The scheme
What the scheme actually rewards
The PDRS creates Peak Reduction Certificates (PRCs) for cutting electricity demand during the scheme's defined peak window. A battery earns them by reducing demand in that window, and the certificates can be created for a forward period rather than a single year — which is what makes them material to a capital case. The dollar value is, broadly, the number of certificates a project qualifies for multiplied by their market price.
★ Key takeaway — PRCs reward demand cut in the scheme's peak window, created for a forward period — that's what makes them material.
The catch
Why the number hinges on qualifying reduction
The value does not come from the battery's size on paper; it comes from the qualifying peak reduction the scheme recognises — demand actually cut in the right window, measured the scheme's way. A large battery dispatched outside the peak window, or against the wrong baseline, earns far fewer certificates than its nameplate suggests. This is exactly where a vendor's PRC headline and the delivered result tend to diverge.
★ Key takeaway — Value comes from qualifying reduction, measured the scheme's way — not nameplate. Headlines and reality diverge here.
Stacking
It stacks — but don't double-count
PRC value rarely stands alone. The same battery usually also cuts network demand charges and, with new solar, can attract Small-scale Technology Certificates (STCs). The honest case stacks these — but with the same battery capacity serving several jobs, it is easy to count the same kilowatt twice. Each stream has to be credited against the dispatch that actually delivers it, not summed as independent best cases.
★ Key takeaway — Stack PRC with demand charges and STCs — but credit each to the dispatch that delivers it; don't count the same kW twice.
Policy risk
Policy sensitivity belongs in the model
Certificate prices move, and scheme parameters change over time. An incentive that looks decisive at today's price can look marginal at a lower one. A defensible case shows the payback with and without the PRC contribution, and tests how it moves if the certificate price softens — so the decision does not rest entirely on a policy setting outside your control.
★ Key takeaway — Model the case with and without PRC, and test a softer certificate price — don't bet the whole case on a policy setting.
Our view
The independent view
EWISER's position is simple: treat the PRC as a number to be earned and proven, not a headline to be taken on trust. Size the battery on the load, establish the qualifying reduction it can actually deliver in the peak window, value the certificates at a realistic price, and stack them honestly with demand and solar savings. That is what turns 'the scheme improves payback' into an investment-grade figure you can defend — the same analysis that goes into an EWISER Project Analysis report.
★ Key takeaway — Treat the PRC as a number to be earned and proven, not a headline to be trusted.
Frequently asked questions
Is PRC income guaranteed for the life of the battery?
No. Certificate value depends on qualifying peak reduction and on certificate prices, both of which can change. Model the case with and without PRC income so the decision is robust to a softer certificate price.
Does a bigger battery always earn more PRCs?
Not necessarily. Certificates reward qualifying demand reduction in the scheme's peak window, measured its way — not nameplate capacity. A battery dispatched outside the window, or sized without regard to the baseline, under-earns relative to its size.
How does PRC stack with network demand savings?
The same battery can earn PRCs and cut network demand charges, but the two must be credited against the dispatch that delivers each — not summed as separate best cases. Co-optimising them in one model keeps the combined payback honest.
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