The Peak Demand Reduction Scheme Rule (PDRS Rule) applies to Accredited Certificate Providers (ACPs) and their peak demand reduction activities. 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.
ACPs must understand and comply with the PDRS Rule.
The latest PDRS Rule commenced on the 19 December 2024.
Peak Demand Reduction Scheme Rule of 2022 - 19 December 2024
See the PDRS Method Guide for more information about complying with the current PDRS Rule.
PDRS Rule change commencing 1 July 2025
A new PDRS Rule commences 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 - June 2025 will help you understand and comply with the changes in the Rule.
See our PDRS Method Guide published in June 2025 for information about how to comply.
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.
Our PDRS Quick Reference Guide - December 2024 will help you understand and comply with the changes in the latest Rule.
PDRS Rule change commencing 13 September 2024
A new PDRS Rule was published on 6 September 2024 and commenced on 13 September 2024 that 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.
More information about battery activities is available on our About PDRS battery activities page.
See our PDRS Quick Reference Guide - September 2024 for more information.
Relevant documents
PDRS Quick Reference Guide - December 2024
Peak Demand Reduction Scheme Rule of 2022 - 19 December 2024
PDRS Quick Reference Guide - September 2024
Peak Demand Reduction Scheme Rule of 2022 - 6 September 2024
PDRS Quick Reference Guide - August 2024
Peak Demand Reduction Scheme Rule of 2022 - commenced 1 August 2024
Previous versions of the PDRS Rule