The Peak Demand Reduction Scheme (PDRS) pays for things that lower demand on the NSW grid at the times it is under most strain. The list of paid activities lives in a document called the Method Guide, and it changes more often than most installers expect. The honest answer to “what is on the list” is therefore: the families below, with the exact eligibility in whichever Method Guide version applies on the day you install.
This page is a map, not a replacement for the guide. It will help you work out which families touch your trade, and what to check before you promise a customer anything.
What the scheme actually pays for
The PDRS creates Peak Reduction Certificates (PRCs). Each represents a measured or deemed reduction in peak demand. Electricity retailers have an obligation under the scheme, and they buy PRCs to meet it. IPART administers and regulates the PDRS and accredits the businesses allowed to create certificates. Those businesses are Accredited Certificate Providers, or ACPs, and our guide on becoming an ACP covers that step.
The activities fall into a few families:
| Family | What it covers | Why it matters to installers |
|---|---|---|
| Batteries and storage | Incentives linked to batteries and their connection to a virtual power plant (VPP) | Sits next to the federal battery program |
| Air conditioning | Installing or replacing efficient air conditioners | Common in residential electrical work |
| Hot water | Heat pump water heaters and related equipment | Overlaps with federal hot water STCs and the NSW ESS |
| Pool pumps | Efficient or variable-speed pool pumps | Pool and electrical trades |
| Demand response | Connecting equipment so load can be shifted on request | Often tied to a VPP or aggregator |
Treat that table as orientation. Which exact products qualify, what the installer must hold (electrical licence, specific accreditation), and how many PRCs a job creates are defined in the Method Guide and the accepted products list. Do not rely on a blog, including this one, for the product-level detail.
The battery position in mid-2026
Battery activity moved a lot. At the time of writing, the original behind-the-meter battery activity (BESS1) has been suspended since 1 July 2025, and the NSW battery incentive moved into the federal Cheaper Home Batteries Program in 2025, with a PDRS incentive for connecting to a VPP. A NSW commercial battery incentive was reported as starting on 1 September 2026. Treat the last as reported and verify against the guide.
For a homeowner battery the stack is usually this. The federal program gives STCs for the battery itself (a factor of 6.8 at the time of writing, tiered by size). The PDRS adds PRCs where the battery is connected to a VPP under the scheme’s rules. Our piece on stacking federal and state battery rebates works through it, and the answer page on the NSW peak demand reduction scheme for batteries is the short form.
How a PRC activity gets from job to certificate
Even when the product list is long, the path is the same.
- Check the activity is current and open for your installation date.
- Check the product against the accepted products list, or the VPP/aggregator’s list for connection activities.
- Hold the right licence or accreditation for the work. The guide states it per activity.
- Capture the evidence the method requires: photos, serials, customer details, consent, and any proof of connection or commissioning.
- Work under an ACP, or be one. Only an ACP can create certificates.
- The ACP creates and registers the PRCs, and sells them to a buyer.
The sale step is where the cash arrives. Our guide on how installers get paid for ESCs and PRCs shows the usual models.
Worked example: why version control matters
Suppose a job creates 40 PRCs and the reported market is about $3 per PRC. That is roughly $120 of certificate value. Small numbers like these are exactly why evidence mistakes hurt: one disallowed job costs more in admin than it ever earned. If the method changed in the Method Guide that applies from 3 September 2026 and your installer used last quarter’s checklist, the whole batch can be affected. A PRC price near $3 is reported and moves; do not build a margin on it without checking.
Compare that with a federal battery job: 95 STCs for a 14 kWh battery at 6.8 is about $3,610 at $38. Check the figures in the battery STC calculator. The scale difference explains why many crews treat PRCs as an add-on to the main sale, not the main sale.
Common mistakes with PDRS jobs
Most disputes over PRC claims trace back to a handful of avoidable errors.
Using an old version of the method. The Method Guide is revised several times a year, and a new version applies to installations on or after a stated date. An installer who works from a saved PDF in February and installs in September is working to the wrong rules. IPART has published a version applying to implementations on or after 3 September 2026, so jobs either side of that date can sit under different requirements.
Installing a product that is not accepted. For many activities the product has to be on an accepted products list. A model that is on the federal Clean Energy Council list is not automatically on the NSW list, and the reverse is also true. Check both when a job aims to create both kinds of certificate.
Missing consent and customer details. The scheme needs the customer’s agreement to the certificates being created, and basic details recorded. A job done well but without a signed record is a job the ACP may refuse to register.
Assuming a suspended activity is back. When BESS1 was suspended from 1 July 2025, installers who kept quoting the old incentive had to absorb the difference. A suspended activity is not a pause you can wait out on the customer’s behalf.
How PRCs differ from federal certificates
It is worth keeping the two systems straight in your head, because customers and salespeople blur them.
| Federal STCs | NSW PRCs | |
|---|---|---|
| Regulator | Clean Energy Regulator | IPART |
| Created by | Registered agent or the installer’s agent | Accredited Certificate Provider |
| Typical price | about $38 to $40 at the time of writing | about $3, reported |
| Unit | One certificate per MWh deemed | One certificate per defined peak reduction |
The price gap is the practical point. A PRC is a small top-up; an STC is a major part of the job’s economics. That is also why accredited NSW providers tend to batch and standardise their processes, because margins per certificate are thin.
Short answers on this topic: nsw battery incentive prcs.
What to do next
- Bookmark the Method Guide and the accepted products list on the NSW energy sustainability schemes site, and recheck both at the start of each quarter.
- Pick one or two families that fit your trade, rather than chasing every activity.
- Decide your model: become an ACP, or work under one. Compare in the ESS explained for installers.
- Pair PRCs with federal certificates on battery and hot water jobs, so one visit generates every certificate it can.
- Talk to a buyer early. Our ESC and PRC desk page explains how we handle NSW certificates, and how it works shows the flow end to end.
For the federal side of battery work, see the battery STC pillar and the Cheaper Home Batteries installer guide.