The Department of Climate and Energy Action in NSW has issued a notice regarding essential changes to the PDRS, effective three months after the final rule’s publication in April 2024.
Restrictions on Heat Pump Incentives
The amendment updates the activity definition of WH1 to stop large heat pump water heaters from being eligible for Small-Scale Renewable Energy Scheme (SRES) incentives. This means:
- Large heat pumps can receive ESS and PDRS incentives
- Small heat pumps can receive ESS and SRES incentives
The modification aims to prevent the stacking of incentives across different schemes, which raises concerns regarding high-pressure sales tactics. The WH1 activities account for 86% of PDRS certificates, leading to a significant certificate surplus from smaller heat pumps and indicating that PDRS incentives are not required to encourage small commercial heat pump upgrades.
Elimination of Underutilised Activities
The amendment removes RF1 (fridge freezer) and SYS1 (motors) definitions where no activity has occurred. This is intended to optimise the scheme’s effectiveness and prevent these dormant activities from becoming active, limiting the uptake of future demand response and shifting activities.
Why It Matters
The updates are designed to ensure the PDRS’s effectiveness and goals of managing peak energy demand and promoting sustainable energy practices. By refining incentive qualifications and removing inactive activities, the scheme can better support significant energy-saving measures.
For EnergyAE and those within our wider network, these updates are essential to ensure compliance and to optimise the benefits of participating in this scheme.
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