The Peak Demand Reduction Scheme (PDRS) encourages households and businesses to implement activities that reduce demand for electricity during peak times. It does this by providing incentives to Accredited Certificate Providers (ACPs). ACPs can offer a discount on activities to households and businesses in return for the right to create certificates from the activity, which the ACP can sell. Find out more about the PDRS and how it works. 

New battery activities under the PDRS will start on 1 November:

  • install a new battery for homes and small businesses with existing solar
  • sign a battery up to a 3-year demand response contract in a Virtual Power Plant (or VPP).

This page provides information: 

  • for households and small businesses interested in incentives for battery activities
  • for businesses interested in becoming accredited for battery activities under the PDRS.

We have published our battery activity application pack and are now accepting applications for accreditation, which should be lodged in TESSA.

Please check in regularly – we’ll update this page as more information becomes available. You can also sign up for PDRS updates.

Changes to the PDRS Rule that commence 13 September 2024:

  • clarify that multiple batteries that are installed as a system behind the same National Metering Identifier are eligible under the scheme
  • lower warranty requirements for battery activities (installation and VPPs) that occur before 1 April 2026.
  • The start date of battery activities has not changed and continues to be 1 November 2024. 

Refer to our PDRS Quick Reference Guide for more information.

More information
For consumers

From 1 November 2024 households and small businesses with rooftop solar will be able to take advantage of incentives to install residential battery storage and/or connect to a VPP under the PDRS. 

You’ll need to work with a business accredited for battery activities under the PDRS, or with an installer or VPP operator (like some energy retailers and battery manufacturers) that works with an ACP. (see Installing batteries section below).

For more information about accessing PDRS incentives for batteries and how a VPP works see the NSW Climate and Energy Action website, which will be regularly updated.

The Australian Government’s Solar consumer guide and Your Home website also provides useful consumer information about batteries. 

Installing batteries

To be eligible to create certificates under the PDRS, the installation of batteries must meet requirements in the PDRS Rule. These requirements are in the PDRS Rule, under clause 8 and in Activity Definition BESS1.

For BESS1 the battery will also need to be installed by an installer with Grid-Connected Battery Storage ‘Design and Install’ or ‘Install only’ accreditation by Solar Accreditation Australia. ACPs will need to submit the installer’s accreditation number, along with their installer licence number and type, as part of their Implementation Data when registering certificates. 

Read our PDRS Method Guide for guidance.

Batteries eligible under the PDRS

To be eligible to create certificates under the PDRS, batteries installed under BESS1 or signed up to a VPP under BESS2 must meet requirements in the PDRS Rule. 

They will also need to be listed on the Clean Energy Council’s list of approved batteries (note not all batteries on this list meet PDRS Rule requirements).

New applicants for accreditation

Only ACPs can create peak reduction certificates (PRCs) from PDRS battery activities. 

Becoming an ACP takes time and comes with obligations such as audit and record keeping requirements. If you are an installer (see below) or VPP operator (also known as a demand response aggregator - see our PDRS Method Guide for more information), it may be more appropriate for your business to work with an existing ACP. Visit our Becoming an ACP in the PDRS page to see if becoming an ACP is right for you.

You can find out more about the scheme by watching a recording of our Understanding the PDRS information session and reading the session Q&As.

If you decide to apply for accreditation, you can start getting ready by:

When you are ready to apply, visit our Battery activity application webpage to see our application pack

 

Current ACPs interested in battery activities

We have now updated our guidance and published our battery accreditation application pack. Current PDRS or ESS ACPs can apply for a new accreditation for battery activities through TESSA. The process will be similar to the existing application process for current ACPs (see Preparing your PDRS application). 

You can start getting ready by:

  • watching a recording of our online forum and read our PDRS FAQs to learn more about how you can apply to become accredited for battery activities
  • reviewing PDRS Rule requirements and our PDRS Method Guide
  • updating your systems and processes to meet requirements. 

When you are ready to apply, visit our Battery activity application pack webpage.