Nic Seton,from Parents for Climate,has solar panels on his roof but,like most people,no battery.

Nic Seton,from Parents for Climate,has solar panels on his roof but,like most people,no battery.Credit:Louie Douvis

Virtual power plants group the power produced by rooftop solar and stored in batteries,which can then be released into the grid to address frequency and voltage imbalances,local disruptions or disturbances.

Australia leads the world in rooftop solar,but only about 20 per cent of homes with solar panels in NSW also have storage batteries,which typically cost about $10,000 on top of the price of solar installation.

The incentive announcement comes a day after the state government confirmed that it had entered into anagreement with Origin Energy to keep its Eraring coal-fired power station open until 2027.

Under the terms of the agreement announced on Thursday,the government will not make any upfront payment to Origin but will enter into a “risk-sharing” arrangement if Origin agrees,which could see taxpayers spend up to $450 million over two years if Origin makes a loss.

While environmental and green groups criticised the Origin agreement,the household battery announcement was described as playing an “important role in the clean energy transition.”

Clean Energy Council policy director Con Hristodoulidis said household batteries would help to further lower energy bills.

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“It is fantastic to see a strong focus from the NSW government in ensuring that behind-the-meter batteries are more accessible to households,building on the continual success of Australia’s world-leading uptake of rooftop solar,” Hristodoulidis said.

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Environment Minister Penny Sharpe said the incentive scheme would make household batteries more affordable and accessible.

“This is a targeted action to support those with solar to take the next step to lowering their bills by using renewable energy. It also supports the state’s transition to renewable energy,” Sharpe said.

Stephanie Bashir,chief executive of Nexa Advisory and a former senior director of public policy at AGL Energy,said any program to bolster domestic generation was welcomed.

However,she questioned its implementation,given the subsidies do not kick in for six months.

“It does not start until November,now anyone considering buying a battery will wait until then,so it will put a dampener on the battery market,” Bashir said.

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Opposition environment spokesman James Griffin said the household battery announcement was timed to placate green groups who would have been furious about the Eraring lifeline.

“People see straight through announcements like this. On Thursday,the government made the decision to keep burning black coal for years,and on Friday,they’re trying to offset that guilt with an embarrassingly small battery subsidy program,” Griffin said.

“Setting aside the fact that the program doesn’t start until November,it’s not even a substantial contribution to the cost of a household battery,which is currently around $15,000.”

The new incentives are part of the government’s Peak Demand Reduction Scheme. Peak demand occurs when electricity usage is at its highest,such as in the middle of summer when millions of households turn on their air conditioners.

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