Can you claim PRCs if there are existing batteries on site?

PRCs cannot be claimed under BESS1 and BESS3 if there is already a battery storage system on-site. You can claim PRCs under BESS4 and BESS5 if there are existing batteries on-site, provided that no BESS activity has been previously claimed at that site.

Do you require a solar PV system to be installed in order to be eligible?

BESS1 requires a behind-the-meter solar PV system to be installed at the same NMI as the battery system. BESS3, BESS4 and BESS5 do not require a solar PV system to be installed, however, incentives may be higher where a battery is installed within 90 days of a new solar PV system being installed.

How does the PRC market work?

What does PRC historical pricing look like?

The PRC market is governed similarly to the NSW Energy Saving Certificate (ESC) market. Each year, there is a PRC target that is the approximate number of certificates liable entities will have to surrender to meet their obligations. In the event of a market oversupply, depressed pricing is relatively routine, and conversely in periods of undersupply pricing tends to edge towards the tax-effective penalty rate per PRC. This rate is currently set at $2.66, which places the tax effective penalty rate at approximately $3.45.

Historically PRCs have traded as low as $0.90, and as high as $3.60. Given the market is still in a stage of relevant infancy compared to other green markets, and is subject to strong regulatory intervention, PRCs have historically seen significant volatility within the spot and forward markets.

Are projects with Arena funding eligible?

If NSW Government funding has been received for the installation of the new solar PV system, you are not eligible for the higher solar + battery incentive rate. Instead, you must use the lower battery-only incentive rate.
There are no explicit exclusions regarding other federal grants or external funding.

We’re bringing 20MW of capacity online over the coming calendar year. Is there a way to fix the certificate price or lock in a rate?

Currently we are awaiting additional confirmation on the intention of when implementation/activity dates are set, and the DNSP approval requirement.

Both of these requirements have the potential to have a large impact on when PRCs will be able to be registered from a project. Once clarity is gained, a PRC rate is able to be locked in.

Do you have any guidance as yet as to the documentation requirements that we would need to close a project?

At this point in time, the requirements for site and project eligibility are firm however, the exact evidence requirements are still in the process of being finalised. A preliminary list subject to final guides indicates the following will be required:

• • All planning, development and connection approvals
  • Invoice 
  • Electricity Bill 
  • Geotagged images of the BESS components, entire system, Solar PV, switchboard and location
  • Installer selfies 
  • Appropriate licences 
  • Certificate of Compliant Electrical Works (CCEW) 
  • Nomination Form and consumer fact sheets

What is the definition of “usable battery capacity”?

For BESS3 and BESS5, this is defined as the lesser of:

• • Usable Battery Capacity; or
  • Four hours multiplied by the Battery Inverter Output, or
  • 10,000 kWh (For BESS5)

For BESS4, Battery Capacity is defined as the lesser of:

• • Usable Battery Capacity; or
  • Four hours multiplied by the Battery Inverter Output

‘Usable Battery Capacity’ is defined as 90% of the Nominal Battery Capacity as listed on the CEC Approved Battery list. Battery Capacity is the input used for PRC calculations.

What is the evidence requirement for BESS to be “controllable by a Demand Response Aggregator”?

This requirement needs a BESS to have the ability to be controlled by a DER Aggregator. This can be evidence that the inverter that controls the battery is able to be internet connected and can be controlled. For example, a data sheet or fact sheet showing the make and model of installed battery or inverter, and includes that it is control capable, or an extract from a DRA’s compatible equipment list.

Does “New Solar PV Capacity” refer to AC rating or DC rating?

New Solar PV Capacity refers to DC capacity and is used to determine eligibility, but does not directly affect the PRC calculation.

New Solar PV Capacity must not be less than a quarter of the Usable Battery Capacity (i.e. 90% of the Nominal Battery Capacity as listed on the CEC Approved Battery list.)

Which buildings are eligible, and which are excluded, under BESS3?

To be eligible for BESS3, the site must be a Class 2 residential building containing a minimum of four individual dwellings.

The following sites are ineligible:

• • Townhouses or villas
  • Sites with existing BESS

How is the incentive capped in relation to building size for BESS3?

Incentives are capped at 5kWh per individual dwelling.

For example, a 12-dwelling building can receive PRCs for up to a 60kWh BESS.

Where should the BESS be installed for BESS3?

The BESS must be installed outdoors in a well-ventilated area.

What is the mandatory customer co-payment for BESS3?

The customer must make a minimum payment of at least $1,000 (excluding GST) for the battery system, installation, and assessment. This cannot be reimbursed, and no non-cash inducements can be offered to reduce the contribution.

The co-payment does not apply to implementations delivered through a Low-income Energy Program.

Is there a difference in the formula between BESS4 and BESS5?

Yes, there are differences in the formulas used for BESS4 and BESS5.

Use our BESS PRC Estimator to calculate and compare the two.

Would the delay in DNSP Approval risk the job passing its expiry date, under BESS4?

We are still working with the NSW Government to clarify whether DNSP pre-approval is sufficient.

Which businesses are eligible, and which are excluded, under BESS4?

Small and medium businesses installing behind-the-meter battery energy storage systems between 20kWh and 200 kWh are eligible.

Residential buildings and Data Centres are ineligible under BESS4.

Under BESS4, can I install a 20kWh BESS and claim PRCs, then 12 months later install another 20kWh BESS and claim PRCs for the second system?

No, BESS installations can only be claimed once per site.

Which batteries are eligible for BESS4?

Battery systems must meet the following criteria to be eligible:

• • Listed on the Clean Energy Council’s approved battery list. For modular systems, eligibility is based on the approval of individual battery modules. This means a combined system does not need to be separately registered, provided each module is on the approved list.
  • The battery’s Usable Capacity must not exceed six times the Battery Inverter Output.
  • The battery must be internet connectable and controllable by a Demand Response Aggregator to ensure VPP orchestration capability.
  • All equipment (excluding inverters installed prior to the installation date) must carry a minimum 10-year warranty that guarantees at least 70% capacity retention 10 years from the installation date.

What is the mandatory customer co-payment for BESS4?

The customer must make a minimum payment of at least $5,000 (excluding GST) for the battery system, installation, and assessment. This cannot be reimbursed, and no non-cash inducements can be offered to reduce the contribution.

Can I install a BESS larger than 10MWh, under BESS5?

Yes, the incentive threshold for BESS5 is 10MWh, but up to 30MWh is eligible to be installed, as long as all requirements are also met.

What is the mandatory customer co-payment for BESS5?

There is no co-payment published at this time, and it remains an open question with policy makers

What is the “quarter-capacity” matching rule for solar and battery sizing, under BESS5?

If you are installing solar+BESS, New Solar PV Capacity (kWp) must not be less than 25% of the battery’s Usable Battery Capacity.

What standards and approvals are required for BESS5?

• • Development Application (DA)
  • Network approvals and compliance with the local DNSP connection and commissioning requirements
  • UL 9540A, a standardised testing method used to evaluate the fire and explosion hazards associated with thermal runaway in Battery Energy Storage Systems (BESS)