NSW’s own battery installation discount, BESS1, was suspended from 1 July 2025 to avoid overlap with the federal program. What replaced it is an incentive for connecting the battery to a VPP, delivered through the Peak Demand Reduction Scheme (PDRS). A NSW commercial battery incentive was also reported from 1 September 2026.
How much is it?
The amount is not fixed. It comes from Peak Reduction Certificates (PRCs), whose price moves (reported at about $3 at the time of writing, which is low), and from the size of the battery. Reported offers in mid-2026 sat at around $40 per kWh of usable capacity, calculated on up to 28 kWh, giving a maximum in the region of $1,000 to $1,100. Treat these as reported, not official figures: the NSW Government’s PDRS page and your provider’s written offer are the authorities.
How VPP participation affects the PDRS incentive
The incentive exists because the battery is connected to an eligible VPP. In practice:
- The battery must be installed and commissioned, and connected to a VPP that is eligible under the scheme.
- The provider or an accredited certificate creator claims the PRCs.
- The value is passed to you, often as a discount on the invoice or as a bill credit.
- The scheme may require you to stay connected for a period.
If you do not connect, there is no incentive. If you leave early, the provider’s contract may require repayment. See VPP contract length.
How it stacks with the federal rebate
The federal rebate pays STCs for installing a qualifying battery, with the factor at 6.8 for May to December 2026. The PDRS incentive is on top, for VPP connection. Because they are separate schemes, a battery can qualify for both, subject to each one’s eligibility terms. For a 13.5 kWh battery, the federal part is about 91 STCs (roughly $3,460 to $3,640); the PDRS part is much smaller. See the stacking explainer and the NSW overview.
What this means for homeowners
Take the offer from the provider in writing, with the amount, the term and any repayment condition. Make sure the battery is on the provider’s compatible list and the CEC list. Use the battery STC calculator for the federal side, and read the pillar page for the program rules.
What this means for installers
The two incentives use different evidence. The STC claim needs the product listing, photos and an assignment form; the PRC claim needs the VPP connection evidence. Keep them in one job file. For the STCs, a complete claim is locked at the rate on /pricing/ and settled in 24 hours for established partners. See /start-trading/ and the battery submission guide.