Market Update | 13 June 2025

• Major Changes to NSW Battery Rebate Program Confirmed
• CER Releases Draft Application Form for Federal Battery Incentive Claims
• NSW Schemes to Ban Door-knocking
• PRCs & ESC’s Climb, LGCs Falling

Major Changes to the NSW Battery Program Confirmed.

Following the confirmation of the Federal government’s Cheaper Home battery program, the NSW scheme regulator has confirmed major changes to the battery incentives under the NSW Peak Demand Reduction Scheme (PDRS).

Effective from July 1, the changes are;

• Up-front rebates for installing batteries (BESS 1) will no longer be available – so cannot be combined or stacked with the new Federal battery incentives.
• The up-front incentives for connecting batteries to Virtual Power Plants VPP’s – (BESS 2) have been substantially increased, and these incentives can be combined with the Federal battery program.

The changes to BESS2 will almost double the up-front incentive available to consumers – for example, the number of Peak Reduction Certificates (PRCs) created by a 10kW battery will increase from approx. 120 to 220. This change is expected to increase the uptake of VPPs, which to date has been relatively low, with just 5% of customers installing a battery under BESS1 opting to connect to a VPP.

The BESS 2 program, which was previously restricted to residential customers, has also been expanded to include small businesses.

The removal of BESS1 has already prompted a significant increase in the spot price for PRCs due to an anticipated reduction in the creation of certificates, and, if sustained, will further improve the value of incentives consumers receive up-front for connecting to a VPP.

Clean Energy Regulator (CER) Releases Draft Application Form for Incentives Under the Federal Government’s New Battery Program.

With just over two weeks to go before the official July 1 launch, the CER has released the draft application form, which Registered Agents and Persons will need to complete to apply for incentives under the Federal Government’s Cheaper Home Batteries Program.

The new incentives are based on Small-Scale Technology Certificates (STCs), with applications to be submitted through the CER’s Renewable Energy Certificate (REC) Registry.

The relatively extensive form is subject to change depending on the final drafting of amendments to the Renewable Energy (Electricity) Regulations 2001, which the government is fast-tracking to ensure the changes are in place prior to July 1.

The CER has also announced that shortly after the launch, it will be undertaking inspections to ensure the battery installations meet installation requirements and are eligible for the creation of STC’s. Results from these inspections will be shared with state and territory regulators and the Solar Accreditation Authority (SAA) to help guide regulation of the Scheme moving forward.

And just a reminder to those submitting incentive applications – bulk uploads of claims on the REC registry are not expected to be available until September, so additional time and resources should be allowed for manual uploading during the first few months of the program.

NSW Schemes Moving to Ban Door-knocking Campaigns.

In line with recent changes implemented by the Victorian Energy Upgrades (VEU) program, the NSW Scheme regulator is proposing to ban door-knocking for the promotion and sale of energy efficiency upgrades under both the Peak Demand Reduction Scheme (PDRS) and the Energy Savings Scheme (ESS).

The ban, which has been tabled to commence in August 2025, is designed to reduce high-pressure sales techniques and annoyance to help businesses and households make better informed decisions and therefore receive high-quality upgrades. Providers in NSW will need to plan for this change and, if required, make adjustments to their future sales and marketing approaches.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.