New NSW Battery Incentives Create Fresh Opportunities for Commercial Energy Storage
The demand for commercial battery energy storage continues to grow, and from 1 September 2026, new incentives under the NSW Peak Demand Reduction Scheme will provide additional opportunities for businesses and installers across the state.
The NSW Government has introduced three new battery activities designed to support battery energy storage systems across apartment buildings, small and medium businesses, and larger commercial and industrial facilities. These activities reflect the growing role battery storage plays in reducing peak demand, increasing the value of on-site solar generation and improving energy resilience.
What is changing?
From 1 September 2026, three new battery activities will become available under the PDRS:
- BESS3 – Battery installations for apartment buildings
- BESS4 – Battery installations for small and medium businesses
- BESS5 – Battery installations for commercial and industrial facilities
These activities expand the opportunities available to installers working beyond the residential market and recognise the increasing demand for battery storage in commercial applications.
Potential project savings
At current certificate prices, the incentive may reduce the upfront cost of an eligible, fully installed commercial battery system by approximately 20% to 50%.
Actual savings will vary according to the battery specification, system design, project eligibility, certificate calculations, provider arrangements and prevailing certificate-market values. Eligibility and incentive values should be confirmed for each project before procurement or investment decisions are made.
Why it matters
For many commercial customers, battery storage is about more than backup power.
Businesses are increasingly using batteries to:
- Reduce electricity costs by lowering peak demand
- Maximise self-consumption of on-site solar
- Improve energy resilience during outages
- Better manage changing electricity prices
- Support broader electrification and sustainability goals
With additional incentives becoming available, battery storage may become a more viable investment for a wider range of NSW businesses.
Opportunities for installers
The new activities may create opportunities to engage commercial customers who have previously delayed battery projects due to upfront costs.
Relevant applications may include retail businesses, manufacturers, agricultural operations, schools, apartment developments and other commercial or industrial facilities.
Understanding the new incentive framework can help installers identify projects that may now be more financially viable. Eligibility requirements will still apply, and installers should review the relevant PDRS requirements before progressing with system design, quoting or installation.
Project planning considerations
Commercial battery projects should be assessed using site-specific information rather than incentive estimates alone.
Key considerations may include:
- Electricity consumption and interval data
- Peak-demand periods and load profile
- Existing or proposed solar generation
- Battery power and usable energy capacity
- Network and export requirements
- Switchboard and electrical infrastructure
- Equipment eligibility
- Installation and commissioning dates
- Certificate-provider requirements
- Battery operating and control strategy
How DPA can help
DPA offers a growing range of commercial battery and inverter solutions suitable for residential, commercial and industrial projects.
From modular battery platforms to complete commercial energy storage systems, the DPA team can assist with product selection and provide technical support throughout the design and installation process.
For support with a commercial battery project in NSW, speak with your DPA Business Development Manager or contact the DPA sales team to discuss the requirements of your application.