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New South Wales Energy Upgrades
New South Wales Energy Upgrades
Energy Savings Scheme
What is ESS?
The Energy Savings Scheme in NSW lowers electricity usage by providing financial incentives to homes and businesses to undertake energy-saving projects. These energy savings are realised by installing, upgrading, or replacing energy-efficient equipment.
Under the NSW Electricity Supply Act of 1995, the Energy Savings Scheme was established in 2009 and ever since its inception, the ESS has facilitated energy savings exceeding 21,000 gigawatt-hours in both residential and commercial settings. As per government projections, the program is anticipated to generate savings totaling $3 billion over the coming decade.
Each year, the government revises and enhances the ESS to enhance its efficacy and introduce new energy-saving methods. While its initial iterations primarily emphasised the adoption of LED lighting, the program has now expanded to encompass a diverse range of energy-saving projects and initiatives.
Who Manages ESS?
NSW legislation regulates the Energy Savings Scheme. It mandates that Scheme Participants obtain and turn in energy savings certificates. The Office of Environment and Heritage and Department of Planning and Environment, Division of Energy, Water, and Portfolio Strategy are responsible for the development of the policy framework. Additional details are available at:
How Does ESS Work?
With the Home Energy Efficiency Retrofits approach, the ESS Rule allows for immediate deeming of energy savings from upgrades performed at residential and small business sites, including the replacement of inefficient lighting.
Home Energy Efficiency Retrofit (HEER) activities under the ESS are only available from Accredited Certificate Providers (ACPs) and are designed to help households and small businesses in New South Wales (NSW) save energy through the installation of energy-efficient lighting, appliances, and other measures.
ACPs are organisations authorised by the Independent Pricing and Regulatory Tribunal (IPART) to carry out energy efficiency measures. The ACPs have the option to either conduct HEER activities on their own or subcontract them to external third-party installers, like electricians. ACPs operate autonomously and are not considered as employees or agents of the NSW Government.
The NSW ESS works by creating a marketplace for energy savings certificates (ESCs). The ESCs are generated when a property owner chooses an upgrade or installation that lowers their overall electricity consumption. One ESC shows that one Megawatt-hour (MWh) of energy has been saved. Energy retailers are obligated to purchase a specific quantity of ESCs annually as part of their commitment under the program.
Businesses and households are encouraged to engage in energy-saving measures because they can earn money by selling these certificates. The value of these certificates can vary widely, potentially reaching hundreds or even thousands of dollars, depending on the amount of energy saved.
In order to conduct the upgrade and generate ESCs, the original energy saver must nominate an ACP as the energy saver. Only one nomination per upgrade is allowed, and it must be submitted before the job is finished. The ACP or their authorised representatives must handle all equipment installations to guarantee safe execution by certified and trained technicians.
The ESS Rule also outlines specific conditions for the kinds of lighting permissible under this program. Some lighting products must receive approval from IPART before they can be used in an upgrade.
The HEER Lighting Requirements page has more details on how ACPs who are accredited to implement the Home Energy Efficiency Retrofits method can submit an application to have their equipment approved.
Benefits
Between 2009 and 2020, the program supported millions of initiatives that are projected to result in $6.9 billion in bill savings and 37,000 gigawatt hours (GWh) of energy savings by 2030.
By the end of 2020, the program had reduced greenhouse gas emissions by 17 megatonnes. That is the amount of carbon emissions produced by the transport sector in NSW in 2020.
Energy-efficient products are designed to do more with fewer energy units.This reduced energy consumption not only lowers utility bills for consumers but also helps reduce the overall carbon footprint of homes and businesses by decreasing the demand for fossil fuels.
Before the introduction of the ESS, transitioning from outdated fluorescent tubes to more efficient LED lights was prohibitively costly, especially for larger buildings. But with ESS support, you can now save up to 80% of the total upfront costs when you make the upgrade. Plus, you’ll keep saving money on your electricity bills for many years after the upgrade
The energy-efficient products installed under the NSW ESS program tend to have longer lifespans and experience fewer breakdowns. Their improved reliability means less need for frequent repairs or replacements, which, in turn, translates into further savings for homeowners and businesses.
Energy-efficient solutions consume less energy to perform the same tasks, which means fewer harmful gases are released into the atmosphere. This contributes to a cleaner environment and mitigates the impact of climate change.
Providing efficient energy consumption at a reasonable cost is ESS’s top priority. The NSW government set more ambitious targets this year to further explore additional energy-efficient possibilities in New South Wales. The Energy Savings Scheme has set an energy savings goal of 9.5% for 2023, which will be raised to 13% by 2030.
By increasing the target, homes and businesses in NSW will be able to reduce their emissions at a lower cost. This will also help NSW cut its emissions by 70% by 2035 and reach net zero by 2050.
Check Your Eligibility
All homes and businesses in New South Wales with outdated lighting technologies like incandescent bulbs, mercury halide, fluorescent tube lights, or halogen down-lights are eligible to join the program. Terms and conditions may apply.
You can always reach out to us and check your eligibility.