A New Opportunity for NSW Businesses

Battery storage is becoming an increasingly useful option for businesses looking to make better use of their solar energy and manage electricity demand.

From 1 September 2026, eligible small and medium businesses in NSW can access a new battery incentive through the NSW Government’s Peak Demand Reduction Scheme (PDRS).

Known as BESS4, the incentive applies to eligible battery systems with a combined usable capacity of more than 20 kWh and up to 200 kWh. Energy Sustainability Schemes

For businesses considering solar and battery storage, the scheme could help reduce the upfront cost of installing a new battery.

What is BESS4?

BESS4 is designed to encourage eligible NSW businesses to install battery energy storage systems that can store electricity and shift when that energy is used.

For example, a business could use solar power during the day to charge its battery, then use that stored energy later when electricity demand is higher.

Battery storage can also provide backup power where the system is designed and installed for that purpose.

The NSW Government says the broader business battery incentive is intended to help businesses reduce electricity costs and make greater use of stored solar energy. NSW Climate and Energy Action

How much is the discount?

The NSW Government currently indicates that eligible businesses could receive:

• Around 20–30% off when installing a battery without new or additional solar
• Around 30–40% off when installing a battery alongside new or additional solar capacity. NSW Climate and Energy Action

These percentages are indicative rather than guaranteed. The actual discount will depend on factors including the battery selected, installation requirements, site location and project costs. NSW Climate and Energy Action

The NSW Government has provided examples of the potential scale of the incentive, including approximately $37,000 for a small business such as a grocery store and $355,000 for a medium-sized business such as a dairy farm. These are government examples and shouldn’t be interpreted as guaranteed savings for individual businesses. NSW Climate and Energy Action

What size battery qualifies?

For BESS4, the combined usable battery capacity must be more than 20 kWh and up to 200 kWh.

The battery must also meet a number of requirements, including being on the Clean Energy Council’s approved battery list and being installed by an installer accredited by Solar Accreditation Australia (SAA). Required planning and network approvals also need to be obtained. Energy Sustainability Schemes

There is a minimum payment of $5,000 per BESS4 implementation. Energy Sustainability Schemes

Businesses with batteries over 200 kWh and up to 30 MWh fall under the separate BESS5 activity for commercial and industrial businesses. Energy Sustainability Schemes

What if your business already has solar?

You don’t necessarily need to install an entirely new solar system to access the higher incentive.

If your business already has solar and wants to qualify for the higher discount, additional solar capacity needs to be installed within 90 days before or after the battery.

The new solar capacity must also be equivalent to at least 25% of the new battery’s capacity. NSW Climate and Energy Action

This could make BESS4 particularly relevant to businesses that already have solar but are looking to increase their energy storage capacity.

Could your business benefit from battery storage?

Battery storage can be relevant to a wide range of businesses, including:

• Retail stores
• Restaurants and cafés
• Warehouses
• Workshops
• Farms
• Offices
• Manufacturing businesses
• Other commercial premises with significant electricity consumption

However, the right battery size and system design will depend on how your business uses electricity.

Factors such as your energy consumption, operating hours, existing solar system, electricity tariff, switchboard capacity and backup requirements all need to be considered.

What happens next?

The NSW Government’s business battery discount is provided through participating installers, with the discount generally shown as an upfront reduction in the installation quote. NSW Climate and Energy Action

For businesses considering battery storage, an assessment of the site’s energy usage is an important first step.

At Zeneco Energy, we can look at your existing solar system, energy consumption and site requirements to help determine whether battery storage could be suitable for your business.

Get in touch with Zeneco Energy to discuss your commercial solar and battery options.

Call us on 0405 338 660 or visit www.zenecoenergy.com.au to book a no-obligation consultation. We’ll run the numbers for your home, confirm your eligibility, and handle the process alongside you.