‘Betrayal': NSW to cut battery subsidies as federal scheme kicks in
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.
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