In NSW, the Peak Demand Reduction Scheme (PDRS) rewards activities that cut demand on the grid at peak times. Air conditioning is one of the biggest peak loads, so efficient units are an eligible activity. The certificates are Peak Reduction Certificates (PRCs).
The activities
Reported activity definitions are HVAC1, for installing a new high-efficiency air conditioner or replacing an existing one, and HVAC2, a commercial variant. Residential split systems are the typical HVAC1 job. The activity lifetime used in the calculation was reported as increased from 10 to 12 years, which increases the PRCs calculated, so an older guide may understate the value. Confirm the current figure in the PDRS Rule and Reference Table.
How the PRCs are worked out
The number of PRCs depends on the unit’s cooling capacity and its efficiency compared with the baseline, the climate zone and the activity lifetime. Larger capacity and better efficiency creates more. The calculation is in the PDRS Method Guide, and the Reference Table lists eligible products and values. We do not quote a certificate count or a dollar figure here, because they change with the Rule and the product list. Use the scheme’s own calculator or your ACP.
Who creates them
An Accredited Certificate Provider (ACP) registers the activity and creates the PRCs. The installer typically supplies evidence: the product model, installation date, photos, the customer’s signed consent and a licence or accreditation record. The ACP then sells the PRCs, and the value goes to the customer as a discount, with the ACP or installer taking a share. See what is an ACP, PRC price and NSW ACP fees and payment timing.
What this means for installers
Before you quote, check four things:
- The model is on the eligible product list for the activity.
- The job type fits: new, replacement or additional.
- The customer’s premises and tariff meet the activity’s conditions.
- Who is the ACP and how will you be paid.
Keep the paperwork tidy from day one. The scheme is audited, and unevidenced certificates are removed from the registry and clawed back from the chain. See NSW ESS audit requirements.
How this differs from Victoria and the federal schemes
Victoria’s air conditioner activity under the Victorian Energy Upgrades creates VEECs, which Energy Merchants buys. The NSW PRC is a different certificate with a different registry. Federal STCs do not apply to air conditioners. See the VEU air conditioning answer for the Victorian side.
For a comparison of the certificate types, see STC vs VEEC vs ESC. Hot water heat pumps are different again: see heat pump hot water STCs for the federal side and NSW heat pump rebates. The ESS equivalent for commercial HVAC is in ESS HVAC upgrade activity.