Home battery and rooftop solar installed at a modern NSW home in daylight

NSW Government program, incentives

NSW Peak Demand Reduction Scheme

New battery opportunities for apartments and commercial clients.

The PDRS creates incentives for installing battery storage that can reduce peak demand on the NSW grid. In plain English: eligible sites can receive a certificate-based incentive that reduces the effective cost of a battery, administered through accredited providers, not claimed as a cash rebate from government.

Last reviewed: August 2026 · Program rules can change. Always confirm current settings via the official NSW Government PDRS information.

01Three pathways

Which BESS pathway fits your site?

BESS3

Apartment buildings

Eligible NSW Class 2 apartment buildings with at least four dwellings.

Battery range: Over 20 kWh to 200 kWh usable capacity
Minimum purchaser payment: $1,000
Available from: 1 September 2026
Solar: Battery-only or battery + new/additional solar

Planning requirements and outdoor-installation rules may apply.
Equipment must meet scheme battery requirements.
Installation must be carried out by appropriately accredited installers.
Certificate creation and incentive administration handled as part of delivery.

Check My Strata Building

BESS4

Small & medium commercial sites

Eligible NSW non-residential commercial sites.

Battery range: Over 20 kWh to 200 kWh usable capacity
Minimum purchaser payment: $5,000 excluding GST
Available from: 1 September 2026
Exclusions: Residential buildings and data centres

Eligibility depends on site classification and scheme rules.
Incentive value varies with certificate market prices.
DNSP and network requirements are assessed during design.

Check My Commercial Site

BESS5

Larger commercial & industrial

NSW sites with battery systems greater than 200 kWh.

Battery range: Greater than 200 kWh
Pathway: Consultation-led project assessment
Available from: 1 September 2026

Larger projects are assessed case-by-case with senior commercial engineers.
Network connection, metering and scheme registration are modelled up front.

Discuss a Large Battery Project

Eligible customers may access incentives under the NSW Peak Demand Reduction Scheme. Incentive values vary with certificate market prices, eligibility is subject to assessment, and program rules can change. Esena confirms scheme applicability, DNSP requirements and equipment compliance before any commitment. BESS5-scale projects are assessed through our commercial team.

Find out what PDRS could mean for your site.

Check My Eligibility Call 1300 239 296