Peak Reduction Certificates (PRCs)
The Peak Demand Reduction Scheme (PDRS) is a NSW-based energy demand reduction scheme. From 1 November 2024 the Store and Shift method will commence for Battery Energy Storage Systems (BESS).
The PDRS was established to reduce peak electricity demand and pressure on the electricity network in NSW. This is important because reducing peak demand minimises the risk of blackouts or price spikes during hot summer days when electricity usage can suddenly increase, and demand is at its highest.
The PDRS works by providing financial incentives for households and businesses to implement activities that create “peak demand reduction capacity” (i.e. activities that can reduce demand for electricity during the period between 2.30pm to 8.30pm Australian Eastern Standard Time (AEST) from 1 November to 31 March). These incentives are passed on to households and businesses by Accredited Certificate Providers (ACPs) that can create tradeable certificates, called Peak Reduction Certificates (PRCs), from the activity.
Liable electricity retailers and other Scheme Participants have a legislative obligation to buy and surrender PRCs every year to meet their obligations under the PDRS.
What is eligible for NSW Battery Incentives?
Under the PDRS, you can claim Peak Reduction Certificates for the following types of battery activities:
- New battery installation
- Connecting a battery to a VPP
Customers may be eligible to claim both rebates.
New Battery Installation - Eligibility PRC-BESS1
New Battery Installations must meet the following criteria to be eligible to claim the rebate:
- Residential or Small Business site
- Have an existing solar PV system or are having solar PV installed at the same time as the battery
- No existing battery installed at the property (address is determined by the electricity National Meter Identifier (NMI)
- The total battery system capacity cannot be 28kWh or more (multiple batteries can be installed at the same time)
- Each battery model must:
- Be listed on the Clean Energy Councils approved battery list.
- Have a capacity of more than 2kWh and less than 28kWh
- Be capable of being connected to a VPP
- Meet specific warranty conditions
Installation Requirements:
- Installer must be SAA Battery accredited at the time of install
- Installer must have completed Trade In Greens PDRS BESS Training.
- Install must be on or after 1 November 2024
- Install must comply with AS/NZS 5159
- Install must be registered on DER register
Property requirements:
- No existing or pre-existing battery installed
- Property must be connected to the grid in NSW and be a residential or small business.
- Battery must be connected to a PV system on the same NMI
- The customer must pay a minimum of $200.00 non-refundable.
Connect a Battery to a VPP - Eligibility PRC -BESS2
- Batteries connected to a VPP must meet the following criteria to be eligible to claim the rebate:
- Be a residential site
- Have solar PV installed at the same site (NMI)
- No Life Support Equipment in use at the site
- The total battery system capacity cannot be 28kWh or more
- Each battery model must:
- Be listed on the Clean Energy Councils approved battery list when connected to the VPP.
- Have a capacity of more than 2kWh and less than 28kWh
- Have a minimum 6 years remaining on the warranty
- Meet specific warranty conditions
How Much is the Battery Incentive?
Eligible customers may receive between $300 and $4000 as a discount on the upfront battery cost, plus an additional $50 to $600 as a rebate for participating in a Virtual Power Plant (VPP). These incentive amounts can fluctuate based on the trading prices of Peak Reduction Certificates (PRCs).
Keep in mind that PRC values are influenced by market conditions and can vary. Similar to stock prices, they are driven by supply and demand principles. As more people utilize this incentive, the value may decrease over time, so acting sooner can help you secure the highest possible incentive.
How Do I Claim the Battery Installation Incentive?
You don’t have to do anything directly to claim the NSW battery incentive!
The incentive is applied as a discount on your battery system and installation, similar to how Small-scale Technology Certificates (STCs) work for solar systems. Instead of a direct payment to you, the incentive is built into the overall cost reduction, simplifying the process.
As a solar retailer, Solar Plant takes care of everything for you. We factor the incentive into your initial quote and manage the claim process afterward, ensuring you enjoy the savings without any additional steps. This makes the process seamless and hassle-free for you.
