What the ESS/PDRS expansion means for commercial installers
The NSW Government's update to the Energy Security Safeguard adds new activity types and expands eligibility across ESS and PDRS
For commercial installers, the changes are worth a closer look before you scope your next round of projects.
Commercial air conditioning
From July 1, multi-split systems and large air conditioners above 65kWh are eligible for business sites. Key eligibility points:
Units need at least 30kW cooling capacity
Only large business sites qualify, with one exception: replacing an existing air conditioner at a centralised system, or in a common area of a BCA Class 2 building
Minimum payments are $1,000 for non-multi-split/ducted systems and $3,000 for multi-split or ducted implementations
Small business sites using less than 100MWh of energy per year need to be claimed under the domestic HEERs scheme instead
Commercial heat pump water heaters
From 1 January 2027, the confidence factor for units over 10kW thermal capacity decreases from 1.0 to 0.7. In practice, that means lower incentive value per unit from that date. Projects already scoped or in progress are worth prioritising ahead of the change.
Three new battery activities from September 1
Commercial Batteries - Three new Commercial battery activities launch September 1:
BESS3: for batteries in Class 2 apartment blocks with four or more dwellings, stackable with the Cheaper Home Batteries Program up to 100kWh. No solar is required, though battery and solar together earns more than batteries alone. More detail closer to launch.
BESS4: small/medium business batteries (20-200kWh), stackable with the Cheaper Home Batteries Program up to 100kWh, $5,000 minimum co-payment, CDC or DA required, no solar requirement (though battery + solar earns more than battery-only).
BESS5: commercial and industrial batteries (200kWh), DA approval required.
Also updated: BESS2 (VPP sign-up)
Eligible battery sizes now range from 28kWh to 50kWh, with incentives capped at 28kWh. The solar requirement has been removed, usable capacity is now defined as 90% of nominal capacity, warranty requirements have been relaxed, and the customer nomination form can be signed within 90 days of onboarding, making it easier to bring existing customers into a VPP arrangement.
Working with NCBA on these activities
Over the years, we've built a reputation for paying customers reliably, without asking installers to change how they work to fit us.
If you're looking to get incentives or understand more about the new rules, our team can walk through eligibility, stacking, and documentation requirements.
Amit Pujara
02 9939 5559