• NSW PDRS Update: BESS3, BESS4 & BESS5 Changes Effective 7 September 2026
• Certificate Market Prices & Commentary

NSW PDRS Update: BESS3, BESS4 & BESS5 Changes Effective 7 September 2026

Installations for BESS3, 4, and 5 can start immediately (using current factsheets and nomination forms). However, any job with an implementation date on or after 7 September 2026 must comply with the updated IPART rules outlined below.

BESS3: Apartment Buildings

• Co-payment: The $1,000 minimum co-payment applies per BESS application, not per individual battery module.

• Site Boundary: Measured by physical address rather than the NMI.

• System Expansion: Battery expansions are now eligible, provided BESS3 has not previously been claimed at the site.

• Inverter Ratio: Usable capacity (kWh) cannot exceed six times the battery inverter output (kW).

• Load Requirement: Equipment must supply electricity to common property loads and be capable of powering multiple dwellings.

BESS4: Small & Commercial Businesses

• Co-payment: The $5,000 minimum co-payment applies per BESS application, not per module.

• PV Sizing: The requirement for solar PV to be at least 25% of the inverter capacity only applies if new PV is installed alongside the BESS within 90 days (exempts existing solar).

• Inverter Ratio: Usable capacity (kWh) cannot exceed six times the battery inverter output (kW).

BESS5: Commercial & Industrial

• Safety & Testing: Batteries must pass UL9540A performance criteria, supported by a valid test certificate or equivalent.

• Location: Battery systems must be explicitly installed Behind-the-Meter (BTM).

• PV Sizing & Inverter Ratio: Same as BESS4 (25% rule applies only to new PV installed within 90 days; usable kWh capped at 6x inverter kW).

If you have any questions surrounding the PDRS scheme please subscribe to our mailing list via the BESS EOI Form and click here to access our PDRS BESS Estimators.

Weekly Market Update | 29 June – 3 July 2026.

Large-Scale Generation Certificates (LGCs)

The LGC market continues its incline following the planned SRES expansion announcement, suggesting the market is currently more sensitive to the news than STCs. Driven by an expected lack of new sub-1MW power stations and ongoing uncertainty surrounding the REGO scheme, market participants are pricing in tighter supply against steady demand.

LGC spot prices rebounded throughout the week, lifting off last Friday’s $7.25 close to open Monday up to $7.75 before increasing to a peak of $8.10 across mid-week trading. Correction happened late-week down toward $7.50, with a final Friday trade at $7.90 showing strong weekly gain.

The LGC forward market activity pointed to rising momentum across the week as well. Early week trading saw CAL 26 peak at $7.75 and CAL 27 reach $8.00, before further firming on Friday as CAL 26 traded up to $8.00 and CAL 27 stretched as high as $8.30 suggesting a positive price outlook for future trades. 

Victorian Energy Efficiency Certificates (VEECs)

After a quiet Monday with no reported trades, the VEEC spot market opened strongly on Tuesday, with solid volume trading between $85.00 and $86.25. Momentum stayed firm around those levels through Thursday before easing a bit on Friday to finish the week at $85.50. Overall, it was a step up from last week’s $83.00 close.

The VEEC forward market saw strong trading volume across the week, opening on Monday at $84.30 for Jan 27 (25k) before mid-week activity lifted prices, led by Thursday’s Oct-26–Apr-27 strip clearing at $86.50 across 45k. Activity settled on Friday around the $85.75 level across multiple near-term and 2027 delivery dates, including a 10k Jan–Feb 27 strip.

Energy Saving Certificates (ESCs)

Weekly ESC creations closed at 4,672 to bring August’s results to 208,084, reflecting a fourfold surge over July’s 48,194. This momentum was still mainly driven under the HEER method, which accounted for more than 95% of all certificates generated across both months.

The ESC spot market experienced quiet trading early in the week, opening at $29.00 on Monday for a 5k trade followed by a quiet Tuesday and Thursday. Trading resumed on Friday with an increased volume of 35k, and prices simultaneously softened slightly closing the week at $28.70.

Peak Reduction Certificates (PRCs)

PRC spot prices remained firm at $3.35 across 50k parcel trades on Monday, Tuesday, and Thursday, with no trades reported on Friday. Prices held at these levels as market participants priced in the complex compliance requirements associated with the newly launched BESS activities.

PRC creations increased to 2,392,968 in August, more than a three-fold increase from July’s total of 731,069 certificates. Commercial lighting and refrigeration upgrades (RF2) makes up the majority of August creations with 1,496,831 PRCs, followed by commercial HVAC installations (HVAC1) at 651,992. Meanwhile, BESS2 maintained steady, contributing 215,438 certificates to August creations.

Australian Carbon Credit Units (ACCUs)

ACCU spot prices softened overall this week, with No AD slipping 0.39% from last Friday’s $38.90 close to finish at $38.75 on Friday after trading as high as $38.95 on Monday. Generic ACCUs fluctuated throughout, moving up from last Wednesday’s $38.80 level to trade at a peak of $38.90 on Monday before closing the week at $38.80 by Thursday.

Overall trading was made up of No AD trades, which saw steady downward pressure across the week from a high of $38.95 on Monday to $38.75 by Friday.

Small-Scale Technology Certificates (STCs)

STC surplus volumes remained steady at 3.6 million following the government’s final purchase of 1.1 million BSTCs this Wednesday. Despite an anticipated surge in creations following the SRES expansion to systems over 100kW, prices held stable at $39.85.

The market now awaits further technical guidance on additional regulatory adjustments ahead of their October 1 rollout.

Certificates spot prices & graphs available at Market Update >

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.