New South Wales runs two certificate schemes side by side. The Energy Savings Scheme creates ESCs for saving energy, and the Peak Demand Reduction Scheme creates PRCs for reducing demand at peak times. Batteries fit the second: a battery that can shift or reduce load at peak times helps the grid.
What PDRS does for batteries
Under the PDRS, eligible battery installations connected to a demand response or VPP arrangement can create peak reduction certificates. The NSW battery incentive that previously supported home batteries moved into the federal Cheaper Home Batteries Program in 2025, and the PDRS now carries an incentive for connecting the battery to a VPP. We do not quote certificate counts or dollar values here, because activity rules and factors change; use the official NSW program page as your source.
Stacking with federal STCs
The federal program gives STCs for approved batteries of 5 to 100 kWh usable, with up to 50 kWh counted, at 6.8 per kWh at the time of writing, 5.7 from 1 January 2027 and 5.2 from 1 July 2027. The PDRS incentive is separate, so a NSW battery can potentially earn both, provided the installation meets each scheme’s rules. VPP capability is a condition of the federal program, which lines up with the PDRS logic.
Practical traps
- Activity eligibility. Not every battery or VPP arrangement qualifies.
- Evidence. The PDRS has its own documentation requirements, beyond the photos needed for STCs.
- Who creates the certificates. PRCs are created through accredited providers, so check who handles it.
- Timing. Rules and rates change with scheme reviews.
What this means for installers
If you install batteries in NSW, make sure your quoting and paperwork cover both schemes. Our battery STC pillar covers the federal side, the installer guide explains the program, and the pricing page lists current rates. For NSW specifics, see the NSW incentive guide.
If you are new to the scheme, it helps to talk to an accredited provider before you quote, because the answer to who creates the PRCs and how the value is shared affects the customer’s price. Agree the arrangement in writing at the start so there are no surprises when the certificates are created.