The Reducing Demand Using Efficiency (RDUE) method under the Peak Demand Reduction Scheme Rule (PDRS Rule) offers incentives for projects that reduce peak demand by being more energy efficient. The RDUE method has similar activities to the following Energy Savings Scheme (ESS) methods:

  • Home Energy Efficiency Retrofits (HEER)
  • Installing High Efficiency Appliances for Business (IHEAB)
  • Removal of Old Appliances (RoOA).

There are 7 activities that correspond to activities under these ESS methods.

End-User Equipment PDRS Activity Definition ESS Method ESS Activity Definition
Residential air conditioners HVAC1 Home Energy Efficiency Retrofits D16
Commercial air conditioners HVAC2 Installation of High Efficiency Appliances for Business F4
Heat pump water heaters WH1 Installation of High Efficiency Appliances for Business/ Home Energy Efficiency Retrofits F16/D17*
Non-primary refrigerators and freezers RF1 Removal of Old Appliances C1
Refrigerated cabinets RF2 Installation of High Efficiency Appliances for Business F1.2
Motors (refrigeration and ventilation) SYS1 Installation of High Efficiency Appliances for Business F7
Residential pool pumps SYS2 Home Energy Efficiency Retrofits D5

* Under the PDRS Rule, PRCs cannot be generated from heat pump water heaters installed in a BCA Class 1 or 4 building.  This means that implementations under the corresponding ESS Activity Definition D17 in these building types cannot be used to create PRCs.

Evidence requirements

Evidence requirements for this method are similar to requirements for the respective ESS method and activity definitions and are set out in the RDUE Method Guide. Accredited Certificate Providers (ACPs) are not restricted in the type of evidence they provide to support certificate creation, but it must demonstrate that you have met the various equipment, eligibility and implementation requirements as set out in the PDRS Rule.

Eligibility to create certificates from activities implemented before the PDRS Rule commenced

ACPs are able to create Peak Reduction Certificates (PRCs) from eligible ESS activities implemented from 1 April 2022. To be eligible to create PRCs from these activities you must be:

  • accredited for the corresponding activity under the ESS before the implementation date
  • nominated as the energy saver for the activity under the ESS on or before the implementation date (see the Nomination page for more details)
  • accredited under the PDRS before you create PRCs.

PRCs can be registered in the Registry of Certificates if you meet these criteria.

Our website contains more information on becoming an ACP in the PDRS.

Nomination after the PDRS Rule commenced

The PDRS Rule commenced on 29 September 2022. Once you are accredited under the PDRS we expect you to use the new combined ESS and PDRS nomination form to be nominated as the Capacity Holder. However, your nomination under the PDRS can be deemed if you have an applicable ESS nomination, up until the one-year anniversary of the commencement of the PDRS Rule.

Ineligible activities

The following activities are specifically excluded from the scheme:

  • Activities that permanently reduce production or service levels, including safety levels
  • Activities not implemented at a site or sites in NSW
  • Activities that are unlawful to carry out.

Water heater equipment requirements

Commercial heat pump water heater equipment installed under Activity Definition WH1 must be accepted by the Scheme Administrator as meeting equipment requirements. A list of accepted water heaters can be found in our online system, TESSA

Multiples of any single heat pump water heater on the Accepted Products List are accepted for use under Activity Definition WH1 provided the heat pumps:

  • are accepted for use in Activity Definition WH1
  • are each identical models
  • are joined in parallel and
  • have balanced water flow (see Notice 03/2023 for details, including how to calculate PRCs and upload implementation data when installing multiples)

Information on how to apply for product acceptance is available on our Product acceptance page.


Relevant Documentation

ESS Notice 01/2024 - Refrigerated cabinet activity compliance
Notice 03/2023 - Multiple heat pump water heater activities
Reducing Demand Using Efficiency - Peak Demand Savings Capacity Method Guide