NSW Commercial Battery Incentives 2026

New business battery rebates available from 1 September 2026

Big changes are coming for NSW businesses considering battery storage. From 1 September 2026, new NSW commercial battery incentives could significantly reduce the upfront cost of an eligible battery system — with a higher incentive potentially available where eligible new solar PV is installed alongside the battery.

The new incentives, known as BESS4 and BESS5, are part of the NSW Government's Peak Demand Reduction Scheme (PDRS). They are designed to encourage businesses to install battery storage while helping reduce pressure on the electricity grid during periods of high demand.

For businesses, this is a major new opportunity to make battery storage more financially attractive while reducing energy costs, making better use of solar and taking greater control of electricity usage.

At Hardy Solar, we help businesses understand what's available, work out the right battery and solar combination for their site, and design a system that makes commercial sense — from initial assessment through to installation.

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BESS4 – Small & Medium Businesses

BESS4 applies to eligible business battery systems with a usable capacity greater than 20 kWh and up to 200 kWh.

To qualify, the system must:

Be installed at a non-residential site

Not be installed at a data centre

Use batteries listed on the Clean Energy Council's approved battery list

Be installed by an accredited Solar Accreditation Australia installer

Meet relevant Australian Standards and PDRS requirements

Receive required planning and network approvals

BESS4 is suited to businesses such as retail stores, offices, warehouses, workshops, hospitality venues and farms.

For the full BESS4 eligibility requirements, see the NSW Government PDRS Rule and changes.

BESS5 – Commercial & Industrial

BESS5 is designed for larger commercial and industrial battery systems with a usable capacity greater than 200 kWh and up to 30 MWh.

The incentive applies to the first 10 MWh of eligible battery capacity.

BESS5 projects have additional technical requirements, including battery testing, network connection and demand response requirements.

It is suited to manufacturing, industrial facilities, large commercial buildings, distribution centres, agricultural operations and other high-energy-use businesses.

For the full BESS5 eligibility requirements, see the NSW Government PDRS Rule and changes.

How Does the Rebate Work?

The BESS4 and BESS5 incentives are delivered through Peak Reduction Certificates (PRCs) rather than a fixed-dollar rebate, so the value will vary depending on your project, system design and the applicable PDRS methodology. PRC market prices can also change over time, meaning every business will have a different potential incentive.

Why Hardy Solar?

With more than 10 years of experience, Hardy Solar has delivered solar and battery solutions across commercial, industrial, council and government sites throughout Northern NSW and South East Queensland.

From retail and hospitality to manufacturing, large commercial facilities, community projects and government sites, our team has experience across a wide range of project sizes and energy requirements.

Considering a commercial battery or new solar and battery system? We'll help you understand the available incentives, expected ROI and payback timeframe, while taking your business's energy and sustainability goals into account.

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See some of our commercial projects in our Business Case Studies, or get in touch with Hardy Solar for a commercial battery assessment to discuss your project, available incentives, ROI and payback timeframe.