BESS5: The New Battery Incentive Tailored to Large Energy Users
If your large commercial and industrial (C&I) operations carry significant peak demand exposure, there is now a genuine, government-backed pathway to help fund a battery large enough to make a real difference to your energy bills.
What is BESS5?
BESS5 is a new activity under the NSW Peak Demand Reduction Scheme (PDRS), extending incentives to large-scale batteries for the first time. It covers systems from over 200 kWh right up to 30 MWh, with the incentive capped at the first 10 MWh (10,000 kWh) of capacity.
What's involved in a BESS5 application
Because BESS5 systems operate at a much larger scale, the process is more technical than a standard rebate application. Nectr's commercial team offers:
- End-to-end technical scoping, including UL9540A compliance
- Licensed installation and DRA (Demand Response Aggregator) setup
- Commercial structuring and ROI modelling to help large energy users assess feasibility ahead of the scheme's launch
Stacking incentives for larger returns
BESS5 can potentially stack with other incentives, including Large-scale Generation Certificates (LGCs) for solar installed alongside the battery, and the NSW Energy Savings Scheme (ESS) for businesses bundling in wider efficiency works. Standard business tax depreciation may also apply, subject to individual accountant advice.
Next steps
Given the scale and technical requirements involved, early engagement is key. Nectr recommends large energy users seek independent advice to confirm which incentive combinations apply to their specific site and circumstances, and to begin technical scoping well ahead of summer demand peaks.
Note: Eligible customers should seek independent advice to confirm which incentive combinations apply to their specific circumstances.
Ready to find out what BESS5 could mean for your site? Speak to Nectr's commercial team to find out more.
