PRC (Peak Reduction Certificate)

Written and checked by the Energy Merchants desk · Reviewed 2 October 2026

PRC stands for Peak Reduction Certificate. It is the certificate issued under the Peak Demand Reduction Scheme (PDRS) in New South Wales. Where an Energy Savings Certificate rewards using less energy, a PRC rewards using less power at the moments the grid is under most strain, typically late afternoon and evening.

A PRC is measured in kilowatts of peak demand reduction capacity, not tonnes of carbon.

In practice

PRCs are the NSW scheme’s way of rewarding things that cut peak demand: efficient air conditioning, certain appliances, and batteries that are connected to a virtual power plant and can be called on at peak times. After the NSW battery incentive moved into the federal Cheaper Home Batteries Program in 2025, NSW kept a PDRS incentive for connecting a battery to a VPP. That means a NSW battery job can create federal STCs for the battery and a PRC-linked incentive for the VPP connection.

For an installer, this means two pieces of paperwork on one battery. Keep them straight. The STC claim needs the battery submission guide evidence. The PDRS side needs proof of the VPP connection and the participating provider’s requirements. Always check the scheme’s official page for current activity rules, because incentives and eligibility have been updated more than once.

Common confusion

A PRC is not an ESC and not an STC. ESCs measure energy saved (tonnes of CO2-e). STCs are federal and measure megawatt-hours. PRCs measure kilowatts of peak reduction.

Customers also confuse PRCs with a VPP sign-up bonus. They are different things: a PRC is a regulated certificate, while a retailer or VPP provider’s bonus is a commercial offer.

For the federal battery process see battery STCs, and for background on other terms use the certificate trading glossary.