NSW PDRS Expands Battery Incentives
From 1 September 2026, three new activities — BESS3, BESS4 & BESS5 — significantly expand battery incentives across New South Wales. Apartments, commercial premises and large industrial facilities can now access incentives that were previously unavailable.
WHAT'S NEW
Three new activities,
oneone bigger opportunity
The new activities extend the existing PDRS battery incentives beyond traditional residential houses. Together with the Federal Battery STC program, eligible systems may now receive substantial combined incentives where both schemes apply.
Whether you're a property developer, strata manager, commercial energy user or solar retailer, these activities create opportunities to reduce installation costs while supporting a more reliable electricity network.
THE ACTIVITIES
BESS3 · BESS4 · BESS5
BESS3Apartment Batteries
Shared battery systems in residential apartment buildings (Class 2, or a part classified as Class 2). The building must generally contain at least four residential dwellings.
BESS4Commercial Batteries
Battery installations for small and medium businesses. Indoor and outdoor installs allowed (subject to safety), and capacity may be added to an existing system.
BESS5Large C&I Batteries
Large-scale behind-the-meter systems from 200 kWh up to 30 MWh (capped at 10 MWh) — bridging the gap between commercial batteries and utility-scale storage.
AT A GLANCE
BESS3 vs BESS4 vs BESS5
Compare the three new PDRS battery activities side by side to find the right fit for your project.
| BESS3Apartments | BESS4Commercial | BESS5Large C&I | |
|---|---|---|---|
| Best for | Residential apartments | Small & medium business | Industrial & large sites |
| Building type | Class 2, 4+ dwellings | Non-residential, not a data center | Commercial / industrial |
| Battery capacity | Shared apartment system | Small–medium scale | 200 kWh – 30 MWh (cap 10 MWh) |
| Install location | Outdoor | Indoor & outdoor | Indoor & outdoor |
| Min co-payment | $1,000 (ex GST) | $5,000 (ex GST) | Under consultation |
| Warranty | 10 yrs · 70% retained | 10 yrs · 70% retained | Per scheme rules |
| Start date | 1 Sep 2026 | 1 Sep 2026 | 1 Sep 2026 |
Indicative summary only. Final eligibility and calculation methods are subject to the published PDRS rules and NSW Government requirements.
HIGHER INCENTIVES
Install solar + battery together
Both BESS3 and BESS4 provide higher incentive rates when the battery is installed together with new solar panels. Planning both systems together can significantly improve the total incentive available.
Higher incentive rates apply when the battery is installed together with new solar panels.
Within 90 days
The battery must be installed within 90 days of the new solar panels being installed to qualify for the higher calculation.
1:4 solar ratio (BESS4)
For BESS4, the new solar PV capacity must be at least one-quarter of the battery's usable capacity.
STACK THE SCHEMES
Stackable with Federal STCs
For eligible battery sizes, installers may also access the Federal Small-scale Technology Certificate (STC) incentive — the Cheaper Home Batteries Program — on top of PDRS.
The largest combined incentives are generally achieved with batteries up to 100 kWh nominal capacity (CEC), while larger batteries continue to receive PDRS incentives only.
BEFORE YOU PLAN
Important eligibility requirements
Ensure the system satisfies all PDRS requirements. Meeting every condition is essential before certificates can be created.
Installed in NSW
The battery must be installed within New South Wales.
10-year warranty
Battery and inverter must generally carry a minimum 10-year warranty with at least 70% retained usable capacity after 10 years.
Inverter output
Minimum battery inverter output is 1/6 of the battery's usable capacity (PDRS).
VPP-capable
The battery must be VPP-capable where required under the scheme.
Minimum co-payments
BESS3: $1,000 · BESS4: $5,000 (GST not inclusive).
Equipment & install rules
The battery must meet all PDRS equipment and installation requirements.