Victoria
New South Wales
South Australia
QueenslandWhat is the NSW Battery Incentive?
On Friday 24 May, the NSW Government announced the new battery incentive program for residential and small business batteries installed from 1 November 2024.
The incentive sits under the existing Peak Demand Reduction Scheme (PDRS), a NSW Government program that sits parallel to the NSW Energy Savings Scheme (ESS). You may have heard of certificate incentives for lighting, heat pumps or other technologies under the ESS since the program’s inception in 2009. The PDRS was launched in 2022 and the incentive is based on peak demand reduction during the peak summer periods, while the ESS is built around energy savings.
The programs allow units called ‘Certificates’ to be created based on the calculated impact of the upgrade. For the PDRS, each 0.1kW of capacity calculated during the peak window to be saved, shifted or made available is eligible to create 1 Peak Reduction Certificate (PRC) [pronounced ‘Perk’].
Each certificate is traded for a financial value on the open market. The purchasing party is most often Energy Retailers who must acquire a certain volume of certificates each year to fulfil a liability.
This is an almost identical process to creating STCs. The primary differences between the two programs are that Accredited Certificate Providers (ACPs) are required to have a proven track record to be allowed to create large volumes of PRCs, and must undergo frequent external audits to maintain their accreditation. The regulatory requirements for ACPs are far above what the Clean Energy Regulator requires for an STC trader. This is because ACPs are authorised to register certificates and are audited based on both project compliance and internal processes, whereas the CER audits each individual project and register Small-scale Technology Certificates (STCs). On a project level, the set of evidence requirements differs though the licencing for installers remains identical.
The PDRS will introduce Residential Battery installations as an eligible technology from 1 November 2024. For eligible installations, ACPs such as Ecovantage can create PRCs where a battery is installed at a home or small business in three circumstances:
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- For a new battery installation
- For a new battery installation being connected to a VPP
- For an existing battery being connected to a VPP
Eligibility Criteria
New Battery Installations meeting the following criteria are eligible to claim the PRC incentive:
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- 2-28kWh capacity
- Battery is on the CEC registered products list
- In a residential or business setting
- Must have an existing solar system, or have solar installed concurrently with the battery
- 10-year minimum warranty (guaranteeing retention of a minimum of 70% of useable capacity)
- Registered on the DER register
- A smoke alarm must be installed near the battery
- The customer has paid a minimum of $200
A second lower-value incentive is available where:
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- A new battery compliant with the above criteria is connected to a VPP
- An existing battery compliant with the above is connected to a VPP, providing a minimum of 6 years are left on the product warranty
How many PRCs are created?
The following tables show the PRC values created and estimated incentives for some of the most common batteries, plus the additional values for batteries connected to a VPP.
Our PRC Battery Incentive Calculator above shows the PRCs created and incentive available for any home battery based on their useable capacity.
New Battery Install Incentive |
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| Usable Capacity (kWh) | PRCs Created | Estimated Incentive |
| 4.9 | 391 | $545 |
| 9.8 | 782 | $1,292 |
| 14.7 | 1173 | $2,039 |
| 19.6 | 1564 | $2,786 |
VPP Connection Incentive |
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| Usable Capacity (kWh) | PRCs Created | Estimated Incentive |
| 4.9 | 59 | $22 |
| 9.8 | 118 | $135 |
| 14.7 | 178 | $249 |
| 19.6 | 237 | $362 |
Incentives Calculator, Battery Eligibility, and all of your Questions, Answered.
Everything you need to know about the NSW PDRS battery incentives, in one place.
NSW Battery IncentivesThe Process.
At Ecovantage we have been creating certificates Australia-wide for over 17 years. Our job is to make creating and monetising certificates simple, pain-free and low-risk.
The following process outlines the steps to create PRCs, which can be completed concurrently with creating STCs on a single site. Both STCs and PRCs can be claimed concurrently when you’re installing a solar and battery system if your ACP is accredited under both programs, such as Ecovantage.
Steps to claiming a PRC Incentive.
- Quote the customer and detail the PRC incentive that they will receive
- Collect a series of photo evidence both before and after the installation
- Collect a signature from both the customer and installer on the day of installation
- Submit the project to Ecovantage
- Your installation is checked and ‘Audit Passed’ by Ecovantage
- Your PRC and/or STC incentive is paid
How Does the PRC Market Work?
The PRC market works similarly to the STC market, though PRCs are lower-value certificates created in higher volumes.
Ecovantage offers multiple pricing structures to reduce the risk associated with market volatility so that you can continue doing what you do best, while getting paid on time and hassle-free.
The market has historically seen a broad spread having had a low of $1.00 and a high of $2.30 in the past 12-month period, and is subject to faster percentage fluctuations than other certificate markets. Each Friday we release a market review that delves into the movements of each certificate market and the impacting forces. To further assist, our partners have a dedicated account manager to keep them up to date on market movements if this is relevant to your chosen pricing structure. To get our weekly market updates you can register below.
Receive weekly market updates and up-to-date spot prices delivered to your inbox every Friday.
Why is the Start Date Delayed Until November?
The launch of a new technology under a certificate scheme is structured differently to the launch of a grant or fixed-price incentive, such as the Solar Victoria rebate. With routine grants and fixed-price incentives there is often a limited pool of funding and it is subject to government approval for each site. However with certificate schemes, as long as the installation meets the criteria it can create a certificate incentive. The evidence needed to verify the installation is submitted to an Accredited Provider such as Ecovantage, who handles the policy and audit requirements on your behalf. A three to six-month period between policy release and the program starting is routine in certificate schemes. This allows Accredited Providers to ensure all systems and processes are ready and to allow time for the market to prepare to comply with the program’s requirements.
What Other Installations Can Claim PRCs?
If you’re working in a residential or small commercial environment and upgrade the following technologies, you may be able to create an additional PRC incentive for each installation:
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- Installation of a new high-efficiency pool pump
- Replace an existing refrigerated cabinet with a new high-efficiency refrigerated cabinet
- Replace a boiler or water heater with a heat pump over 425L
- Install a new high-efficiency air conditioner
Having assisted our partners to create over 11 million certificates in NSW alone, we’re here to ensure your certificate creation process is a simple one.
Learn more about the PDRS program.
How Ecovantage Can Help.
As one of the most experienced Accredited Certificate Providers under the NSW Programs, we are well-equipped to support installation companies in leveraging new and existing activities in the Peak Demand Reduction Scheme.
To ensure your business is ready to provide the incentives available in the Battery program, get in touch with us today.
