What is BESS?
A Battery Energy Storage System (BESS) stores energy to offset a property's load or discharge back to the grid when demand peaks. Several national and state schemes now pay incentives for installing one.
The national Cheaper Home Batteries Program launched in 2025 to cut the cost of new battery installs. In 2026, NSW added a set of new BESS incentives under the Peak Demand Reduction Scheme (PDRS), covering residential, commercial and industrial systems. Home and small business batteries connected to an eligible virtual power plant (VPP) in SA and NSW can also claim a rebate.
NSW PDRS BESS5: commercial and industrial batteries
For large commercial and industrial sites installing big BESS assets to support heavy energy loads. The PDRS pays the incentive as Peak Reduction Certificates (PRCs).
[Estimate PRC incentive]
NSW PDRS BESS4: small and medium business batteries
For small and medium businesses installing battery systems up to 200kWh. New under the PDRS from September 2026.
CEC approved BESS only
[Estimate PRC incentive]
(Based on electricity consumption)
NSW PDRS BESS3: apartment batteries
For apartment buildings with four or more dwellings installing a shared battery. The battery reduces load on the grid at peak times; the building claims the incentive.
NSW PDRS BESS2: connect a battery to a VPP
A one-off incentive for contracting an existing or new battery to an approved Virtual Power Plant (VPP). The VPP draws on the battery during peak summer events to support the grid.
NSW PDRS BESS1: residential and small business batteries
An incentive usually applied at point of sale to reduce hardware and installation costs for new residential and small business battery systems. Relaunched 1 July 2026.
National battery STCs: Cheaper Home Batteries Program
A point-of-sale incentive that reduces hardware and installation costs for new residential and small business battery systems, paid as Small-scale Technology Certificates (STCs).
SA REPS VPP1: connect a battery to a VPP
Under South Australia's Retailer Energy Productivity Scheme (REPS), consumers who connect their battery to an eligible VPP may claim an incentive. Targets and quotas for 2026 are low, so availability is limited.
Estimate your PRC and STC incentives
Use the calculators to estimate certificate value for your project.
The estimates are not quotes. PRC values assume a spot price of $2.50 excluding GST, processing, registration and certificate fees; a firmness factor of 1; a fixed 15-year equipment lifetime; and a standard 6-hour summer peak demand reduction window. STC values assume $37.00-$38.00 per certificate at 1,000 STCs processed per month; contact us for a quote if you expect under 1,000 or over 5,000 per month. Spot prices fluctuate and calculations change as regulations update. Confirm final values with your account manager.
PRC payments are made after the Electric Future audit passes, for batteries installed 1 May 2026 to 31 December 2026.
How C&I onboarding works
Enquire. Submit an enquiry. A dedicated account manager arranges a call.
Onboard. Complete a short online form.
Feasibility and quoting. Your account manager establishes project feasibility and financial estimates.
Training. In-person, online or self-paced training so your team understands the program requirements.
Installation support. An engineering project manager assists before, during and after installation to reduce certificate-creation risk.
A PRC is the certificate the NSW Peak Demand Reduction Scheme creates when a project reduces demand during the peak window. One PRC equals 0.1kWh saved during that window. The peak window is 2:30pm to 8:30pm AEDT, 1 November to 31 March.
It depends on the activity. BESS1 and the national STCs are usually applied at point of sale, so the discount comes off the invoice. The newer PDRS activities (BESS3, BESS4, BESS5) create certificates after installation and audit, so the payment arrives once the audit passes.
Often, yes. Each scheme section above lists what it stacks with. BESS3 and BESS4 stack with STCs for batteries under 100kWh. BESS5 stacks with LGCs and REGOs. BESS2 stacks with STCs and BESS1 PRCs. A single C&I project can generate LGCs, STCs, ACCUs and PRCs at once. Your account manager confirms the combination for your project.
Yes for BESS1, BESS2, BESS3, BESS4 and the national STCs. Check the Clean Energy Council approved products list before you quote. BESS5 eligibility is confirmed case by case.
Solar is required for BESS1 and the national STCs. It is optional for BESS3, BESS4 and BESS5, and not required for BESS2.
The ranges differ by activity: 2-28kWh for BESS1, 2-50kWh for BESS2, 20-200kWh for BESS3 and BESS4, 200kWh-30MWh for BESS5, and 5-100kWh for the national STCs. The claimable amount is sometimes lower than the eligible range, so check the claim row in each table.
A Virtual Power Plant is a network of batteries an operator can call on together to support the grid at peak times. BESS2 in NSW and VPP1 in South Australia both pay an incentive for connecting an eligible battery to one.
Certificate prices move with the market, so the estimators use an assumed spot price rather than a fixed value. The calculators currently assume $2.50 per PRC and $37.00-$38.00 per STC. Use them for planning, not for quoting.
Broadly: BESS1 and BESS2 cover homes and small businesses, BESS3 covers apartment buildings with four or more dwellings, BESS4 covers small and medium businesses, and BESS5 covers large commercial and industrial sites. If your project sits near a boundary, talk to an account manager before you commit to a system size.
We confirm the project meets the scheme rules, run the audit, create the certificates and sell them. You get one account manager from enquiry through to payment, plus an engineering project manager during installation.
Payment follows a passed audit. Timing depends on the activity and how quickly the compliance evidence comes back from site.