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January 20, 2025

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Solar Batteries, the NSW Rebate, and Home Warranty Insurance: Buyer Beware

Sign reading "Battery Rebate and Home Warranty Insurance" on a blurred background with Enphase logo.

If you’re a homeowner in New South Wales (NSW) looking into solar panels and battery storage, the new NSW home battery rebate could seem like a great way to save money.

However, qualifying for this rebate comes with specific requirements, and some of these may not be obvious at first glance. This article explains why you need to be careful when choosing a solar installer to ensure your system qualifies for the rebate.

Choosing an installer without the proper insurance or certifications can lead to unexpected costs, a disqualification from the rebate, and subpar service. Understanding these requirements can help you avoid costly mistakes.

In this article, you’ll learn about the following:

  • Why Home Warranty Insurance Matters
  • The Risks of Choosing a Non-Compliant Installer
  • Understanding NSW Rebate Compliance Requirements
  • Real-Life Examples of Compliance Challenges
  • How to Choose a Reliable, Compliant Solar Installer

By the end of this article, you’ll understand the importance of home warranty insurance in relation to the NSW battery rebate and your installation.

Why Home Warranty Insurance Matters

In May 2024, the NSW government announced a new home battery rebate to encourage more households to add battery storage to their solar systems. This rebate offers significant savings, but only if your installer meets strict requirements.

One critical requirement is home warranty insurance. Home warranty insurance protects homeowners by covering issues like defective workmanship or incomplete projects.

In NSW, home warranty insurance is mandatory for any building work over $20,000. This amount includes GST and government incentives like Small-Scale Technology Certificates (STCs) (the solar rebate)

If the total cost of your solar and battery installation exceeds $20,000 and your installer does not have this insurance, you will not qualify for the NSW home battery rebate.

Many reputable installers carry home warranty insurance as a standard practice. However, some companies cut costs by skipping this insurance. These companies often offer lower prices, which can seem appealing at first.

However, choosing an installer without home warranty insurance could mean that you lose access to the rebate. It also leaves you without financial protection if something goes wrong with the installation.

  • Bottom Line: Home warranty insurance is required for solar installations over $20,000. If you want to qualify for the NSW home battery rebate. Make sure your installer has this insurance to avoid potential problems. It never hurts to simply ask.

If you’re interested in learning a bit more about home warranty insurance, you might want to check out the following article titled, Home Warranty Insurance for Solar Installations in NSW.

Click here for savings.

The Risks of Choosing a Non-Compliant Installer

Choosing an installer who skips compliance requirements can lead to several risks. Some companies avoid purchasing home warranty insurance to keep their costs low.

These companies may also skip other compliance steps, such as hiring certified installers or following best practices for installation.

Here are some common risks of working with non-compliant installers:

  • Loss of Rebate Eligibility: If your installer does not have home warranty insurance, your system will not qualify for the NSW battery rebate. This could add thousands of dollars to your final cost.
  • Increased Risk of Poor Workmanship: Non-compliant installers often lack the resources or commitment to provide high-quality service. Their installations may be rushed, improperly done, or not up to industry standards.
  • No Long-Term Service Support: Non-compliant companies may lack a dedicated service department (like Penrith Solar Centre). If you need maintenance or repairs, they may be slow to respond or unable to provide reliable service.

A lower upfront cost may seem appealing, but in the long run, working with a non-compliant installer can end up costing you more.

Choosing an installer with the proper insurance, licensing, and experience helps ensure a reliable, high-quality solar installation that qualifies for all available rebates.

If you’re interested in learning a bit more about the importance of a good installer for your solar (the most important component of any system, seriously), you might want to check out the following article titled, In-house Installers vs. Subcontractors: Which is Better?

Ready to go solar? Click here.

Understanding NSW Rebate Compliance Requirements

To claim the NSW home battery rebate, your solar installation must meet specific compliance requirements. The rebate program is heavily regulated to maintain high standards and prevent fraud. Here are some of the main compliance requirements you should be aware of:

  1. Home Warranty Insurance: As mentioned earlier, home warranty insurance is mandatory for any solar and battery installation costing over $20,000. If your installer does not carry this insurance, you won’t be eligible for the rebate.
  2. Photo Documentation: The rebate program requires detailed photo documentation from your installer. This includes:
    • A beginning-of-day selfie of the licensed, SAA-accredited installer, taken in front of your property.
    • A mid-day selfie showing the progress of the installation.
    • An end-of-day selfie with the completed installation.
    • These photos must be geo-tagged and time-stamped to confirm that the installer was on-site and actively working throughout the day.
  3. On-Site Inspections: Installations under the NSW rebate program may also undergo on-site inspections. The Independent Pricing and Regulatory Tribunal (IPART) oversees these inspections to ensure compliance with rebate standards. Inspections may include checks on:
    • Installation quality.
    • Safety measures.
    • Equipment carried by installers.

These requirements are strict and add extra work for both installers and inspectors. The NSW rebate compliance rules aim to ensure high-quality installations and protect homeowners from fraud or unsafe practices.

  • Bottom Line: The NSW rebate program has strict compliance rules, including insurance, documentation, and on-site inspections, to ensure that installations meet high standards.

If you’d like to learn a bit more about problems with the NSW battery rebate, you might want to check out the following article titled, Are You Eligible for the NSW Battery Rebate? Problems and Considerations.

Click here for solar savings.

How to Choose a Reliable, Compliant Solar Installer

Choosing a reliable, compliant solar installer can help you qualify for the NSW rebate and avoid potential problems. Here are some tips to help you select an installer who meets all the necessary requirements:

  1. Verify Home Warranty Insurance:
    • Ask your installer to provide proof of home warranty insurance if your installation cost exceeds $20,000.
    • Ensure the insurance covers all potential issues related to workmanship or incomplete projects.
  2. Check Certifications:
    • Confirm that your installer is Solar Accreditation Australia-accredited (SAA) and licensed to perform solar and battery installations.
    • Only SAA-accredited installers can participate in the NSW rebate program, and this accreditation helps ensure quality.
  3. Ask About Compliance History:
    • Choose an installer who is transparent about their compliance processes and has a history of successful inspections.
    • Reputable companies should be familiar with the documentation, photo requirements, and inspection rules of the rebate program.

Working with a compliant, reputable installer helps protect your investment and ensures that you receive the full benefits of the NSW rebate.

Companies that meet compliance standards are more likely to provide high-quality service and long-term support for your solar system.

  • Bottom Line: Verify that your installer has the necessary insurance, certifications, and compliance experience to qualify for the NSW rebate and deliver a reliable installation.

If you’re interested in learning a bit more about shopping for a solar system, you might want to check out the following article titled, 6 Mistakes to Avoid When Buying Solar.

Start saving with solar today.

Home Warranty Insurance? Sunny You Should Ask.

The NSW home battery rebate offers an excellent opportunity to save on solar and battery installations, but homeowners need to choose their installers carefully. Working with a non-compliant installer could result in lost rebate eligibility, unexpected costs, and potential quality issues.

Take the time to research and ask questions before choosing an installer. These steps will help you get the most value from the NSW rebate and enjoy a reliable solar system for years to come.

At Penrith Solar Centre, we have home warranty insurance issued for every installation over $20,000 (including GST and STCs). We understand the ins and outs of solar installation because we do it all day every day.

A group of people posing in front of a building at Penrith Solar Centre.

If you’re interested in learning a bit more about the process of choosing components for your solar system, you might want to check out the following article titled, How to Shop for a Solar System.

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