NSW Business Battery Incentives: How the PDRS Can Cut the Cost of a Commercial Battery
Since 7 September 2026, NSW businesses can get an upfront discount on commercial batteries through the state’s Peak Demand Reduction Scheme (PDRS). Paired with the expanded federal solar rebate, it’s now far cheaper to add storage to a business, school, club or farm.
The two new battery activities
- BESS4 – small and medium business: batteries from just over 20kWh up to 200kWh usable capacity.
- BESS5 – commercial and industrial: batteries from 200kWh up to 30MWh, which must also meet the UL9540A fire-safety test standard.
Both apply to non-residential sites, require CEC-listed equipment and must be installed by an accredited installer to AS/NZS 5139.
How the incentive is worked out
The scheme creates Peak Reduction Certificates (PRCs) based on how much demand your battery can shift out of the evening peak. Those certificates are sold and the value is passed on as a discount. Because PRC prices move with the market, the dollar value isn’t fixed – but published examples show discounts in the range of roughly 25–35% of project cost, and the incentive is higher when new solar is installed alongside the battery.
Why it matters
- Store cheap daytime solar and use it in the evening instead of buying from the grid.
- Reduce demand charges by trimming your site’s highest peaks (see our peak shaving article).
- Keep critical loads running during outages with backup-capable systems.
How MBR can help
We design and install solar and battery systems in-house, with SAA-accredited solar technicians and a commercial electrical team that handles the switchboard, protection and network side. We’ll look at your interval data, size the battery to your real load and show you the incentive in the quote.
Ask about a battery for your business →
Incentive values depend on certificate prices and your site; we’ll confirm eligibility and current values before you commit.
