in a timely manner.<\/p>\n<h2><b>The $20,000 Question<\/b><\/h2>\n<p><a href=\"https:\/\/www.service.nsw.gov.au\/transaction\/apply-for-home-building-compensation-cover\"><b>Home Building Compensation (HBC) insurance<\/b><\/a> (formerly known as home warranty insurance) is mandatory if a job goes over $20,000.<\/p>\n<p>That\u2019s led some installers to quote smaller battery sizes just to avoid the extra paperwork and expense.<\/p>\n<p>The government says installers must comply with all relevant legislation. Though they don\u2019t explicitly require proof of HBC insurance under the scheme, the climate and energy department can\u2019t grant exemptions from legislation it doesn&#8217;t control.<\/p>\n<p><span style=\"text-align: center;\">Talk about unintended consequences:<\/span><\/p>\n<p style=\"text-align: center;\">Mandating a smoke detector to go with a new PDRS home battery might feed irrational fears about lithium battery fires. However the real cost comes when <em>all<\/em> the smoke detectors on the premises need updating; <em>because they must be interlinked<\/em> under the current building code.<\/p>\n<div id=\"attachment_92100\" style=\"width: 798px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-92100\" class=\"wp-image-92100 size-full\" src=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/sigen-battery.jpg\" alt=\"sigenergy battery\" width=\"788\" height=\"525\" srcset=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/sigen-battery.jpg 788w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/sigen-battery-300x200.jpg 300w, https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/sigen-battery-768x512.jpg 768w\" sizes=\"(max-width: 788px) 100vw, 788px\" \/><p id=\"caption-attachment-92100\" class=\"wp-caption-text\">Sigenergy have included an internal fire surpression measure.<\/p><\/div>\n<h2><b>Bottom Line: Progress, But Still Clunky<\/b><\/h2>\n<p>The NSW government deserves credit. They\u2019ve taken installer feedback seriously, admitted when things aren\u2019t working, and committed to fixing what they can.<\/p>\n<p>But the scheme is still clunky. And if installers walk away because it\u2019s too hard to get paid, the rebate won\u2019t help anyone.<\/p>\n<p>The homeowners, who are being leveraged for private investment, will miss out, and the broader public will still be left with a grid that needs more costly upgrades sooner.<\/p>\n<p>If you\u2019re a customer, talk to your installer. Ask how they handle rebates, and how long payment takes. A good one will be honest about the system&#8217;s flaws \u2014 and still get you a solid battery at a fair price.<\/p>\n<p>The rebate might come with strings attached. But with the right installer, it can still be worth it.<\/p>\n<p>For more on what the federal government rebate will do to take the cost off a battery wherever you are in the country, our <a href=\"https:\/\/www.solarquotes.com.au\/battery-storage\/calculator\/\">Battery Calculator<\/a> and <a href=\"https:\/\/www.solarquotes.com.au\/solar-calculator\/\">Solar &amp; Battery Calculator<\/a> now factor in the federal discount.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The NSW Government has been seeking advice on improving the Peak Demand Reduction Scheme, as it works to harmonise the state battery incentive in anticipation of a federal rebate. Here&#8217;s how the bureaucrats are working to fix a myriad of problems, and what installers want to see changed.<\/p>\n","protected":false},"author":28,"featured_media":92097,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[551],"tags":[],"class_list":["post-91771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-battery-storage","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Bound in Red Tape: NSW Tries to Fix Its Battery Rebate<\/title>\n<meta name=\"description\" content=\"The federal battery rebate is on the horizon, so NSW is cleaning up its act before installers and customers get lost in compliance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solarquotes.com.au\/blog\/fixing-battery-rebates-nsw\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bound in Red Tape: NSW Tries to Fix Its Battery Rebate\" \/>\n<meta property=\"og:description\" content=\"The federal battery rebate is on the horizon, so NSW is cleaning up its act before installers and customers get lost in compliance.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.solarquotes.com.au\/blog\/fixing-battery-rebates-nsw\/\" \/>\n<meta property=\"og:site_name\" content=\"SolarQuotes Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/SolarQuotes\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-19T04:18:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-30T02:40:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/05\/duck-curve-header.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Anthony Bennett\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@solar_quotes\" \/>\n<meta name=\"twitter:site\" content=\"@solar_quotes\" \/>\n<script type=\"application\/ld+json\" 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