Victoria
New South Wales
South Australia
QueenslandOn 1 July 2026, IPART released its latest ESS and PDRS Rule update, introducing several significant changes across activities. This Feature is part of a 3-piece series, including ESS & PDRS Changes: Air Conditioning & HVAC, and ESS & PDRS Changes: Upcoming Activities.
A number of significant changes have been introduced for Battery Energy Storage System (BESS) activities, including several new battery incentives and changes to VPP rules. Ecovantage is very well-established in the C&I space, delivering over 750,000 LGCs to date, as well as thousands of ESCs and VEECs through C&I M&V projects. These new activities open up a huge potential for our clients, reducing the upfront cost of commercial batteries and bringing forward the viability of projects.
BESS1 – Battery Installations.
Reintroduced with Policy Changes
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- BESS1 activity is reintroduced for limited use cases
- BESS1 incentives can now be stacked with STCs through the Federal Cheaper Home Batteries Program for approved target sectors:
- NSW State and Local Government sites.
- Approved exempt energy programs.
- Additional government and network-run programs may become eligible over time.
Potential Incentive Examples*
| 16.6 kWh Battery | 28 kWh Battery |
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These changes mean more customers can access combined State and Federal battery incentives, increasing project value. BESS1 continues to be unavailable for general residential consumers outside of the above categories.
BESS2: Virtual Power Plant (VPP).
Policy Changes
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- Nomination forms can now be signed up to 90 days after onboarding (before certificate creation).
- Maximum eligible battery size increased from 28 kWh to 50 kWh.
- Incentives remain capped at 28 kWh.
- Solar is no longer required.
- Normal-use warranty requirements have been removed (minimum warranty protections remain).
- Battery calculations will now use 90% of nominal battery capacity for all approved batteries, instead of CEC useable capacity values.
Potential Incentive Examples*
| 20 kWh Battery | 42 kWh Battery |
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With greater flexibility for eligibility, more systems qualifying, and a consistent approach to battery sizing across manufacturers, these changes represent a broad and positive change for consumers.
BESS3: Batteries for Apartments.
New Activity
Eligibility
-
- New battery incentive for Class 2 apartment buildings (minimum 4 dwellings).
- Eligible battery sizes: 20–200 kWh.
- Federal battery rebate can be stacked for batteries under 100 kWh.
- Solar is optional.
- Higher incentive available when installed with new solar.
Commences 1 September 2026
Potential Incentive Example*
| 12 Dwelling Apartment with a 55.56 kWh Battery |
|
This new activity broadens the scope of building eligibility. By allowing the stacking of Federal and State certificates, these incentives will offer a stronger ROI for apartment buildings that have been putting off battery installations.
BESS4: Batteries for Small & Medium Business.
New Activity
Eligibility
-
- New battery activity covering 20–200 kWh systems.
- Federal rebate stacking available for batteries under 100 kWh.
- Batteries must be CEC approved.
- Higher incentive available when installed with new solar.
- Minimum customer co-payment of $5,000.
- Activity can only be completed once per site.
- Must not be a Residential Building or a Data Centre
Commences 1 September 2026
Potential Incentive Examples*
| 200 kWh Battery with 100kW Solar | 100 kWh Battery without Solar |
|
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BESS5: Batteries for Large Commercial & Industrial Businesses.
New Activity
Eligibility
-
- New activity for batteries between 200 kWh and 10 MWh
- eligible capacities are up to 30MWh
- incentives capped at 10MWh
- Battery-only and battery + solar installations eligible.
- Higher incentive available when installed with new solar.
- Batteries must be CEC approved.
- Activity available once per site only.
- Must not be a Residential Building or a Data Centre
- New activity for batteries between 200 kWh and 10 MWh
Commences 1 September 2026
Potential Incentive Examples*
| 2.5 MW Solar with 5 MWh Battery | 5 MWh Battery without Solar |
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Some of these updated and new activities allow for certificate stacking, greatly increasing the total incentive value. With one of the strongest C&I certificate teams, as well as in-house M&V capabilities with a 100% project monetisation record, speak with us to capitalise on your next project.
Some of these updated and new activities allow for LGC/STC stacking with PRCs, greatly increasing the incentive. With one of the strongest M&V capabilities and a 100% project monetisation record, speak with us to capitalise on your next project.
*Note: all certificate and financial values are indicative only and are based on a $2.50 PRC price and $37 STC price.
