Commercial Battery Planning Approvals in NSW: CDCs, DAs & Exempt Development
Installing a commercial battery in NSW? Before installation begins, it is important to understand which planning pathway applies to the site and what approvals need to be in place.
For projects participating in the Peak Demand Reduction Scheme (PDRS), planning documentation is also part of the evidence requirements for BESS3, BESS4 and BESS5 activities. The IPART Method Guide sets out minimum documentation requirements for each activity.
Depending on the size of the battery, its location and the characteristics of the site, NSW planning legislation provides different pathways that may include:
→ Exempt Development
→ Complying Development (CDC)
→ Development Application (DA)
The right pathway isn't determined by battery capacity alone. Land zoning, existing battery storage, heritage controls, flooding and other planning constraints can all be relevant.
At a glance: which pathway could apply?
| Pathway | Key battery threshold | What it means |
|---|---|---|
| Exempt Development | The storage battery at the site is not capable of storing more than 20 kWh. Only one battery may be installed. | No development consent is required where all applicable exempt-development requirements are satisfied. |
| Complying Development (CDC) | Up to 100 kWh combined site storage in a prescribed residential zone. | A CDC may be available where all applicable complying-development requirements are satisfied. |
| Complying Development (CDC) | Up to 200 kWh combined site storage on other land. | A CDC may be available where all applicable complying-development requirements are satisfied. |
| Development Application (DA) | Where the development cannot proceed through an available exempt or complying-development pathway. | Development consent is obtained through the relevant consent authority. |
The capacity limits are not the only tests. A project must satisfy all applicable requirements of the relevant planning pathway.
When can a battery be Exempt Development?
NSW's State Environmental Planning Policy (Transport and Infrastructure) 2021 contains specific exempt-development provisions for solar battery systems.
Under the provisions in Part 2.3 - Division 4 - Electricity generating works or solar energy systems, section 2.41, the system must satisfy a number of requirements. These include that the battery system is not capable of storing more than 20 kWh of energy and a number of other requirements. More details are available in the legislation: https://legislation.nsw.gov.au/view/whole/html/inforce/current/epi-2021-0732#sec.2.41
Important for PDRS projects
Typically, batteries to be claimed under the PDRS will not be considered an exempt development.
The IPART Method Guide specifies minimum planning documentation for BESS3, BESS4 and BESS5. These requirements need to be considered separately from whether development might otherwise satisfy an exempt-development provision under planning legislation. Reach out to NCBA to check!
When could a battery use a CDC?
A Complying Development Certificate (CDC) is a streamlined planning and building approval pathway available for development that meets predetermined requirements. It takes as little as 20 days to get a CDC approved.
The Transport and Infrastructure SEPP provides a complying-development pathway specifically for solar battery systems.
Among the requirements, the current provisions state that the maximum storage capacity of all solar battery systems installed on the site must not exceed:
100 kWh where the system is installed on land in a prescribed residential zone, or
200 kWh where it is installed on other land.
It's the total battery storage at the site that matters
This is an important point for commercial battery projects.
The legislation refers to the maximum storage capacity of all solar battery systems installed on the site.
That means the assessment isn't simply based on the capacity of the new battery being installed. Existing battery systems at the site are relevant when assessing the 100 kWh or 200 kWh threshold.
For example, a proposed new battery cannot be considered against the capacity threshold in isolation where other solar battery systems are already installed at the site.
What else does a CDC battery need to meet?
Capacity is only one part of the complying-development test.
Under the SEPP (Transport and Infrastructure 2021) provisions in Part 2.3 - Division 4 - Electricity generating works or solar energy systems, section 2.36 also includes requirements relating a number of other compliance and environmental to be met. More detail is available here: https://legislation.nsw.gov.au/view/whole/html/inforce/current/epi-2021-0732#sec.2.36
Your private certifier will need to assess the proposed development and the characteristics of the site against the applicable planning requirements to confirm if a CDC or DA apply.
Flood-affected land: why the location of the battery matters
Flooding can be particularly important when assessing whether a project can proceed as complying development.
A site's Section 10.7 Planning Certificate can identify whether the property is a flood control lot.
For complying development on flood-affected land, it can then be necessary to determine where on the lot the proposed battery will actually be installed.
The NSW complying-development provisions contain restrictions relating to these areas. They also provide mechanisms involving certification by council or an appropriately qualified hydraulic engineer in applicable circumstances.
This means that simply knowing that a property is identified as flood affected doesn't necessarily provide the complete answer — the characteristics of the land and the proposed location of the battery within the property can matter.
Depending on the applicable provisions, additional flood-related standards may also need to be addressed, including matters such as flood-compatible materials, structural resistance to floodwater and debris, impacts on flood behaviour and safe evacuation access. This will be determined by your certifier or council and may impact if you need to apply for a CDC or DA.
Heritage and environmentally sensitive land
The characteristics of the property can also affect whether complying development is available.
Relevant considerations can include whether the land:
contains a State Heritage Register item
is subject to an interim heritage order
is within a heritage conservation area
is within an environmentally sensitive area
contains critical habitat or is within a wilderness area
requires concurrence from another authority.
The solar-battery complying-development provisions also contain a specific requirement for development on land containing a heritage item or within a heritage conservation area: the system must not be visible from a road at ground level at the property boundary. Whether a CDC or a DA is required in these circumstances will be determined by your certifier or council.
Check the land zoning — not just the type of building
One of the easiest mistakes to make is assuming that a commercial property automatically falls under the 200 kWh CDC threshold.
The legislation instead distinguishes between land within a prescribed residential zone and other land.
So the actual planning zone applying to the property needs to be established.
This can be checked using planning information for the property, including the NSW Planning Portal and the site's Section 10.7 Planning Certificate.
The same principle can produce results that aren't immediately obvious from looking at the building itself. For example, the fact that a property contains residential premises does not, by itself, tell you which battery capacity threshold applies — the land zoning needs to be checked.
When is a Development Application required?
Where development cannot be carried out through an available exempt or complying-development pathway, development consent may need to be obtained through a Development Application (DA).
A DA involves assessment by the relevant consent authority and can consider the particular characteristics and impacts of the proposed development. It is a longer process that takes more time to complete than a CDC.
For PDRS projects, it is also important to check the separate planning evidence specified by the current IPART Method Guide for the relevant BESS activity. If you are unsure, reach out to NCBA to check what will be acceptable.
Don't forget Network Approval
Planning approval isn't the only approval relevant to a PDRS commercial battery project.
The current IPART Method Guide also specifies Network Approval from the Distribution Network Service Provider (DNSP) within the minimum documentation requirements for BESS3, BESS4 and BESS5.
This is separate from obtaining a CDC or DA.
Who determines whether a CDC is an applicable pathway for a project?
Whether a proposed development satisfies the requirements for a CDC is assessed through the certification process.
A registered certifier or council can issue a CDC where the proposed development satisfies the applicable requirements.
Because factors such as zoning, flooding, heritage controls, existing batteries and the proposed location of the equipment can affect the assessment, planning approval should be investigated early in the project — before installation begins.
Planning a BESS3, BESS4 or BESS5 project?
The rules can look straightforward until you start working through an actual site.
Is the 100 kWh or 200 kWh threshold relevant?
Are there already batteries at the property?
What is the land zoned?
Is it a flood control lot?
Are heritage or environmental controls involved?
What documents will the certifier need?
Who can actually assist with the CDC or DA?
That's where we can help make the process easier.
More resources are available to our customers
We've developed additional resources for customers undertaking commercial battery projects, including:
CDC application checklists
guidance on the documents commonly required during the application process
information on obtaining documents such as planning certificates, deposited plans and property information
industry contacts, including contacts who may be able to assist with CDC and DA planning approval applications
information to help customers understand the documentation required for PDRS certificate creation.
Already working with us, or interested in becoming a customer? Reach out to our team for access to our commercial battery planning resources and industry contacts.
Important
This information is a general summary of publicly available NSW planning requirements and IPART PDRS requirements. It is not planning, legal or certification advice.
Planning requirements depend on the individual development and site, and legislation can change. Always check the current legislation and confirm the appropriate approval pathway with your registered certifier, council or appropriately qualified planning professional before carrying out development.