The Peak Demand Reduction Scheme (PDRS) is a NSW Government initiative to help reduce electricity demand during peak times, like on hot summer days, by encouraging households and organisations to invest in demand reduction solutions.

The scheme provides incentives for accredited businesses to provide your household or small business with a battery at a reduced cost. Participation in the PDRS is voluntary.

It represents 0.1 kilowatts of peak demand reduction capacity averaged over one hour during the peak summer period, which occurs between: 1 November and 31 March.

Eligible scenarios are called activities under the PDRS Scheme.

SASC Method (Store and Shift Capacity sub-method) : BESS1

Install a new behind the meter battery energy storage system, which will commence on 1 November 2024.

Use our NSW Battery Calculator https://www.green-bank.com.au/...

First the battery must appear on the Clean Energy Council (CEC) approved battery list

Clean Energy Council Battery List

and second the Manufacturer Battery warranty must state the following to meet the PDRS scheme’s following criteria to be eligible for PRCs.

• Battery is internet connectable & controllable.
• Usable Battery Capacity greater than 2kWh and less than 28kWh
• Guarantee of at least 70% of usable capacity being retained 10 years from the installation date.
• Define the normal use conditions during the operation of the battery as not being less than:
  • A minimum ambient temperature range of -10 C to 50 C
  • Minimum warranted throughput of Usable Battery Capacity Prior to 1st April 2026 - 2.8 Mwh per Kwh, After 1st April 2026- 3.65 Mwh per Kwh

A behind the meter solar photovoltaic system must be installed at the same NMI that the new battery is being installed.

The following evidence must be collected and uploaded to the Greenbank app.

• a geo-tagged photo of the solar photovoltaic system installed at the site, or
• evidence of the DER Register showing that a solar PV system has been installed at the NMI, or a geo-tagged photo of the switchboard showing that a PV system is installed
• a copy of the warranty for the new or existing inverter’s make and model,
• evidence demonstrating the installation date of any existing inverter

The usable Battery Capacity must greater than 2kWh & less than 28kWh – this information will be on the battery factsheet/warranty.

Batteries with capacity outside this range will not be eligible – for example if installing a battery with 30kWh of usable capacity you cannot so a partial claim of 28kWh

Where a Battery Energy Storage System is comprised of multiple batteries, each individual battery unit must be listed on the CEC’s list of approved batteries, and meet the additional scheme requirements, and the combined Usable Battery Capacity of the battery system must be greater than 2kWh and less than 28kWh.

• They are installed on the same day behind the same NMI, and collectively constitute a system. A system can be comprised of batteries with or without built-in inverters.
• Each individual battery must be listed on the Clean Energy Council’s approved batteries list.
• The total Usable Battery Capacity of all the batteries (as they are listed on the Clean Energy Council’s approved batteries list) must be greater than 2 kWh and less than 28 kWh.
• Each battery must meet the warranty requirements in the Activity Definitions.

For BESS1, a site with an existing battery is still ineligible – the installation of additional capacity at a site with an existing battery is not eligible for certificates.

The installation must be conducted by an installer with an Unrestricted electrical license and Grid-Connected Battery Storage ‘Design and Install’ or ‘Install only’ accreditation by Solar Accreditation Australia (SAA).

They must also complete the Greenbank Installer induction before receiving logins to our portal.

No, PRCs cannot be claimed for batteries that were installed but not commissioned before November 1.

You need to demonstrate that there was no existing battery at the start of the installation after November 1.

• The installer must ensure that the battery site inside a garage or an acceptable non-habitable room has a functioning smoke alarm or request one to be installed, prior to installation of the battery equipment.

• Where the property's existing smoke alarms are interconnected, either wired or wireless, the new smoke alarm shall be interconnected to the existing smoke alarms.

• Where a battery system is installed externally or in an open carport area, installation of a smoke alarm is not a requirement of the Scheme.

PDRS requirement is :

1. Evidence of a smoke alarm installed nearly, and of its compliance with AS3786
2. Geo-tagged photo clearly showing location of the smoke alarm in relation to the installed battery
3. Battery declaration – installer signs off that is complies with AS3786 and was tested by installer and in working order on the implementation date

Restricted Locations

AS/NZS 5139:2019 dictates batteries CANNOT be installed in restricted locations. Restricted locations include:

1. Any restrictions as defined for switchboards (AS/NZS 3000)
2. Within 600mm of any exit or entry
3. Within 600mm of any vertical side of a window, or any building ventilation, opening into a habitable room
4. Within 600mm of any appliance
5. Within 900mm below 2, 3, and 4
6. In ceiling spaces
7. In wall cavities
8. On roofs (except where specifically deemed suitable)
9. Under stairways
10. Under access walkways
11. In an evacuation route or escape route.
12. Within a habitable room

An exit, as mentioned above, includes garage doors. However, according to the ERAC clarification, for all states but NSW, if a person can enter/exit the garage 900mm from the battery, it can be less than 600mm from the garage door. See the ERAC clarification here for more information: https://www.erac.gov.au/wp-con...

With the introduction of new battery rebate programs in Queensland and the ACT this year, and a proposed rebate in NSW expected in November, the safe installation of batteries has become an increasingly important topic. A common concern among installers is determining suitable battery installation locations, particularly regarding what constitutes a habitable room and a restricted location.

The main standards that cover battery installation locations are:

• AS/NZS 5139:2019
• AS/NZS 3000:2018
• AS/NZS 4777 (for inverters)

Although these standards have specific requirements for where batteries can and cannot be placed, it’s important to use common sense when applying these rules. The main goal is to install batteries in safe locations so that in the case of a fire or explosion, it is unlikely that people will be near the battery and, if they are, they can exit the room safely.

Habitable Rooms

A habitable room is defined as a room associated with a domestic or residential electrical installation used for normal living activities and includes:

1. Bedroom
2. Living room
3. Lounge room
4. Music room
5. Television room
6. Kitchen
7. Dining room
8. Sewing room
9. Study
10. Playroom
11. Family room
12. Home theatre
13. Sunroom

Note that a garage that is used as lounge room or workspace may also be considered a habitable room. We recommend avoiding installing batteries where the homeowner might spend a considerable amount of time.

Additionally, any manufacturer clearance zones need to be maintained for batteries, inverters, and switchboards. These can vary, and you must check the manufacturer’s documentations, but a general rule of thumb is often 200-300mm on all sides of the equipment.

So, considering all of these restrictions, where can a battery be installed? The best options are outside of habitable rooms if there is a suitably non-combustible material (see below) between the battery and the habitable room. Other options include, a garage, laundry, or storage room if the appropriate clearances between windows, doors, and appliances are maintained. Ancillary buildings such as a shed could also be used, but care needs to be made when considering distance from the switchboard, cable sizing/voltage drop and the necessary battery clearance values.

Non-Combustible Barriers

Materials deemed suitably non-combustible based on AS 1530.1:

1. Brick or masonry block
2. Concrete
3. Compressed cement sheeting
4. Ceramic or terracotta tiles

When installing the battery on a wall shared with a habitable room that is made of combustible material (e.g. wood), a non-combustible barrier must be placed between the battery and the wall. This barrier must extend 600mm to each side of the battery and 900mm above the battery even if there is a corner or a roof (so that it wraps around the corner or ceiling). We also recommend adding a non-combustible barrier if the wall is shared with a staircase or main walkway, fore example, near the front door of the house.

For examples of non-combustible barrier installations and other important information, please see the GHD Battery Booster Installation Guide.

Outdoor Installation

Please note, if you are installing a battery outside, care needs to be taken to not install it in direct sunlight. This can either be on the southern wall of the building, beneath eaves, or a fabricated shroud assuming the necessary clearances (900mm from the top) are maintained. Excessive sunlight can bring the battery temperature out of its acceptable range, voiding the warranty and creating a potentially dangerous situation due to thermal runaway of the battery.

No, the PDRS is a certificate trading scheme that does not give direct rebates. Instead, accredited businesses may create certificates for the peak demand reduction that arises from the work they deliver. They can then sell those certificates and may use some of the revenue they get from that sale to offer their customers batteries at a lower price.

Known as BESS1 - installing a behind the meter solar battery at Residential and Small Business sites in New South Wales.

This is a scheme only available to Companies with accredited installers, all accredited installers must complete Greenbank’s induction and code of conduct training for PRDS BESS1 prior to starting any battery installations.