Battery Storage Certificates
Battery energy storage systems can qualify for government-backed certificate schemes and incentive programs that improve project returns while supporting grid reliability and decarbonisation goals. Northmore Gordon helps businesses identify eligible opportunities, manage compliance requirements, and secure the environmental certificates available for battery storage projects across relevant Australian programs.
Create Peak Reduction Certificates for eligible battery energy storage systems in New South Wales
The NSW Peak Demand Reduction Scheme provides certificate incentives for eligible battery energy storage systems, including residential, apartment, small business and large commercial and industrial battery projects.
Peak Reduction Certificates, or PRCs, may be available across the BESS1 to BESS5BESS5: larger battery systems for eligible commercial and industrial sites activities. For larger commercial and industrial projects, PRCs may also be available alongside other certificate streams, including Large-scale Generation Certificates and Renewable Energy Guarantee of Origin certificates where the relevant requirements are met.
The certificate opportunity depends on the battery size, installation date, site, network area, solar configuration, equipment, approvals and the specific BESS activity under which the project is registered. For this reason, the certificate pathway should be assessed before equipment is ordered or installation begins.
Northmore Gordon works with battery installers, integrators, energy developers, EPCs and commercial and industrial asset owners to assess eligibility, identify available certificate streams and manage the evidence, registration and certificate creation process.
Speak with Northmore Gordon before committing to a battery size, solar co-investment or government funding arrangement. Decisions made during the project design stage may affect the number and type of certificates the project can create.
Get In TouchWhat we'll be covering
- BESS Calculator
- What are Battery Solar (BESS) rebates worth?
- BESS1 to BESS5 Battery Activities
- These examples are indicative only and must not be used as a formal quote or confirmation of eligibility. Scheme rules, calculations and market prices must be confirmed for each project.
- System Eligibility for BESS5 Certificates
BESS Calculator
This calculator is a practical tool for battery installers, asset owners and project managers in New South Wales. It estimates the potential Peak Reduction Certificate revenue available for eligible BESS1 to BESS5 battery energy storage projects, providing an early indication of the financial incentive that may be available. For tailored advice or confirmation of project eligibility, users are encouraged to speak directly with our certificate optimisation experts.This calculator is a practical tool for commercial solar installers, asset owners and project managers in Victoria. It estimates the potential VEECVictorian Energy Efficiency Certificate revenue from eligible solar PVSolar Photovoltaic systems, providing early-stage financial insight. For tailored advice or eligibility confirmation, users are encouraged to speak directly with our certificate optimisation experts.
““Talk to us before you install. We can map the eligible schemes, estimate the certificate opportunity and establish the evidence requirements before the project begins.”
Siddarth Bansal, Corporate Decarbonisation Manager – Northmore Gordon Tweet
What are Battery Solar (BESS) rebates worth?
The NSW Peak Demand Reduction Scheme allows eligible battery energy storage systems to create Peak Reduction Certificates.
The applicable activity depends primarily on the type of site, battery capacity, solar arrangement and how the battery will participate in reducing demand during peak periods.
The activities range from residential systems through to large commercial and industrial battery installations.
BESS1 to BESS5 Battery Activities
BESS1: Residential batteries
BESS1 applies to eligible residential battery systems associated with solar.
Key project characteristics may include:
- Battery systems between 2 kWh and 28 kWh.
- Solar at the same site.
- Eligible equipment and installation requirements.
- Potential interaction with the federal Cheaper Home Batteries Program.
- Peak Reduction Certificates created under the NSW scheme.
BESS2: Virtual Power Plant participation
BESS2 applies to eligible batteries participating in a qualifying Virtual Power Plant arrangement.
Key project characteristics may include:
- Battery systems between 2 kWh and 50 kWh.
- A qualifying Virtual Power Plant contract.
- Solar may not be required under this activity.
- Peak Reduction Certificates created under the NSW scheme.
BESS3: Apartment buildings
BESS3BESS3: battery systems for eligible apartment buildings is intended for eligible battery projects serving apartment buildings or multiple dwellings.
Key project characteristics may include:
- Battery systems between 20 kWh and 200 kWh.
- Buildings with four or more dwellings.
- Potential additional certificate value where qualifying solar is installed.
- Peak Reduction Certificates created under the NSW scheme.
BESS4: Small and medium business batteries
BESS4BESS4: battery systems for eligible small and medium business sites applies to eligible small and medium business battery installations.
Key project characteristics may include:
- Battery systems between 20 kWh and 200 kWh.
- Solar may be optional.
- Potential increased certificate quantities where qualifying new solar is installed.
- Aggregator-capable battery hardware.
- No previous conflicting BESS claim at the site.
BESS5: Large commercial and industrial batteries
BESS5 applies to larger commercial and industrial battery energy storage systems.
Key project characteristics may include:
- Usable battery capacity between 200 kWh and 30 MWh.
- PRC incentives capped at 10 MWh of eligible capacity.
- Potential creation of PRCs.
- Potential interaction with LGCs and REGOs where applicable.
- Solar is optional, but additional requirements apply where new solar is included.
- Development and network approvals.
- Relevant fire safety testing and commissioning evidence.
BESS5 is likely to be the primary activity for manufacturers, warehouses, cold stores, commercial buildings and other large energy users considering a significant battery installation.
What are BESS certificates worth?
The value of a BESS certificate project depends on:
- The eligible usable capacity of the battery.
- The applicable BESS activity.
- The site’s network area.
- Whether qualifying new solar is installed.
- The number of certificates created.
- The market price of PRCs when they are sold.
- Registration, evidence and processing costs.
- Whether additional certificate streams are available.
PRC prices can change as certificate supply and demand change.
The supplied estimate uses an indicative PRC price of approximately $2.50, with a historical range of approximately $0.90 to $3.60 per certificate.
These figures should not be presented as guaranteed certificate prices.
Example: 1 MWh BESS5 project without new solar
Using the assumptions in the calculator, a 1,000 kWh eligible battery could create approximately 63,314 PRCs before any applicable network adjustment.
At an indicative price of $2.50 per PRC, the gross certificate value would be approximately $158,000 before GST, registration, processing and other project costs.
Example 2: 1 MWh BEss5 Project with qualifying solar
Using the assumptions in the calculator, a 1,000 kWh eligible battery with qualifying new solar could create approximately 94,500 PRCs before any applicable network adjustment.
At an indicative price of $2.50 per PRC, the gross certificate value would be approximately $236,250 before GST, registration, processing and other project costs.
These examples are indicative only and must not be used as a formal quote or confirmation of eligibility. Scheme rules, calculations and market prices must be confirmed for each project.
System Eligibility for BESS5 Certificates
To be considered for BESS5 certificate creation, a project may need to meet requirements including:
- The site is located in New South Wales.
- The usable battery capacity is at least 200 kWh.
- The system does not exceed the applicable maximum capacity.
- Only the first 10 MWh of eligible capacity is included in the PRC incentive calculation.
- Battery equipment appears on the applicable approved product list.
- The battery is capable of participating through an eligible aggregator where required.
- Required Development Application approvals have been obtained.
- Required Distribution Network Service Provider approvals have been obtained.
- Grid connection and commissioning requirements have been completed.
- Applicable battery fire and safety testing has been completed.
- The project has not already been claimed under a conflicting BESS activity.
- The project is registered and structured in accordance with the scheme requirements.
Process and Timelines for Solar VEECs
Northmore Gordon manages the BESS certificate process from early eligibility assessment through to certificate creation and sale.
1. Assess – We confirm the applicable BESS activity, estimate the certificate opportunity and identify any project requirements before installation.
2. Register – We establish the certificate pathway and confirm the evidence, approvals and documentation required.
3. Install -The battery is installed and commissioned, with the required evidence collected throughout the project.
4. Create – We calculate, submit and manage the creation of eligible certificates.
5. Sell – Certificates are sold under the agreed pricing arrangement, with payment made once the process is complete.
Contact Northmore Gordon before ordering equipment or beginning installation, as some eligibility requirements cannot be addressed retrospectively.
Still Looking For Something Else?
Battery certificate opportunities vary between states and certificate programs.
If your battery project is located outside New South Wales, or the proposed system does not fit within BESS1 to BESS5, Northmore Gordon can assess other potential energy, renewable energy or carbon certificate pathways.
Request Call BackApplicable Building / Sites
- Homes and residential properties
- Apartment buildings
- Small and medium businesses
- Commercial buildings
- Industrial sites
- Manufacturing facilities
- Warehouses and distribution centres
- Cold storage facilities
- Food and beverage facilities
- Solar and battery projects
Applicable States
New South Wales
Key Person
Siddharth Bansal
Senior Business Development ManagerSiddharth Bansal is a Senior Business Development Manager specialising in the procurement of Renewable Energy Certificates (RECs) and Carbon Offsets. With extensive expertise in developing and implementing Net-Zero roadmaps, Siddharth has been instrumental in guiding corporations through their journey towards sustainability and carbon neutrality. Siddharth’s passion for sustainability, coupled with his strategic approach, empowers organisations...
Contact SiddharthFrequently Asked Questions
What is a Peak Reduction Certificate?
A Peak Reduction Certificate, or PRC, is a tradeable certificate created through the NSW Peak Demand Reduction Scheme. PRCs are created from eligible activities that reduce electricity demand during specified peak periods. Battery energy storage systems may be eligible where they meet the requirements of an approved BESS activity.
Which battery systems can create PRCs?
Eligible systems may fall under one of the BESS1 to BESS5 activities. The correct activity depends on factors including the type of site, battery capacity, solar configuration, Virtual Power Plant or aggregator participation, equipment and installation date. Northmore Gordon can assess the appropriate activity before the project begins.
What is the difference between BESS4 and BESS5?
BESS4 generally applies to eligible small and medium business battery systems between 20 kWh and 200 kWh. BESS5 is intended for larger commercial and industrial battery systems with usable capacity from 200 kWh to 30 MWh. The BESS5 incentive is capped at 10 MWh of eligible capacity. Final activity selection must be confirmed against the applicable scheme requirements.
Can BESS5 projects create PRCs, LGCs and REGOs?
A BESS5 project may have access to more than one certificate stream, depending on its design and whether an eligible renewable generation component is included. PRCs, LGCs and REGOs have separate eligibility, evidence and registration requirements. The ability to use multiple certificate streams must be assessed for each project.
Does existing solar affect battery eligibility?
Existing solar does not necessarily prevent a battery project from being eligible. However, the certificate calculation may differ depending on whether the site has existing solar or new solar is installed as part of the project. Additional capacity, timing and funding requirements may apply where the project seeks the higher solar-associated PRC calculation.
How much is a PRC worth?
The calculator uses an indicative price of $2.50 per PRC for early-stage estimates only. This is not a guaranteed price or formal certificate offer. Speak with Northmore Gordon about current spot or forward pricing before using certificate revenue in a project business case.
Last Updated: 07/30/26
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