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Starting November 1, 2024, the NSW government is launching new battery incentives under the Peak Demand Reduction Scheme (PDRS). These incentives aim to make energy storage more accessible, reduce peak electricity demand, and reward homeowners and businesses for playing a part in stabilising the grid.
For those who are interested in the nitty gritty, and don’t mind the odd acronym, here is what you need to know about the PDRS.
The PDRS creates incentives for people to adopt energy-saving measures, including solar battery storage. It does this through the creation of “Certificates” that reflect the ability to load shift during peak times (i.e. use a solar battery/solar panels for your energy needs when the grid is experiencing the most demand.). One Peak Demand Reduction Certificate (PRC) is generated for every 0.1kW of reduced demand from traditional grid energy sources such as coal or natural gas generators.
These PRCs can be traded in the carbon offset market by Virtual Power Plant operators such as ShineHub, in the process creating financial rewards for customers who install eligible batteries or connect their battery to the VPP.
Accredited Certificate Providers (ACPs), such as MAC Trade Services, manage the creation and trade of PRCs on behalf of battery installers.
A useful way to think of this is that Virtual Power Plant operators share revenue they make from actively trading energy discharged from your battery to help AEMO (Australian Energy Market Operator).
In addition to the financial benefits to you, participating in FCAS (Frequency Control Ancillary Services) provides essential support to the grid, and supports the transition to a renewable energy powered National Energy Market (NEM).
Having said all that, the best thing is that when you are part of a VPP such as the ShineHub VPP you don’t need to do anything, this all happens automatically – and you will be paid, directly into your bank account, for any energy discharged from your battery during a VPP event.
To qualify for the incentive, certain conditions must be met. Here’s a checklist to see if you’re eligible:
VPP compatibility: The battery must be capable of connecting to a Virtual Power Plant. All of ShineHub’s customers can join the ShineHub VPP. You can read about all the great benefits of joining here.
Warranty: The battery should have at least 6 years of remaining warranty. All of our batteries and inverters come with a 10-year warranty that is rock solid and is not affected (reduced) by VPP participation. In addition, the incentive is not a one-time offer. You can claim the VPP incentive twice over the battery’s lifespan, as long as there are at least 3 years between applications and the battery has at least 6 years remaining on its warranty. So if you claim the incentive from the initial date of installation, you can claim the incentive directly from MAC Trade Services, in three years time provided you meet all other requirements..
Eligible customers can receive anywhere from $270 to $3,700 off the upfront battery cost and $40 to $570 as cashback for joining a VPP. Keep in mind that incentive amounts are subject to change based on PRC trading prices.
Please note that PRC trading prices are subject to change. What this means is that the incentive amount is not set in stone, but behaves like a stock on the stock market and supply and demand economic principles apply. This means that your incentive amount could go down in future as more and more people take advantage of the incentive, so it is recommended to get in early to secure the best possible incentive priced into your system.
MAC Trade Services has a handy calculator on their website that shows you what you could save. Please note that the battery brands listed and the savings amounts are for illustration purposes and incentive amounts can go up as well as down.
Nothing!
The NSW battery incentive doesn’t come as a direct payment to you. Instead, we apply it as a discount on your system and installation cost, similar to how the Small-scale Technology Certificates (STCs) work for solar systems.
ShineHub, as an approved supplier, will apply the incentive, making the process hassle-free for you. We simply include the incentive in your quoted system cost, and claim the incentive down the track. That way you get the benefit of the incentive without any of the hassles.
Claiming the NSW battery incentive is a straightforward process, and ShineHub makes it even easier by managing the key steps for you.
ShineHub will provide a detailed quote that includes the PRC incentive amount.
Your installer will take photos before and after the installation to document the project.
Both you and your installer will need to sign off on the installation on the day.
ShineHub will use the MAC Trade Services app to upload your project details to the NSW Battery incentive portal.
MAC Trade Services will review the evidence, and once approved, your installer can apply the incentive. The great news is that we are already applying this in our pricing.
Get a quote today and chat to one of our solar consultants who can help you arrive at a solution that suits you.
Approved suppliers are businesses accredited by the Independent Pricing and Regulatory Tribunal (IPART) to operate under the PDRS. ShineHub is one such approved supplier, ensuring that your battery installation is compliant with all scheme requirements. Our comprehensive design, engineering and installation process leaves nothing to chance. You can read more about our process here.
The incentive will be available from November 1, 2024, and ShineHub has already prepared packages and pricing that include the incentive, so you can take advantage of this from day one. There is no need to wait until November 1 to get your quote, as long as the installation happens after November 1 you’re all good to go.
Virtual Power Plants (VPPs) are networks of interconnected batteries that work together to support the grid. By joining a VPP, such as the ShineHub VPP, your battery can store energy and release it back to the grid during high-demand periods, helping to stabilize the network and prevent blackouts.
A VPP operator, like ShineHub, will manage your battery’s energy storage and release (we have some pretty cool software that does this). You’ll still have full control over your power usage, and the VPP operator will only use the energy as agreed in your contract. Participating in a VPP can provide you with additional financial incentives and help reduce your energy bills. Check out why we provide a further $2000 discount on top of the NSW government incentive and VPP incentive when you get a solar battery and join the ShineHub VPP.
Benefits of Joining the ShineHub VPP:
VPP participation can shorten the payback period for your solar and battery system by providing additional income streams. With ShineHub, not only do we give you an additional incentive for joining our VPP of $2000, you can also earn up to $300 per year in passive income from your battery. Over a 10-year period that is up to another $3000 in savings.
You’ll be helping to keep the energy grid stable, which is particularly important during peak demand times.
For the full lowdown on the many benefits of the ShineHub VPP and why it is different from other VPPs on the market read our handy blog here.
Request a call back by submitting for a quote and one of our consultants will be in touch to answer any questions you may have.
“We actually get credit on our power bill because we export power back to the grid!”
Yes, as long as the battery is on the approved product list and meets all PDRS requirements. ShineHub’s batteries qualify – to read about our powerful Hinen Battery offering click here and find out why it meets all the requirements and then some.
Armed with all the information you need about the NSW solar battery incentive and VPP incentive, we recommend getting in touch with us. Simply submit a quote request on our website, and one of our consultants will be in touch to answer any questions you may have, and help you design the perfect solar system for your needs.
Choosing the right solar company is hard. To help you understand why ShineHub should be on your shortlist, we have created a handy-all-in-one blog that should put your mind at ease and help you feel confident in choosing us for your solar project.
^Must sign up to the ShineHub VPP. Assumes Virtual Power Plant participation. ShineHub VPP terms and conditions apply.
*Savings vary according to individual circumstances. Terms and Conditions apply. Installations start after Nov 1, 2024. Applicants. Eligibility criteria and T&Cs apply.
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