Key definitions and general rules applying to battery installations across BESS1 to BESS5.

Implementation date

The “implementation date” determines which rules apply to the installation. For a new battery installation (BESS1, BESS3, BESS4, BESS5), the implementation date is the date the system is capable of operating and delivering its intended peak demand reduction. It is typically the date the final required certificate (e.g. CES/CCW) is signed.

BCA classifications

Scheme eligibility often depends on the building classification under the Building Code of Australia (BCA).

• Class 1: Typically a single dwelling (e.g. a detached house or a townhouse separated by a fire-resisting wall). Relevant for BESS1 and BESS2.
• Class 2: A building containing two or more sole-occupancy units where people live (e.g. an apartment building). BESS3 applies to Class 2 buildings containing four or more dwellings.

Usable battery capacity

Under the current PDRS Rule, usable battery capacity for most installations is determined as 90% of the nominal battery capacity (the capacity stated by the manufacturer). BESS5 installations may have capacity determined in a manner specified by the Scheme Administrator.

Minimum customer payment

The scheme requires a mandatory minimum customer payment to ensure the customer is materially contributing to the cost of the system. This must not be reimbursed, waived, or refunded. For BESS3, it is $1,000. For BESS4 and BESS5, it is $5,000.

Accredited Certificate Provider (ACP)

An ACP is an entity accredited by IPART to create PRCs. The system owner must nominate the ACP (such as Formbay's subsidiary) using an approved form before the PRCs can be created. For BESS1, 3, 4 and 5, nomination must occur prior to the implementation date. Installations cannot start until the nomination form is signed.

Updated requirements apply to installations from 7 September 2026.

BESS3 is a dedicated PDRS activity for batteries at Class 2 apartment buildings containing at least four individual dwellings. It is relevant to strata buildings, apartment complexes, owners corporations, embedded-energy projects and shared solar and battery projects.

Capacity and equipment

Combined usable battery capacity must be more than 20 kWh and no more than 200 kWh. Eligible installations must meet applicable equipment, inverter capacity, warranty and network connection requirements. Battery equipment must be on the appropriate Clean Energy Council battery list.

Installation and installer requirements

• There must be no previous BESS3 implementation at the site. A co-located BESS4 or BESS5, or an earlier BESS1 implementation, does not by itself block a BESS3 claim.
• The equipment must supply common-property loads and/or be capable of supplying multiple dwellings.
• The installer must be on the Solar Accreditation Australia installer list.
• The battery must be installed outdoors and in accordance with AS/NZS 5139.
• Applicable planning requirements and required network approvals must be met.

Customer benefit and documentation

A minimum customer payment of $1,000 per implementation is required. The BESS3 customer fact sheet must be supplied with the quotation, and the Accredited Certificate Provider must retain evidence that it was supplied.

Updated requirements apply to installations from 7 September 2026.

BESS4 fills the gap between smaller BESS1 projects and larger BESS5 commercial and industrial projects.

Eligible sites and capacity

The battery must be at an eligible business site, not a residential building or data centre. Typical sites can include retail stores, offices, workshops, restaurants, hospitality venues, smaller warehouses, agricultural businesses and commercial premises.

Combined usable battery capacity must be more than 20 kWh and no more than 200 kWh.

Requirements

• Battery equipment must be on the relevant CEC approved battery list.
• Applicable capacity-to-inverter-output, warranty and network connection conditions must be met.
• The battery must be installed by an installer on the Solar Accreditation Australia installer list.
• The installation must comply with AS/NZS 5139 and applicable electrical, safety, planning and network requirements.
• Required planning, distribution-network and electrical approvals must be obtained where applicable.
• New solar PV capacity of at least one quarter of usable battery capacity is required only when a higher-rate “within 90 days of new solar” equation is used. Standalone battery installations using the lower-rate equations do not require co-installed solar.

A minimum customer payment of $5,000 per implementation is required. The BESS4 fact sheet must be provided with the quotation and evidence of provision retained for compliance and audit purposes.

Updated requirements apply to installations from 7 September 2026.

BESS5 is the PDRS pathway for large-scale behind-the-meter commercial and industrial battery systems.

Sites and capacity

The installation must be at an eligible commercial or industrial business site, not a residential building or data centre. Examples include large warehouses, manufacturing facilities, distribution centres, industrial facilities, large retail centres, commercial property portfolios and high-energy-use businesses.

Combined usable battery capacity must be more than 200 kWh and no more than 30,000 kWh (30 MWh). Although a system may be up to 30 MWh, incentives apply only to the first 10,000 kWh (10 MWh) of eligible capacity.

Technical and project requirements

• Meet specific requirements for battery capacity and inverter output. New solar PV capacity of at least one quarter of usable battery capacity is required only when the higher-rate “within 90 days of new solar” equation is used; standalone batteries using the lower-rate equation do not require co-installed solar.
• Nominal battery capacity must be determined in the manner specified by the Scheme Administrator.
• Be internet-connectable and capable of being controlled by a Demand Response Aggregator.
• Meet the applicable UL9540A thermal-runaway and fire-propagation testing requirements.
• Be installed by an appropriately qualified and licensed person in accordance with applicable legislation and standards.
• Obtain all required DNSP connection, planning, electrical engineering, site safety and battery/fire-safety approvals.
• Timing and evidence (BESS5 Implementation Requirement 2): All planning and network approvals MUST be received before the installation takes place. Evidence includes a Complying Development Certificate (CDC), Development Application (DA) approval, or Distribution Network Service Provider (DNSP) approval.