NSW Commercial Battery Rebate: Save Up to 50% on Business Battery Storage
The NSW Government is introducing one of Australia’s most significant NSW Commercial Battery Rebate incentives through the Peak Demand Reduction Scheme (PDRS). Eligible businesses can access substantial upfront incentives for installing commercial battery energy storage systems (BESS), making battery investments more affordable than ever.
Depending on the battery size, system design, and prevailing certificate prices, eligible businesses may receive incentives covering approximately 20% to 50% of the installed battery cost.
At EcoBridge Australia, we help businesses understand their eligibility, maximise available incentives, and deliver turnkey commercial solar and battery solutions that reduce energy costs and improve energy security.
What is the NSW Commercial Battery Rebate?
The rebate is delivered through the NSW Government’s Peak Demand Reduction Scheme (PDRS).
Rather than providing a fixed cash grant, the scheme creates Peak Reduction Certificates (PRCs) for eligible battery installations. These certificates have a market value and are generally assigned to an Accredited Certificate Provider, who passes the value on as an upfront discount.
The number of certificates generated depends on several factors, including:
- Battery size
- Battery inverter output
- Distribution network
- Whether new solar PV is installed with the battery
- Current PRC market price
Because certificate prices change over time, the total rebate value also varies.
New Commercial Battery Incentives: BESS4 and BESS5
The NSW Government has introduced two new commercial battery activities under the PDRS.
BESS4 – Small and Medium Businesses
Suitable for batteries with:
- More than 20 kWh usable capacity
- Up to 200 kWh usable capacity
Ideal for:
- Offices
- Retail stores
- Warehouses
- Schools
- Medical centres
- Small manufacturing facilities
BESS5 – Commercial & Industrial Batteries
Suitable for larger battery systems with:
- More than 200 kWh
- Up to 30 MWh usable capacity
Designed for:
- Manufacturing plants
- Industrial facilities
- Distribution centres
- Agricultural operations
- Community energy projects
- Large commercial buildings
Who Can Apply?
To qualify for the NSW commercial battery incentive:
- The installation must be located in New South Wales.
- The site must be commercial, industrial, or community-based.
- Residential properties are not eligible under these activities.
- Data centres are excluded.
- The site must not have previously received a BESS4 or BESS5 incentive.
- Planning approvals must be completed where required
BESS4 Eligibility Requirements
Businesses installing batteries between 20 kWh and 200 kWh must ensure:
- Battery and inverter are listed on approved Clean Energy Council product lists.
- Installation is completed by a Solar Accreditation Australia (SAA) accredited installer.
- Installation complies with AS/NZS 5139.
- Battery duration does not exceed six hours.
- When installed with new solar, the solar array must meet the required sizing ratio.
An additional advantage is that eligible battery systems up to 100 kWh may also qualify for the Federal Cheaper Home Batteries Program where applicable.
BESS5 Eligibility Requirements
For battery systems larger than 200 kWh:
- Battery must pass UL9540A fire safety testing.
- Battery duration must not exceed six hours.
- Solar sizing requirements apply where new solar is installed.
- System capacity must remain below 30 MWh.
These projects are generally suited to medium and large commercial or industrial facilities.
How Much Could Your Business Save?
The incentive depends on certificate creation and current PRC prices, so every project is different.
Typical examples include:
| Example Project | Approximate Project Cost | Estimated Incentive | Potential Saving |
|---|---|---|---|
| 100 kW Solar + 200 kWh Battery | $220,000 | $65,000+ | Around 30% |
| 1.3 MW / 5 MWh Battery | $3,000,000 | $1.47 Million | Up to 49% |
These figures are indicative only. Actual savings depend on battery specifications, network location, electricity usage, and certificate prices.
Why Install a Commercial Battery?
A commercial battery delivers value beyond the government incentive.
Increase Solar Self-Consumption
Store excess daytime solar energy and use it during evenings or cloudy periods, reducing electricity purchased from the grid.
Reduce Peak Demand Charges
Battery systems can discharge during demand spikes, lowering expensive demand charges that often form a significant portion of commercial electricity bills.
Energy Price Arbitrage
Charge the battery when electricity prices are low and discharge when prices increase, helping reduce operating costs.
Backup Power
Maintain business operations during outages, improving operational resilience and reducing downtime.
Lower Carbon Emissions
Battery storage enables businesses to maximise renewable energy usage and support sustainability goals.
Why Choose EcoBridge Australia?
EcoBridge Australia specialises in commercial renewable energy solutions tailored to Australian businesses.
Our services include:
- Commercial battery feasibility studies
- Energy consumption analysis
- Solar and battery system design
- Government rebate guidance
- PDRS incentive support
- Commercial solar installation
- Battery installation
- Ongoing maintenance and support
Our experienced team works with businesses across multiple industries to deliver solutions that maximise long-term energy savings while ensuring compliance with all applicable standards.
Get a Free Commercial Battery Assessment
Thinking about installing a commercial battery?
EcoBridge Australia can help you:
- Assess eligibility for NSW incentives
- Estimate potential rebate value
- Compare battery technologies
- Calculate return on investment
- Design the right battery size for your business
Speak with our team today for a no-obligation commercial battery assessment.
Contact EcoBridge Australia
EcoBridge Australia
✉️ Email:info@ecobridgeenergy.com
🌐 Website:https://ecobridgeenergy.com/
Book a free consultation to discover how much your business could save with commercial battery storage and available NSW Government incentives.
Frequently Asked Questions (FAQs)
1. What is the NSW Commercial Battery Rebate?
The rebate is an incentive available under the NSW Peak Demand Reduction Scheme (PDRS) that reduces the upfront cost of eligible commercial battery installations through Peak Reduction Certificates (PRCs).
2. When does the rebate begin?
Eligible battery installations completed from 1 September 2026 can access the new commercial battery incentives.
3. How much money can my business save?
Depending on your battery size and project details, incentives may reduce installation costs by approximately 20% to 50%.
4. What is the difference between BESS4 and BESS5?
BESS4 applies to batteries between 20 kWh and 200 kWh, while BESS5 covers systems larger than 200 kWh up to 30 MWh.
5. Can I install solar and a battery together?
Yes. Installing new solar alongside your battery may increase the number of certificates generated, resulting in a larger incentive if the required sizing criteria are met.
6. Are residential properties eligible?
No. BESS4 and BESS5 are designed for commercial, industrial, and community facilities. Separate programs exist for residential battery installations.
7. Are data centres eligible?
No. Data centres are specifically excluded from these commercial battery activities.
8. How is the rebate calculated?
The rebate is based on the number of Peak Reduction Certificates (PRCs) created, which depends on battery size, inverter capacity, electricity network, and current PRC market prices.
9. Can EcoBridge Australia help with the application?
Yes. EcoBridge Australia assists businesses with project assessment, system design, rebate eligibility, documentation, installation, and ongoing support.
10. How do I get started?
Simply contact EcoBridge Australia to arrange a free consultation. Our team will assess your site, estimate available incentives, and recommend the most suitable commercial battery solution for your business.
