New Energy Savings Scheme (ESS) and Peak Demand Reduction Scheme (PDRS) Rules commenced on 1 July 2026

Changes to existing activities commence on 1 July 2026. Three new battery activities commence on 1 September 2026.  Incentives for implementations of some commercial heat pump water heater products will change after 31 December 2026.

A summary of the key changes and when they occur is listed in the table below.

Effective from Changes
1 July 2026

ESS Rule and PDRS Rule changes for existing activities commence including: 

  • changes to:
    • ESS air conditioner activities D16, F2 and F4
    • PDRS air conditioner activities HVAC1 and HVAC2
    • ESS liquid chilling packages
    • PDRS battery activity BESS1
    • PDRS VPP activity BESS2
  • removing PDRS heat pump water heater activity WH1.
1 September 2026

New PDRS battery activities commence:

  • BESS3 (apartments)
  • BESS4 (small and medium businesses)
  • BESS5 (commercial and industrial businesses).
1 January 2027 For ESS heat pump water heater activities F16 and F17, confidence factors used to calculate energy savings reduce from 1 to 0.7 for installations of products with individual heat pump thermal capacities of 10kW and above.

Where to find more information

Read our webpages and documents

Find full details of the changes, their impacts and what Accredited Certificate Providers need to do at:

Find a summary of new and updated documents at:

Document updates for Safeguard Rule change commencing 1 July 2026

Attend a webinar

We're running two information sessions in July to help you understand recent (and upcoming) ESS and PDRS Rule changes and what you need to do. 

The first session will focus on battery activities and the second on updates to air conditioning and other activities. 

We'll cover the key changes, hear from our compliance team and Building Commission NSW, and allow plenty of time for questions.

See the event pages for more details and to register:

Contact us

Got a policy question?

Please contact the NSW Department of Climate Change, Energy, the Environment and Water at sustainability@environment.nsw.gov.au

We’re seeking your feedback

We're seeking feedback on proposed changes to evidence requirements for existing activities and for new battery activities by 22 July. See our Consultation page for details.

If you’re interested in becoming accredited for battery activities

  • Review the information on our website linked above, including the PDRS Rule and Method Guide, to understand activity requirements.
  • If you’re not already an ACP, see our Should I become an ACP? and consider if becoming accredited is right for you.

If you decide to apply, you’ll need to apply for a new accreditation for each battery activity even if you’re already accredited for BESS1. See our Preparing your application page for more information.