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 (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


Home Energy Efficiency Retrofits


Commercial air conditioners


Installation of High Efficiency Appliances for Business


Heat pump water heaters


Installation of High Efficiency Appliances for Business/ Home Energy Efficiency Retrofits


Non-primary refrigerators and freezers


Removal of Old Appliances


Refrigerated cabinets


Installation of High Efficiency Appliances for Business


Motors (refrigeration and ventilation)


Installation of High Efficiency Appliances for Business


Residential pool pumps


Home Energy Efficiency Retrofits


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

Relevant Documentation

Reducing Demand Using Efficiency - Peak Demand Savings Capacity Method Guide