NSW businesses considering batteries and air conditioning upgrades have access to a broader range of energy incentives this month, with a business battery discount now available and changes to the state’s energy certificate schemes taking effect from 7 September.
The battery incentive became available on 1 September and applies to eligible NSW businesses installing systems between 20 kWh and 30 MWh.
Businesses installing a battery alone may receive an indicative discount of about 20 to 30 per cent, while the NSW Government says the discount can rise to about 30 to 40 per cent when a battery is installed together with new or additional solar.
Separate changes to the Energy Savings Scheme and Peak Demand Reduction Scheme expand eligibility for multi-split systems and large air conditioners from 7 September.
Rather than operating as conventional grants with businesses applying directly to government for a set amount, the schemes use financial incentives linked to eligible equipment and activities.
Battery incentive reaches larger business systems
The battery discount is available to eligible commercial and industrial operations across NSW.
The NSW Government says the size of the discount is related to battery size, with larger batteries attracting larger discounts.
It estimates that a small business such as a grocery store could receive a discount of around $37,000, while a medium-sized business such as a dairy farm could receive around $355,000.
Those figures are examples provided by the government rather than fixed amounts available to every business.
Actual discounts can vary according to the installer, battery model, installation location, building design, compliance and administration costs and other factors associated with the installation.
The incentive is usually provided as an upfront discount in the installation quote, although the government says larger batteries may require different financial arrangements.
Businesses need to work with an installer offering the discount.
Solar can increase the battery discount
Businesses do not need an existing solar system to qualify for the battery incentive.
A smaller discount is available for an eligible battery installed without solar, while businesses installing new or additional solar with the battery can receive a larger discount.
For the higher incentive, the solar and battery must be installed within 90 days of each other and other eligibility requirements apply.
The NSW Government says businesses may also be eligible for Australian Government discounts on solar through the Small-scale Renewable Energy Scheme.
The battery incentive does not have a current closing date.
Different requirements apply as battery size increases
The NSW incentive covers batteries from 20 kWh through to 30 MWh, bringing a wide range of commercial and industrial systems within its eligibility limits.
The NSW Government says a battery between 20 and 50 kWh could support businesses such as restaurants, takeaway shops and convenience stores.
Different technical and installation requirements apply according to battery size.
For batteries between 20 kWh and 200 kWh, eligible equipment and installers must meet requirements set by the scheme.
Different requirements apply to systems between 200 kWh and 30 MWh, including fire safety and licensed installation requirements.
Residential buildings and data centres are excluded from the business battery incentive.
The discount cannot be claimed retrospectively for a battery commissioned before 1 September 2026.
Air conditioning eligibility expands
Changes affecting air conditioning equipment follow several days after the battery incentive became available.
New rules under the NSW Energy Security Safeguard take effect from 7 September and affect both the Energy Savings Scheme and Peak Demand Reduction Scheme.
The NSW Government says substantive updates to the Energy Savings Scheme include eligibility for multi-split systems and large air conditioners, as well as changes relating to air conditioner activity co-payments.
Changes to the Peak Demand Reduction Scheme also include eligibility for multi-split systems and large air conditioners.
The Energy Savings Scheme provides financial incentives for households and businesses to install eligible energy-efficient equipment and appliances. Energy Savings Certificates can be created for eligible activities that reduce energy use.
The Peak Demand Reduction Scheme has a different purpose, providing incentives for activities that reduce electricity consumption during periods of high demand. Peak Reduction Certificates are created for eligible activities that reduce demand during peak periods.
Both operate under the NSW Energy Security Safeguard.
Incentives delivered through certificate schemes
For businesses, the distinction between these incentives and a conventional government grant is important.
Under the Energy Savings Scheme, energy retailers and large energy users have targets that can be met by creating or buying Energy Savings Certificates generated through eligible energy-saving activities.
The Peak Demand Reduction Scheme similarly sets targets for electricity retailers and large electricity users, with Peak Reduction Certificates created through eligible activities that reduce electricity demand at peak times.
The battery incentive is delivered through the Peak Demand Reduction Scheme, which was expanded in July to introduce battery installations for businesses and apartment buildings.
The NSW Government says the scheme is intended to encourage households and businesses to reduce electricity consumption when demand on the grid is high.
For businesses considering energy equipment upgrades, September is a good time due to these changes that expand the range of battery and air conditioning installations that can potentially qualify for incentives, subject to the eligibility and technical requirements of the relevant scheme.
