PDRS Rule and changes
This page has information about the Peak Demand Reduction Scheme Rule (PDRS Rule). The PDRS Rule applies to Accredited Certificate Providers (ACPs) and their activities to reduce peak demand. It provides details about:
- nomination as the Capacity Holder
- recognised peak activities (RPAs)
- product acceptance requirements
- calculation methods for determining peak reduction capacity
- eligibility, equipment and implementation requirements
- conversion of peak reduction capacity to Peak Reduction Certificates (PRCs).
ACPs must understand and comply with the PDRS Rule.
The latest PDRS Rule commenced on 1 July 2025.
Peak Demand Reduction Scheme Rule of 2022 - 1 July 2025
See the PDRS Method Guide for more information about complying with the PDRS Rule.
The NSW Department of Climate Change, Energy, the Environment and Water develops the policy behind the PDRS. It also updates the PDRS Rule annually or at other times as required. To find out more about how the PDRS Rule is updated and how to get involved, visit the NSW Climate and Energy Action.
PDRS Rule change commencing 1 July 2025
A new PDRS Rule commenced on 1 July 2025. Changes include:
- suspending activity BESS1 (Install a new behind the meter battery energy storage system)
- increasing incentives and changing requirements for BESS2 (Onboard a behind the meter battery energy storage system with a Demand Response Aggregator).
Transitional arrangements in the new PDRS Rule allows ACPs to create certificates:
- for BESS1 implementations with an implementation date before 1 July 2025
- using the new PDRS Rule from 1 July 2025 for BESS2 implementations regardless of implementation date, provided the battery has been onboarded.
Our PDRS Quick Reference Guide - 13 June 2025 will help you understand and comply with the changes in the Rule.
PDRS Rule change commencing 19 December 2024
Changes to the PDRS Rule that commenced on 19 December 2024 include:
- suspending the heat pump water heater activity (WH1) until further notice.
- WH1 implementations with an Implementation Date after 19 December 2024 are not eligible for certificate creation, but certificates can still be registered for implementations that occurred on or before this date.
- introducing transitional arrangements to temporarily allow ACPs to register certificates from BESS1 activities where they have not been able to meet the DER registration requirement after making a proper application to register the battery
- clarifying that BESS1 battery installations that use an existing inverter are eligible for certificate creation provided all PDRS requirements are met
- updating BESS1 Equipment Requirements – an existing inverter used as part of a BESS1 implementation must have a warranty of at least 10 years from the date it was installed.
See the PDRS Quick Reference Guide - December 2024 for more information.
PDRS Rule change commencing 13 September 2024
A new PDRS Rule was published on 6 September 2024 and commenced on 13 September 2024. It made changes for battery activities that commenced on 1 November 2024:
- multiple battery units are considered a single battery system and can be installed under BESS1 and signed up to a VPP contract under BESS2. The combined capacity of the system must be less than 28 kWh
- battery warranty requirements have been lowered for implementation dates between 1 November 2024 and 31 March 2026
- clarifying the requirement to collect and provide National Metering Identifiers (NMIs) applies to all PDRS activities with an implementation date on or after 1 November 2024
- other minor editorial changes.
See our PDRS Quick Reference Guide - September 2024 for more information.
PDRS Rule change commencing 1 August 2024
The following changes apply to all implementations on or after 1 August 2024:
- excluding heat pump water heaters with a volumetric capacity less than or equal to 425L (WH1) (note this activity has now been suspended - see above)
- introducing a capacity factor for heat pump water heaters (WH1)
- removing activities installing high efficiency motors (SYS1) and removing a spare fridge or freezer (RF1)
- clarifying replacement refrigerated display cabinets must replace an existing product of the same type (RF2)
- excluding refrigerated display cabinets with 4 or more display sides (RF2)
- reducing lifetimes from 12 to 8 years for Class 7, 8 and 11 refrigerated cabinets with more than 3.3m2 of display area (RF2)
- including installing a new pool pump as an eligible activity (SYS2)
- making changes to the pool pump activity including a lower minimum star rating, the equation to calculate peak demand savings capacity, adjustment factors and lifetime (SYS2).
