NSW Commercial Battery Incentives · BESS3 · BESS4 · BESS5
NSW Commercial Battery Rebates Are Changing
New BESS3, BESS4 & BESS5 incentives start 1 September 2026.
Install commercial battery storage and take advantage of NSW Peak Demand Reduction Scheme incentives while reducing your electricity costs, managing peak demand and increasing your energy independence.
Which BESS incentive applies to your business?
Three NSW Peak Demand Reduction Scheme activities commence on 1 September 2026. Your building type and battery size determine which one applies.
BESS3
Apartment Buildings
20–200 kWh
Minimum customer payment of $1,000 per implementation.
View BESS3 detailsBESS4
Small & Medium Businesses
20–200 kWh
Minimum customer payment of $5,000 per implementation.
View BESS4 detailsBESS5
Commercial & Industrial
200–30,000 kWh
Incentives apply to the first 10,000 kWh of capacity. Some details remain subject to IPART consultation.
View BESS5 detailsSolar. Battery. Energy management.
Commercial Solar
Reduce daytime electricity consumption with a professionally designed commercial solar system.
Commercial Battery
Store energy when electricity is cheaper and use it when demand and electricity costs are higher.
Solar + Battery
Generate your own energy during the day, store excess energy and reduce your dependence on the grid.
Peak Demand Management
Use battery storage to reduce expensive peak-period electricity demand.
Two calculators, one clear answer
BESS eligibility check
Answer a handful of questions about your property, solar and battery size. We route your project to BESS3, BESS4 or BESS5 automatically.
Check your eligibilityCommercial battery ROI
Model annual energy savings, peak-demand savings, arbitrage value and payback for your site.
Open the ROI calculatorNSW Government PDRS incentives may reduce the upfront cost of your eligible battery system. The scheme works through Peak Reduction Certificates and Accredited Certificate Providers, so the value depends on the certificate calculation and market value at the time of installation.
NSW commercial battery rebate — common questions
Straight answers about the new NSW battery incentives for businesses, apartments and industrial sites.
Is there a commercial battery rebate in NSW?
Yes. From 1 September 2026, the NSW Peak Demand Reduction Scheme adds three battery activities — BESS3 for apartment buildings, BESS4 for small and medium businesses (batteries above 20 kWh up to 200 kWh) and BESS5 for commercial and industrial sites (above 200 kWh). Incentives are delivered through Peak Reduction Certificates, which reduce your upfront cost.
How much is the NSW commercial battery rebate?
It is not a fixed dollar rebate. The incentive value is based on Peak Reduction Certificates created for your installation, so it depends on your battery size, the certificate calculation and the certificate market value at the time. We calculate an indicative value for your project as part of our assessment.
Who is eligible for the NSW business battery incentive?
BESS4 covers most NSW businesses — retail, hospitality, medical, warehousing and light industrial — installing a battery above 20 kWh and up to 200 kWh at a non-residential site, with a minimum customer payment of $5,000 per implementation. Apartment buildings (BCA Class 2, four or more dwellings) fall under BESS3, and sites above 200 kWh fall under BESS5.
What is the difference between BESS3, BESS4 and BESS5?
BESS3 applies to apartment and strata buildings with batteries above 20 kWh up to 200 kWh. BESS4 covers the same size range at non-residential business sites. BESS5 covers larger commercial and industrial batteries above 200 kWh up to 30,000 kWh, with incentives on the first 10,000 kWh and extra requirements such as UL9540A testing and Demand Response Aggregator control.
Planning a commercial battery project?
Talk to our commercial energy team for an indicative system design, incentive assessment and quotation.