General information only. Government programs change often — check the official source before you sign.
What is the PDRS?
The Peak Demand Reduction Scheme (PDRS) is a NSW Government scheme that rewards activities which reduce electricity demand at peak times. Home batteries — and connecting them to a virtual power plant (VPP) — are among the supported activities.
The rules were updated from 1 July 2026, and new battery activities started from 1 September 2026, including one aimed at apartments.
How the incentive works
Like the federal program, the PDRS works through certificates created by accredited providers. The provider usually passes the value on as a discount on your quote, or as a payment after connecting to a VPP. The amount depends on the activity, the equipment and the rules in force at the time.
What is a VPP?
A virtual power plant links many home batteries so an energy company can draw on a small part of their stored energy at times of high demand. In return you usually get credits or payments. Terms vary a lot, so compare:
- How much of your battery the VPP can use, and how often.
- What you’re paid, and whether it’s guaranteed.
- Whether you’re locked into a particular retailer or plan.
- Whether joining affects your battery warranty.
- Whether you can leave, and what happens to any incentive if you do.
Stacking with the federal discount
The federal Cheaper Home Batteries discount and the NSW PDRS are separate programs, and many households can benefit from both. Ask your installer to show each incentive as a separate line, with the conditions attached.
See our battery quotes page and battery rebates guide for more detail.
Sources
- NSW — new ESS and PDRS rules from 1 July 2026
- Clean Energy Regulator — Battery rebates are changing 1 May 2026
Frequently asked questions
Do I have to join a VPP to get a NSW battery incentive?
Some PDRS activities relate specifically to connecting a battery to a VPP. Check which activity your quote is based on.
Who claims the PDRS incentive?
Usually an accredited provider, who passes the value on to you. Ask how it is shown on your quote.