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The Advertiser
a day ago
- Business
- The Advertiser
Home solar battery contracts ripped up as promised government rebate ditched
Households in NSW promised federal and state government discounts on a new home solar battery have been told they are no longer eligible for both and will need to start from scratch. Australians with rooftop solar rushed to take advantage of the new federal "cheaper home batteries" discount - worth about $4000 on a typical 11.5kWh battery - in the wake of Labor's May election win. Many installers took orders and started fitting batteries on the basis the federal rebate could be claimed after July 1 on top of any state schemes. But the NSW government on June 10 announced it was scrapping its existing discount after only seven months. Instead, it decided to expand a program to encourage households to sell power stored in batteries back to the market through virtual power plants. This left installers with a lot difficult phone calls to make to battery customers who they'd promised would receive both the state Peak Demand Reduction Scheme (PDRS) discount and the federal rebate on new batteries. Some customers who had not yet had a battery fitted were offered refunds on their deposits, or new quotes with the NSW discount - sometimes worth thousands of dollars - removed. "There have been no circumstances where people can claim solar battery installation incentives under both the commonwealth and NSW schemes," a spokesman for the NSW energy department said. "We recommend that households and small businesses contact their installer to discuss any quote that claimed both incentives would apply." Installers would likely have to bear the cost of the state discount they expected where households had already paid for, and received, their battery. Solar Battery Group, which operates nationally and has been installing 40 batteries a day since the government's re-election on May 3, was one of those. "If the customer is adamant they don't want to change the size of battery or the specifications, then yes, we will wear it," chief executive James Hetherington said. "We've had a lot of people wanting finance that are very confused because those [NSW] laws changed." Mr Hetherington said each business made a choice about how to respond to the federal funding - but new policy "hand grenades" were coming thick and fast across the country. "They did warn all of us: 'Install at your own risk'," he said. "They made that quite clear and we all made our own individual decisions on what risks we were going to take based on our own margins, on our own business models." He said the industry was moving very fast. "It's never moved like this in its history with batteries. "It's had this, obviously, many times with solar and solar panels, but the battery industry is not used to this, so it's got a few growing pains in the next six months," Mr Hetherington said. A spokeswoman for Energy Minister Chris Bowen said the federal battery discount was always designed to be used in conjunction with state incentives. "We designed the cheaper home batteries program to be stackable with state incentives, and it is," she said. "NSW are now also offering a battery incentive, for joining virtual power plants, which is stackable with ours. "The design and balance of NSW incentives is a matter for them, but giving more people more support to get batteries and join [virtual power plants] is good news for the industry." But the industry at a wider level was nonetheless disappointed in the cancellation of the NSW battery installation discount. "The announcement of the new NSW scheme was not the outcome they had expected or wanted," Smart Energy Council acting chief executive Wayne Smith said. "Industry has been operating under a great deal of uncertainty as they awaited clarity around the NSW PDRS that's caused considerable pain for many," he said. "The cuts to the scheme will continue to cause pain." RESINC Solar and Batteries founder Leigh Storr did not offer customers both NSW and federal installation discounts. "I feel for any installers who've jumped the gun," he said. "What they've been selling on is hope." He said the cheaper home batteries discount was a large enough incentive on its own to encourage battery take up. "I'm in huge support of what Chris Bowen has done," Mr Storr said. The PDRS scheme in NSW, which delivered about 11,000 rebates in first six months of the program, will be scrapped after June 30. Instead households with batteries are eligible for up to $1500 to help more connect to virtual power plants, which take customers' excess energy stored in batteries and sell it on. "From 1 July the NSW Peak Demand Reduction Scheme (PDRS) incentives for installing a battery will be suspended, but the consumers will have access to higher incentives under the commonwealth cheaper home batteries program," an NSW energy department spokesman said. "Incentives under the NSW PDRS to connect batteries to virtual power plants (VPPs) will almost double, and can be stacked with the commonwealth program." Any new batteries cannot be turned on before July 1 in order to be eligible for the federal discount under the $2.3 billion cheaper home batteries program. Households in NSW promised federal and state government discounts on a new home solar battery have been told they are no longer eligible for both and will need to start from scratch. Australians with rooftop solar rushed to take advantage of the new federal "cheaper home batteries" discount - worth about $4000 on a typical 11.5kWh battery - in the wake of Labor's May election win. Many installers took orders and started fitting batteries on the basis the federal rebate could be claimed after July 1 on top of any state schemes. But the NSW government on June 10 announced it was scrapping its existing discount after only seven months. Instead, it decided to expand a program to encourage households to sell power stored in batteries back to the market through virtual power plants. This left installers with a lot difficult phone calls to make to battery customers who they'd promised would receive both the state Peak Demand Reduction Scheme (PDRS) discount and the federal rebate on new batteries. Some customers who had not yet had a battery fitted were offered refunds on their deposits, or new quotes with the NSW discount - sometimes worth thousands of dollars - removed. "There have been no circumstances where people can claim solar battery installation incentives under both the commonwealth and NSW schemes," a spokesman for the NSW energy department said. "We recommend that households and small businesses contact their installer to discuss any quote that claimed both incentives would apply." Installers would likely have to bear the cost of the state discount they expected where households had already paid for, and received, their battery. Solar Battery Group, which operates nationally and has been installing 40 batteries a day since the government's re-election on May 3, was one of those. "If the customer is adamant they don't want to change the size of battery or the specifications, then yes, we will wear it," chief executive James Hetherington said. "We've had a lot of people wanting finance that are very confused because those [NSW] laws changed." Mr Hetherington said each business made a choice about how to respond to the federal funding - but new policy "hand grenades" were coming thick and fast across the country. "They did warn all of us: 'Install at your own risk'," he said. "They made that quite clear and we all made our own individual decisions on what risks we were going to take based on our own margins, on our own business models." He said the industry was moving very fast. "It's never moved like this in its history with batteries. "It's had this, obviously, many times with solar and solar panels, but the battery industry is not used to this, so it's got a few growing pains in the next six months," Mr Hetherington said. A spokeswoman for Energy Minister Chris Bowen said the federal battery discount was always designed to be used in conjunction with state incentives. "We designed the cheaper home batteries program to be stackable with state incentives, and it is," she said. "NSW are now also offering a battery incentive, for joining virtual power plants, which is stackable with ours. "The design and balance of NSW incentives is a matter for them, but giving more people more support to get batteries and join [virtual power plants] is good news for the industry." But the industry at a wider level was nonetheless disappointed in the cancellation of the NSW battery installation discount. "The announcement of the new NSW scheme was not the outcome they had expected or wanted," Smart Energy Council acting chief executive Wayne Smith said. "Industry has been operating under a great deal of uncertainty as they awaited clarity around the NSW PDRS that's caused considerable pain for many," he said. "The cuts to the scheme will continue to cause pain." RESINC Solar and Batteries founder Leigh Storr did not offer customers both NSW and federal installation discounts. "I feel for any installers who've jumped the gun," he said. "What they've been selling on is hope." He said the cheaper home batteries discount was a large enough incentive on its own to encourage battery take up. "I'm in huge support of what Chris Bowen has done," Mr Storr said. The PDRS scheme in NSW, which delivered about 11,000 rebates in first six months of the program, will be scrapped after June 30. Instead households with batteries are eligible for up to $1500 to help more connect to virtual power plants, which take customers' excess energy stored in batteries and sell it on. "From 1 July the NSW Peak Demand Reduction Scheme (PDRS) incentives for installing a battery will be suspended, but the consumers will have access to higher incentives under the commonwealth cheaper home batteries program," an NSW energy department spokesman said. "Incentives under the NSW PDRS to connect batteries to virtual power plants (VPPs) will almost double, and can be stacked with the commonwealth program." Any new batteries cannot be turned on before July 1 in order to be eligible for the federal discount under the $2.3 billion cheaper home batteries program. Households in NSW promised federal and state government discounts on a new home solar battery have been told they are no longer eligible for both and will need to start from scratch. Australians with rooftop solar rushed to take advantage of the new federal "cheaper home batteries" discount - worth about $4000 on a typical 11.5kWh battery - in the wake of Labor's May election win. Many installers took orders and started fitting batteries on the basis the federal rebate could be claimed after July 1 on top of any state schemes. But the NSW government on June 10 announced it was scrapping its existing discount after only seven months. Instead, it decided to expand a program to encourage households to sell power stored in batteries back to the market through virtual power plants. This left installers with a lot difficult phone calls to make to battery customers who they'd promised would receive both the state Peak Demand Reduction Scheme (PDRS) discount and the federal rebate on new batteries. Some customers who had not yet had a battery fitted were offered refunds on their deposits, or new quotes with the NSW discount - sometimes worth thousands of dollars - removed. "There have been no circumstances where people can claim solar battery installation incentives under both the commonwealth and NSW schemes," a spokesman for the NSW energy department said. "We recommend that households and small businesses contact their installer to discuss any quote that claimed both incentives would apply." Installers would likely have to bear the cost of the state discount they expected where households had already paid for, and received, their battery. Solar Battery Group, which operates nationally and has been installing 40 batteries a day since the government's re-election on May 3, was one of those. "If the customer is adamant they don't want to change the size of battery or the specifications, then yes, we will wear it," chief executive James Hetherington said. "We've had a lot of people wanting finance that are very confused because those [NSW] laws changed." Mr Hetherington said each business made a choice about how to respond to the federal funding - but new policy "hand grenades" were coming thick and fast across the country. "They did warn all of us: 'Install at your own risk'," he said. "They made that quite clear and we all made our own individual decisions on what risks we were going to take based on our own margins, on our own business models." He said the industry was moving very fast. "It's never moved like this in its history with batteries. "It's had this, obviously, many times with solar and solar panels, but the battery industry is not used to this, so it's got a few growing pains in the next six months," Mr Hetherington said. A spokeswoman for Energy Minister Chris Bowen said the federal battery discount was always designed to be used in conjunction with state incentives. "We designed the cheaper home batteries program to be stackable with state incentives, and it is," she said. "NSW are now also offering a battery incentive, for joining virtual power plants, which is stackable with ours. "The design and balance of NSW incentives is a matter for them, but giving more people more support to get batteries and join [virtual power plants] is good news for the industry." But the industry at a wider level was nonetheless disappointed in the cancellation of the NSW battery installation discount. "The announcement of the new NSW scheme was not the outcome they had expected or wanted," Smart Energy Council acting chief executive Wayne Smith said. "Industry has been operating under a great deal of uncertainty as they awaited clarity around the NSW PDRS that's caused considerable pain for many," he said. "The cuts to the scheme will continue to cause pain." RESINC Solar and Batteries founder Leigh Storr did not offer customers both NSW and federal installation discounts. "I feel for any installers who've jumped the gun," he said. "What they've been selling on is hope." He said the cheaper home batteries discount was a large enough incentive on its own to encourage battery take up. "I'm in huge support of what Chris Bowen has done," Mr Storr said. The PDRS scheme in NSW, which delivered about 11,000 rebates in first six months of the program, will be scrapped after June 30. Instead households with batteries are eligible for up to $1500 to help more connect to virtual power plants, which take customers' excess energy stored in batteries and sell it on. "From 1 July the NSW Peak Demand Reduction Scheme (PDRS) incentives for installing a battery will be suspended, but the consumers will have access to higher incentives under the commonwealth cheaper home batteries program," an NSW energy department spokesman said. "Incentives under the NSW PDRS to connect batteries to virtual power plants (VPPs) will almost double, and can be stacked with the commonwealth program." Any new batteries cannot be turned on before July 1 in order to be eligible for the federal discount under the $2.3 billion cheaper home batteries program. Households in NSW promised federal and state government discounts on a new home solar battery have been told they are no longer eligible for both and will need to start from scratch. Australians with rooftop solar rushed to take advantage of the new federal "cheaper home batteries" discount - worth about $4000 on a typical 11.5kWh battery - in the wake of Labor's May election win. Many installers took orders and started fitting batteries on the basis the federal rebate could be claimed after July 1 on top of any state schemes. But the NSW government on June 10 announced it was scrapping its existing discount after only seven months. Instead, it decided to expand a program to encourage households to sell power stored in batteries back to the market through virtual power plants. This left installers with a lot difficult phone calls to make to battery customers who they'd promised would receive both the state Peak Demand Reduction Scheme (PDRS) discount and the federal rebate on new batteries. Some customers who had not yet had a battery fitted were offered refunds on their deposits, or new quotes with the NSW discount - sometimes worth thousands of dollars - removed. "There have been no circumstances where people can claim solar battery installation incentives under both the commonwealth and NSW schemes," a spokesman for the NSW energy department said. "We recommend that households and small businesses contact their installer to discuss any quote that claimed both incentives would apply." Installers would likely have to bear the cost of the state discount they expected where households had already paid for, and received, their battery. Solar Battery Group, which operates nationally and has been installing 40 batteries a day since the government's re-election on May 3, was one of those. "If the customer is adamant they don't want to change the size of battery or the specifications, then yes, we will wear it," chief executive James Hetherington said. "We've had a lot of people wanting finance that are very confused because those [NSW] laws changed." Mr Hetherington said each business made a choice about how to respond to the federal funding - but new policy "hand grenades" were coming thick and fast across the country. "They did warn all of us: 'Install at your own risk'," he said. "They made that quite clear and we all made our own individual decisions on what risks we were going to take based on our own margins, on our own business models." He said the industry was moving very fast. "It's never moved like this in its history with batteries. "It's had this, obviously, many times with solar and solar panels, but the battery industry is not used to this, so it's got a few growing pains in the next six months," Mr Hetherington said. A spokeswoman for Energy Minister Chris Bowen said the federal battery discount was always designed to be used in conjunction with state incentives. "We designed the cheaper home batteries program to be stackable with state incentives, and it is," she said. "NSW are now also offering a battery incentive, for joining virtual power plants, which is stackable with ours. "The design and balance of NSW incentives is a matter for them, but giving more people more support to get batteries and join [virtual power plants] is good news for the industry." But the industry at a wider level was nonetheless disappointed in the cancellation of the NSW battery installation discount. "The announcement of the new NSW scheme was not the outcome they had expected or wanted," Smart Energy Council acting chief executive Wayne Smith said. "Industry has been operating under a great deal of uncertainty as they awaited clarity around the NSW PDRS that's caused considerable pain for many," he said. "The cuts to the scheme will continue to cause pain." RESINC Solar and Batteries founder Leigh Storr did not offer customers both NSW and federal installation discounts. "I feel for any installers who've jumped the gun," he said. "What they've been selling on is hope." He said the cheaper home batteries discount was a large enough incentive on its own to encourage battery take up. "I'm in huge support of what Chris Bowen has done," Mr Storr said. The PDRS scheme in NSW, which delivered about 11,000 rebates in first six months of the program, will be scrapped after June 30. Instead households with batteries are eligible for up to $1500 to help more connect to virtual power plants, which take customers' excess energy stored in batteries and sell it on. "From 1 July the NSW Peak Demand Reduction Scheme (PDRS) incentives for installing a battery will be suspended, but the consumers will have access to higher incentives under the commonwealth cheaper home batteries program," an NSW energy department spokesman said. "Incentives under the NSW PDRS to connect batteries to virtual power plants (VPPs) will almost double, and can be stacked with the commonwealth program." Any new batteries cannot be turned on before July 1 in order to be eligible for the federal discount under the $2.3 billion cheaper home batteries program.
Sydney Morning Herald
2 days ago
- Business
- Sydney Morning Herald
‘Betrayal': NSW to cut battery subsidies as federal scheme kicks in
The NSW government will end its incentive to install a home solar battery from July in favour of an enhanced Commonwealth scheme, and use the savings to encourage households to allow their stored energy to be remotely accessed by the grid. Since last November, NSW consumers have been able to access a rebate of up to $2600 (depending on the size of the battery) to attach storage to their rooftop solar systems. The scheme resulted in 11,400 battery installations across the state in six months. The program will conclude at the end of this month, while the Australian government's $2.3 billion Cheaper Home Batteries Program is set to start on July 1. The federal rebate, announced before the election, will reduce the cost of a battery by about 30 per cent, making it about double the size of the state scheme. Heidi Lee Douglas, chief executive of consumer advocacy group Solar Citizens, said the NSW government had betrayed solar households with its decision and put its legislated net zero targets further out of reach. The NSW Net Zero Commission has warned that NSW would not reach its emissions reduction targets from 2030 to 2050. 'This surprise decision is a blow to solar home owners planning to buy a home battery in coming months, and a betrayal of the prime minister and Federal Minister for Climate and Energy Chris Bowen's assurance that the federal Cheaper Home Batteries program can be 'stacked' with state initiatives,' Douglas said. 'This bizarre decision puts the timely closure of the Eraring coal-fired power plant at risk. A key justification for extending the life of the plant was the lack of energy storage. The Commonwealth stepped in by boosting battery rebates further and now the NSW government is making that transition harder.' The NSW government said the money would remain within its Peak Demand Reduction Scheme, a program designed to reduce electricity demand during peak periods. The government would redirect the funds to double the payments to encourage solar households to sign up to a virtual power plant (VPP) – a group of solar-powered batteries linked by software, which are owned by households and small businesses that have consented for excess stored power to be sold to the grid. Industry support
Sydney Morning Herald
2 days ago
- Business
- Sydney Morning Herald
‘Better bang for buck': NSW to cut battery subsidies as federal scheme kicks in
The NSW government will end its incentive to install a home solar battery from July in favour of an enhanced Commonwealth scheme, and use the savings to encourage households to allow their stored energy to be remotely accessed by the grid. Since last November, NSW consumers have been able to access a rebate of up to $2600 (depending on the size of the battery) to attach storage to their rooftop solar systems. The scheme resulted in 11,400 battery installations across the state in six months. The program will conclude at the end of this month, while the Australian government's $2.3 billion Cheaper Home Batteries Program is set to start on July 1. The federal rebate, announced before the election, will reduce the cost of a battery by about 30 per cent, making it about double the size of the state scheme. The NSW government will redirect the money to its Peak Demand Reduction Scheme, a program designed to reduce electricity demand during peak periods. In particular, the government is doubling the payments to encourage solar households to sign up to a virtual power plant (VPP) – a group of solar-powered batteries linked by software, which are owned by households and small businesses that have consented for excess stored power to be sold to the grid. Smart Energy Council acting chief executive Wayne Smith said VPPs were important because it increased the stability of the grid and this lowered power bills for everyone, not just those households with solar panels and batteries. 'There's a private benefit and a public good,' Smith said. 'It's actually important to find ways to try to integrate the individual home batteries into a much bigger collective battery system.' The Smart Energy Council says a 6 kWh battery at $6000-$8000 would meet the needs of nine out of 10 homes. The federal subsidy would be about $2232 and the NSW incentive to connect to a VPP would be about $444. On an 11.5kWh battery, the federal subsidy would be about $4278 and the NSW support for a VPP connection would be $850.
The Age
2 days ago
- Business
- The Age
‘Better bang for buck': NSW to cut battery subsidies as federal scheme kicks in
The NSW government will end its incentive to install a home solar battery from July in favour of an enhanced Commonwealth scheme, and use the savings to encourage households to allow their stored energy to be remotely accessed by the grid. Since last November, NSW consumers have been able to access a rebate of up to $2600 (depending on the size of the battery) to attach storage to their rooftop solar systems. The scheme resulted in 11,400 battery installations across the state in six months. The program will conclude at the end of this month, while the Australian government's $2.3 billion Cheaper Home Batteries Program is set to start on July 1. The federal rebate, announced before the election, will reduce the cost of a battery by about 30 per cent, making it about double the size of the state scheme. The NSW government will redirect the money to its Peak Demand Reduction Scheme, a program designed to reduce electricity demand during peak periods. In particular, the government is doubling the payments to encourage solar households to sign up to a virtual power plant (VPP) – a group of solar-powered batteries linked by software, which are owned by households and small businesses that have consented for excess stored power to be sold to the grid. Smart Energy Council acting chief executive Wayne Smith said VPPs were important because it increased the stability of the grid and this lowered power bills for everyone, not just those households with solar panels and batteries. 'There's a private benefit and a public good,' Smith said. 'It's actually important to find ways to try to integrate the individual home batteries into a much bigger collective battery system.' The Smart Energy Council says a 6 kWh battery at $6000-$8000 would meet the needs of nine out of 10 homes. The federal subsidy would be about $2232 and the NSW incentive to connect to a VPP would be about $444. On an 11.5kWh battery, the federal subsidy would be about $4278 and the NSW support for a VPP connection would be $850.
