Australia, Say Hello to Tesla Powerwall 3. Now Available.
Australia, Say Hello to Tesla Powerwall 3. Now Available.
The recently announced battery subsidy by the NSW Government initially looked promising, with good value deductions and customer eligibility, but when analysed, provokes more questions amongst both customers and battery installers, like us.
Let's explore what the scheme's requirements are, what batteries are eligible, how much you can save, and alternative methods to get great return-on-investment on your battery.
This scheme technically isn’t a rebate as certificates are created from each battery installed, which are then traded with an energy retailer based on their maximum demand over 3 selected days through summer. This means there is no guarantee of the price paid for each certificate, so it difficult to give an exact value of how much the incentive will be.
However, this hasn’t stopped everyone from referring to it as a rebate.
The ‘Peak Demand Reduction Scheme’ is designed to incentivise more Australians to invest in home battery storage, through up-front installation cost reductions. The options will allow you to take advantage of rooftop solar by adding battery storage, and by connecting to a Virtual Power Plant (VPP).
The program initiates from November 1, 2024, and is aimed to help stabilise the grid, further contributing to Australia’s Net Zero targets, and reducing overall emissions.
The available incentives depend on your situation. Here are the official scheme reductions from the NSW Government.
Existing Solar: Homes and businesses with existing solar can get between $1600 - $2400 off the up-front installation cost of a battery, depending on the battery size.
Without Solar: The incentive can be quoted into a new solar and battery system.
Virtual Power Plants: Get between $250-$400 for connecting your business or home to a Virtual Power Plant (VPP). This is available twice, with at least 3 years between claims.
Whilst the scheme has been announced with information on the NSW Government’s website, there is still uncertainty around how the incentive will play out in its infancy.
From our understanding, there doesn’t seem to be a lot of battery models that fit the criteria that is outlined. Our team mostly install Tesla Powerwall, as well as Sungrow and BYD batteries, which all don’t currently fit the current specification requirements. (See table below).
From a solar and battery installer’s points of view, it looks like the scheme is lacking consultation from the industry in order to develop a more refined incentive scheme.
There are 2 possible ways this could play out;
According to the ‘Peak
Demand Reduction Scheme’,
signed by Penelope Sharpe, the equipment requirements for the battery incentive for NSW are:
1. The End-User Equipment must be listed on the approved product list specified by the Scheme Administrator.
2. The End-User Equipment must have a usable battery capacity greater than 2 kWh and less than 28 kWh as recorded on the approved product list specified by the Scheme Administrator.
3. The End-User Equipment must have a minimum 6 years remaining on the warranty.
4. The End-User Equipment warranty must define the normal use conditions during the operation of the End-User Equipment as not being less than:
a. A minimum ambient temperature range of -10 °C to 50 °C
b. A minimum warranted throughput of 3.65 MWh per kWh of Usable Battery Capacity
5. Participation in the activity must not void or diminish the End-User Equipment warranty below a guarantee of at least seventy percent (70%) of Usable Capacity being retained 10 years from the date the End-User Equipment was installed at the site.
|
(1) Approved List |
(2) 2-28 kWh |
(3) <6-year warranty |
(4a) -10 °C to 50 °C Temp. range |
(4b) <3.65MWh per kWh Warranted throughput |
(5) <70% capacity after 10 yr |
|
|
Tesla
Powerwall 2 |
TBA |
13.5 kWh |
10 Years | –20°C to 50°C | 2.8 MWh per kWh | 70% |
|
Tesla
Powerwall 3 |
TBA |
13.5 kWh | 10 Years | –20°C to 50°C | 2.8 MWh per kWh | 70% |
|
Sungrow
SBH series |
TBA |
10-25 kWh | 10 Years |
Charge：0 ℃ - 50 ℃ Discharge：-20 ℃ - 50 ℃ |
4.2 MWh per kWh | 60% |
|
Sungrow
SBR series |
TBA |
9.6-25.6 kWh | 10 Years | Charge：0 ℃ - 50 ℃ Discharge：-20 ℃ - 50 ℃ | 4.2 MWh per kWh | 60% |
|
BYD
Battery-box HVM |
TBA |
8.3-22.1 kWh | 10 Years | -10 °C to +50°C | 3.1 MWh per kWh | 60% |
|
BYD
Battery-box HVS |
TBA |
5.1-12.8 kWh | 10 Years | -10 °C to +50°C | 3 MWh per kWh | 60% |
|
GOODWE
Lynx Series LX F G2 |
TBA |
6.4-28.8 kWh | 10 Years | Charge: 0 ~ +50; Discharge: -20 ~ +50 | 2.5 MWh per kWh | 70% |
|
LG
RESU12 |
TBA |
11.7 kWh | 10 Years | -10 to 50°C |
3.3 MWh per kWh |
60% |
According to this requirement list, the batteries that were most expected to be available for the battery rebate scheme, like Tesla Powerwall, Sungrow, and BYD batteries are unfortunately not eligible for the rebate under the current requirements. As shown above, Tesla Powerwalls miss the ambient temperature and throughput requirements.
Some of the battery manufacturers may alter their datasheets and warranties without adjusting their technology, to meet the requirements.
Current eligible batteries include SolaX, Sonnen, Alpha-ESS, and Zenaji of which we do not install.
Approved Product List: The specified product list will include an approved list of batteries that meet quality and safety standards. This is not referring to the CEC approved battery list, rather the specific Scheme Administrator list which is yet to be released.
Useable Capacity: With the range of 2-28 kWh of usable capacity, it refers to the amount of energy a battery can actually store and distribute. This will be slightly less than the nominal total capacity. According to the NSW Government’s website, a typical 5-person household consumes about 25kWh per day.
Warranty Duration: Battery manufacturers are required to have at least 6 years of warranty to ensure long-term protection. However, the batteries we install like Tesla Powerwall, and Sungrow & BYD batteries all come with 10-year warranties. This confirms your unit is covered in the event of any failures.
Warranty Conditions: The temperature range is specified to ensure the battery will perform reliably in various climates. Some batteries have multiple temperature ranges which may make things confusing.
Throughputs refer to how long a battery can last with a significant number of charging and discharging cycles. This is to confirm you are getting the most value for money and avoid premature failure. This is where a lot of batteries fail as their throughput figure is lower than the requirement, as seen with Tesla Powerwall.
70% Remaining Capacity: Over the course of 10 years, batteries will have an expected degradation, which is measured of
the remaining available usable capacity. Sungrow and BYD batteries reach 60% remaining usable capacity
at the 10-year mark, and Tesla Powerwall with 70% remaining, according to their datasheets.
With such a successful solar rebate over the past few years, we, and other solar and battery companies were really excited as to how this scheme would play out and benefit everyone. Whilst we are still hopeful in what a refined scheme could bring, we currently can’t offer incentives on the quality systems we have installed for years due to eligibility issues.
Customers are expecting to get a deduction on the popular batteries but will be in for a shock after they wait for a scheme that most likely won’t apply to the system they want.
However, there’s good news.. there are other strategies that take advantage of battery storage for a great return-on-investment.
Unfortunately, we can’t at this stage include any scheme deductions with battery systems, as specific pricing is still yet to be revealed. However, as a lot of people look to install batteries, installing solar now can ensure you’re eligible for the scheme’s commencement.
If you hold off on getting both a battery and a solar system until the scheme is available, there may be delays in taking advantage of the scheme due to the installation of solar and the increased demand. By investing solar in now and a battery solution later, you get in first and avoid the rebate rush.
Amber allows customers to access the wholesale energy market, and buy cheap energy, and sell that and excess solar to the grid for returns. This is a safer bet for those who just want to save right now, as it is currently available.
By the time the incentive commences, we predict that prices will increase due to market demand of available battery units which may alleviate most of the discount that you may have been expecting. You can invest in your battery now, join Amber, and potentially earn back the same amount you would save if you were to wait for the scheme to commence.
Some members of our team have joined Amber with their solar and battery systems, and have been able to earn up to $220 in one day by selling their stored energy through peak demand spike periods.
As an installer of battery storage solutions throughout the Hunter, Central Coast, and Mid & North Coast regions, we genuinely want to see more property owners access the battery storage market with discounts on batteries, to take advantage of the energy they produce. It’s a win-win for NSW’s energy, us, and most importantly, you the customer.
There is so much potential from a program of this scale, similar to how the solar rebate played out. That was well-refined, and many
residents chose to participate in the worthwhile benefits. We want to see reputable brands be eligible for the incentive to ensure
quality and long-lasting battery installations all through NSW.
Battery storage is a great way to store excess solar generated throughout the day to be consumed through peak demand periods. Battery owners can maximise their solar investment, reducing energy costs and grid demand, whilst also contributing to grid stability and reduced emission targets.
Who is the Battery Scheme for? The incentive is for people who are looking to invest in solar batteries, to help more Australians gain access to this evolving technology.
Until we get a better understanding of the mechanics of the battery scheme in NSW, we can only speculate about the potential benefits of the scheme as certain aspects will indicate its trajectory, such as the Approved product list which is being specified by the Scheme Administrator.
If you’re interested in keeping up to date with how the scheme will play out, consider signing up to our updates list and we will send you any new information we have about the battery incentive scheme.
Sources
https://www.energy.gov.au/solar/financial-benefits-solar/government-rebates-and-loans-solar
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