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
- An eligible activity is carried out in NSW.
- An Accredited Certificate Provider (ACP) assesses it under the PDRS method.
- 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.
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.