In 2025 the NSW battery incentive was folded into the federal Cheaper Home Batteries Program. That means NSW customers now get their main battery discount through STCs, the same as everyone else, and NSW’s own scheme carries an additional incentive when the battery is connected to a virtual power plant. That incentive is paid in PRCs.
What a PRC is
A Peak Reduction Certificate is created under the Peak Demand Reduction Scheme for an activity that reduces demand at the times the grid is under most pressure. A VPP-connected battery can do that by discharging when needed. PRCs are traded like other certificates, and accredited providers handle their creation.
How the pieces fit
| Layer | What it gives you | Notes |
|---|---|---|
| Federal STCs | Upfront discount on the battery | 6.8 per kWh in 2026, 5.7 from 2027 |
| NSW PDRS incentive | PRCs for VPP connection | Rules set by the NSW scheme |
| VPP arrangement | Ongoing payments or credits | Set by the VPP provider |
Federal eligibility needs a CEC approved battery of 5 to 100 kWh usable, VPP capability, an accredited installer and one per property, with up to 50 kWh counted.
What to check
Because we do not state PRC amounts or factors here, installers should confirm them on the official NSW scheme page and in the activity rules, and confirm which providers are accredited to create the certificates. Details change over time.
Cash flow
The STC component is the larger and faster one for most installers, and it needs settlement discipline; read our guide on battery rebate cash flow. PRCs add paperwork but also potential value.
What this means for installers
If you work in NSW, ask your trader or provider whether they handle both STCs and PRCs, and how each is settled. Energy Merchants supports battery STCs; see the battery STC pillar, the pricing page and how it works.
For homeowners reading this, the practical point is that your main saving is the federal STC discount on the invoice, while any VPP related benefit may arrive later or through your retailer. Ask your installer to explain which parts of the offer are certain and which depend on a program or provider.