NSW's New Commercial Battery Rebate: BESS4 Explained

If you run a business in the Northern Rivers and you've been putting off a commercial battery because the numbers didn't quite stack up, 1 September 2026 changes that. The NSW Government is opening its Peak Demand Reduction Scheme (PDRS) up to commercial-scale batteries for the first time, through a new activity called BESS4. For eligible small and medium businesses, this can knock a genuine chunk off the upfront cost of a battery, not through a one-off grant, but through tradeable certificates generated over the life of the system.

We've had a lot of local business owners ask us about this since the announcement, so we've put together a plain-English rundown of what BESS4 actually is, who qualifies, roughly what it's worth, and what to do before the start date.

Quick answer

BESS4 is a new PDRS activity starting 1 September 2026 for battery installations at small and medium NSW businesses, sized between 20kWh and 200kWh of usable capacity. It creates Peak Reduction Certificates (PRCs) that an accredited provider can convert into an upfront discount, typically somewhere between 20% and 50% off the fully installed cost, depending on system size, whether new solar is installed alongside it, and the certificate price at the time. There's also a related activity, BESS5, for larger systems above 200kWh, which we cover further down.

What is BESS4, and why is it new?

The PDRS has been around for a while, rewarding upgrades that reduce demand on the grid at peak times. Until now, it hasn't extended to battery installations at business premises. BESS4 changes that, giving small and medium businesses a dedicated pathway to earn certificates for installing a battery behind the meter.

The certificates created under BESS4 are Peak Reduction Certificates, or PRCs. They aren't a fixed rebate. Like STCs on the residential side, they have a market value that moves with supply and demand, and an accredited certificate provider handles the paperwork and applies the value as a discount at the point of sale, so there's nothing extra for you to manage.

Is your business eligible?

BESS4 is built for the kind of premises we see every week around Ballina, Lismore and the wider Northern Rivers, offices, retail shops, warehouses, workshops and hospitality venues. Broadly, to qualify your project needs to meet the following:

• The site must not be a residential building or a data centre
• Usable battery capacity must be greater than 20kWh and no more than 200kWh
• The battery and inverter must be listed on the Clean Energy Council's approved product list
• Installation must be carried out by an SAA-accredited installer, in line with AS/NZS 5139
• The site must not have already received a BESS4 or BESS5 incentive
• Installation must take place on or after 1 September 2026

If you're planning to add new solar alongside the battery, there's a sizing rule to be aware of too: the new solar capacity (in kW) needs to be more than a quarter of the battery's usable capacity (in kWh) to unlock the higher incentive rate. Battery-only installs are still eligible, just at a lower rate.

How much is BESS4 actually worth?

Because the incentive is certificate-based rather than a flat dollar figure, the exact value depends on your system size, the certificate price at settlement, and whether you're pairing the battery with new solar. As a rough guide, published modelling suggests a 100kW/200kWh battery installed alongside 100kW of new solar, at around $220,000 fully installed, could see roughly $65,000 come back through the incentive. That's close to a 30% discount, with a payback period commonly landing in the two to four year range once the ongoing savings from reduced demand charges and better self-consumption are factored in.

Every site is different, and certificate prices move, so we always recommend treating these as indicative figures rather than a quote. We'll run the actual numbers for your business once we understand your usage patterns and site.

What if your battery is bigger than 200kWh?

Larger commercial and industrial batteries, from 200kWh up to 30,000kWh, sit under a related activity called BESS5. The requirements are similar in spirit, no residential or data centre sites, the same solar sizing rule if you're adding new panels, and installation by a suitably licensed person. The main technical difference is that BESS5 batteries need to be tested to the UL9540A fire safety standard, and certificate creation is capped once the battery's usable capacity passes 10,000kWh. If you're looking at a system in this range, we'd want to talk through your project in more detail, since the scoping and approvals process looks a bit different to a standard BESS4 install.

Why battery, and why now

Beyond the incentive itself, a commercial battery does a few jobs at once for a Northern Rivers business. It lets you use more of the solar you're already generating instead of exporting it for a low feed-in credit, it can shave the demand charges that spike your bill when several pieces of equipment run at once, and it gives you backup power through the grid outages that aren't uncommon in this region during storm season. BESS4 doesn't change any of that value, it just makes the upfront cost easier to justify.

How ModEnergy can help

We're a Northern Rivers business too, and we've spent the last decade helping local homes and businesses get the most out of solar and battery storage, always with honest advice about what's genuinely right for a site rather than a one-size-fits-all system. For BESS4, that means we'll walk your premises, look at your actual electricity usage, and give you a straight answer on whether a battery makes sense for your business, what size suits your load profile, and roughly what you can expect back once the certificate value is applied. If your business is elsewhere in the Northern Rivers, our commercial solar page has more on how we approach these projects.

Frequently asked questions

When does BESS4 start?

Installations need to occur on or after 1 September 2026 to be eligible. Projects installed before that date won't qualify, even if they'd otherwise meet the criteria.

Does my business need solar as well as a battery?

No, a battery-only installation is still eligible under BESS4. Adding new solar in the right ratio to your battery size unlocks a higher incentive rate, but it isn't compulsory.

Can BESS4 be combined with other rebates?

For eligible systems up to 100kWh, BESS4 can be stacked with the federal Cheaper Home Batteries Program, which adds further value on top of the NSW incentive.

How is the incentive paid?

An accredited certificate provider creates and sells the Peak Reduction Certificates generated by your system, then applies that value as an upfront discount on your installation, similar to how STCs work for residential solar.

What size battery qualifies?

BESS4 covers usable battery capacity greater than 20kWh and up to 200kWh. Larger systems fall under the related BESS5 activity instead.

Get ahead of 1 September 2026

With a new incentive like this, we expect strong interest from businesses across the region once the scheme opens. If you'd like to know whether your premises would qualify for BESS4, or what size system would suit your usage, give ModEnergy call on 02 6680 9983 or get in touch through our contact page. We'll give you a straight answer on whether it stacks up for your business, and help you plan the project so you're ready to install as soon as the scheme commences.