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NSW ESS and PDRS (ESCs and PRCs)

How are PRCs created under the NSW Peak Demand Reduction Scheme?

Short answer

An Accredited Certificate Provider creates PRCs when an eligible activity reduces demand during the peak window of 2.30pm to 8.30pm AEST from 1 November to 31 March. A PRC represents 0.1 kW of available peak reduction, calculated over 10 years. Activities include efficient air conditioners, pool pumps and battery VPP connection.

Written and checked by the Energy Merchants desk · Reviewed 3 October 2026 · For installers

The Peak Demand Reduction Scheme (PDRS) sits beside the Energy Savings Scheme in NSW but targets a different problem: peak demand on hot summer evenings rather than total energy saved.

The peak window

PRCs measure demand reduction between 2.30pm and 8.30pm AEST, from 1 November to 31 March. A PRC recognises 0.1 kW of available peak demand reduction capacity, so the unit is smaller than an ESC. See the PRC glossary entry and the PDRS definition.

How PRCs are created

  1. An eligible activity is carried out in NSW.
  2. An Accredited Certificate Provider (ACP) assesses it under the PDRS method.
  3. The ACP creates PRCs, which are registered and sold.

PRCs are calculated over a 10-year period. The scheme’s worked example: if an activity creates capacity to reduce demand by an average 0.2 kW in each of the six peak hours, it can create 0.2 x 6 x 10 = 12 PRCs.

The activities

Activity What it is
HVAC2 Installing a new high efficiency air conditioner or replacing an existing one
SYS2 Installing a new high efficiency pool pump or replacing one
BESS1 Installing a behind-the-meter battery; suspended from 1 July 2025
BESS2 Onboarding a behind-the-meter battery with a Demand Response Aggregator (VPP connection)

More activities and method guides exist; the NSW Energy Sustainability Schemes site publishes the current PDRS Method Guide. Because the NSW home battery incentive moved into the federal Cheaper Home Batteries Program in 2025, the PDRS incentive that remains for batteries is the VPP connection (BESS2). See NSW PDRS and batteries and the NSW VPP incentive.

What PRCs are worth

PRCs have been reported at about $3 in 2026. A 12-PRC activity is therefore worth in the order of $36 at that price, so PRC income per job is modest and the scheme works best on volume. See the PRC price page. Rates vary by trader.

From the desk: a PRC-funded discount is small next to a federal battery STC discount. Do not stack expectations from old NSW battery incentives onto a new quote.

Why the unit is small

Because a PRC is 0.1 kW of peak reduction, a single activity creates a dozen or more PRCs, and the price per PRC is a few dollars. That is why the PDRS is typically a volume game for ACPs rather than a large per-job incentive. Customers should see it as a modest contribution, with the larger savings coming from lower running costs.

What this means for installers

Work with an ACP that knows the current method and evidence rules, and confirm how the rate is set. For federal certificates on solar, batteries and heat pumps, Energy Merchants publishes a daily rate on pricing with zero fees; see battery STCs, how it works and the NSW ESCs and PDRS hub. For ESC activities, read how ESCs are created.

Follow-up questions

People also ask

How many PRCs does an activity create?
Example: an activity that reduces demand by an average of 0.2 kW across each of the six peak hours creates 12 PRCs (0.2 x 6 x 10).
Is the NSW battery incentive still under PDRS?
BESS1 was suspended from 1 July 2025 as batteries moved into the federal program. A PDRS incentive for VPP connection (BESS2) continues, at the time of writing.
What is the PRC price?
Reported at about $3 around September 2026. Check a trader's current rate.

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