Incentives for residential batteries

The incentive is not a direct rebate to customers. It’s usually provided as an upfront discount by the approved supplier that installs the battery or operates the VPP. 

Approved suppliers are known as Accredited Certificate Providers (ACPs). These are businesses that have been accredited by the Scheme Administrator (IPART) to conduct specific installations and upgrades under the Peak Demand Reduction Scheme.

The incentives will be available from 1 November 2024 to give the Scheme Administrator (IPART) time to establish its compliance processes, accredit the approved suppliers and engage and train staff for conducting audits. 

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 VPP means that customers will agree to have 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 PDRS provides an incentive for proof that a battery has joined a VPP. 

Customers can receive financial incentives for joining a VPP, lowering the payback time of their solar and battery system. 

Yes, you’ll need to have rooftop solar installed on the premises and use an approved supplier under the PDRS to install the battery. 

Generally, installers will provide a quote that states both the cost of the battery and the installation separately. However, installers have full discretion to choose how they quote, and some may instead provide a single all-inclusive price. 

We recommend keeping a record of communications that clearly states the inclusions and exclusions of a quote before any money changes hands.  

This is to be consistent with schemes in other Australian states.  Most eligible sites will only need batteries under 28kWh. The national average energy use for a five-person household is 25kWh per day. 

The installation incentive will only be available for new battery installation.  The VPP participation incentive is available for already-installed batteries, provided that the battery is signed onto a VPP, has 6 years of the manufacturers’ warranty remaining and meets the equipment requirements. 

Provided that all equipment and implementation requirements of the standards are met, as required in the PDRS, and ongoing maintenance and monitoring are conducted, there is a very low risk of a battery causing a fire. 

Approved suppliers under the PDRS will be subject to additional compliance checks to ensure compliance with strict safety requirements, including professional installation and adherence to relevant standards and regulations. 

Yes. Provided that the model appears on the approved product list specified by the Scheme Administrator and all the equipment and implementation requirements specified in the Rule are met. 

If an approved supplier doesn’t offer the battery you want, shop around and find one who does. 

No. The PDRS aims to reduce the load on the electricity grid. Off-grid batteries cannot help reduce the load. 

Ensure compliance with relevant Australian standards and regulations for installation and operation. Choose proper battery design, ventilation, and professional installation to prevent overheating and ensure optimal operation. 

Approved suppliers will need to work with tradespeople who are licenced to do the work. The person doing the work needs to be listed on the Clean Energy Council’s list: https://www.cleanenergycouncil.org.au/consumers/find-an-installer