The NSW Energy Savings Scheme (ESS) is a state-run program that offers incentives for households and businesses to reduce their energy use through eligible upgrades. Since 2009, the ESS has been a cornerstone of NSW’s energy policy, helping residents save money, reduce emissions and transition to more efficient technologies. For installers, property developers and suppliers like Odisee, the scheme is a big opportunity to deliver rebate-ready, compliant solutions in a growing energy conscious market.
Whether you’re looking for “NSW ESS program”, “NSW ESS eligibility” or just want to understand “energy rebates NSW” this guide has you covered.
What is the NSW ESS Program?
The NSW Energy Savings Scheme (ESS) is a market based program that rewards energy saving activities with tradeable certificates called Energy Savings Certificates (ESCs). Each ESC represents one megawatt-hour (MWh) of electricity saved. The scheme is designed to reduce NSW’s overall electricity demand and support the transition to net zero emissions by 2050.
Established under the NSW Electricity Supply Act 1995, the ESS aims to:
- Create financial incentives for energy efficiency upgrades
- Lower electricity bills for households and businesses
- Reduce the need for new energy infrastructure
- Complement national emissions reduction schemes
The scheme operates under the broader NSW Energy Security Safeguard, alongside the Peak Demand Reduction Scheme (PDRS) and is managed and regulated by the Independent Pricing and Regulatory Tribunal (IPART).
Who is eligible for the ESS?
One of the benefits of the ESS is its broad eligibility. The scheme supports:
Households
- Homeowners and renters (with landlord consent)
- Properties in NSW
- Upgrades through an Accredited Certificate Provider (ACP)
Small Business
- NSW based businesses with an ABN
- Properties that meet the Building Code of Australia (BCA) definitions for commercial premises
- Can use simplified methods such as HEER (Home Energy Efficiency Retrofits) and IHEAB (Installation of High Efficiency Appliances for Business)
Large Business and Industrial Sites
- Industrial operations and large energy users
- Typically use complex Measurement and Verification (M&V) methods like PIAM&V or MBMThe program rewards actual energy savings so both new installations and equipment replacements may qualify—although replacement projects often generate more ESCs and higher rebates.
How does the Rebate work?
The ESS doesn’t offer direct government cash rebates. Instead it’s a certificate based system:
- A participating household or business completes an eligible upgrade through an ACP
- The ACP calculates the energy saved and creates ESCs
- The ACP sells these certificates to electricity retailers who are required to purchase and surrender a set number annually
- The ACP uses the revenue to fund the incentive for the customer—usually provided as an upfront discount
This creates a self-sustaining market that financially rewards energy efficiency and reduces the strain on NSW’s energy infrastructure.
What types of upgrades are eligible?
The ESS supports a wide range of Recognised Energy Saving Activities (RESAs), including:
HVAC (Heating, Ventilation, Air Conditioning)
- Split systems, ducted systems, and liquid chillers
- Close-control air conditioning
- Must meet GEMS standards and other performance benchmarks
Hot Water Systems
- Heat pump and solar hot water systems
- Replacements for electric or gas units
- Must meet AS/NZS 2712, AS/NZS 4234 standards
Lighting
- Replacement of inefficient lighting with LEDs
- Public lighting, commercial and residential lighting upgrades
- Must meet AS/NZS 1680, AS/NZS 1158 standards
Refrigeration
- Refrigerated display cabinets and large system modifications
- Must comply with GEMS requirements
Building Envelope
- Insulation, window and door sealing, thermally efficient glazing
Industrial Processes
- Compressed air systems, boiler upgrades, power factor correction
- Verified via M&V methods
Solar Batteries
- Behind-the-meter battery energy-storage systems (typically 6 – 15 kWh lithium-ion) that pair with new or existing solar PV to shift consumption away from the grid and cut peak-time demand.
- Incentive delivered through the Peak Demand Reduction Scheme (PDRS) — a sister program to the ESS — as an upfront discount worth roughly $1,600 – $2,400 per system, plus an extra $250 – $400 if the battery is enrolled in a Virtual Power Plant (VPP)
- Battery must be on the Clean Energy Council (CEC) approved battery list, carry at least a 6-year product warranty, and be installed by a CEC-accredited installer
- Installations must comply with AS/NZS 5139: 2019 safety and installation requirements for battery energy-storage systems.
- Large commercial or industrial batteries can still generate Energy Savings Certificates under the ESS when savings are demonstrated through custom Measurement & Verification (PIAM&V or MBM) methods.
Each upgrade type has its own methodology and calculation rules defined in the ESS Rule which is updated annually by the NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW).
What are ESCs and Rebate Value?
The value of your rebate depends on how many ESCs your upgrade generates and the current certificate price on the open market. Some typical examples:
- Air Conditioner Replacement (6kW): Up to $730 discount* New AC Installation (6kW): $340 – $560
- Heat Pump Water Heater: Up to $1,200 depending on size and efficiency
- LED Lighting for Commercial Sites: Up to 90% of total installation cost
ESCs are trading at around $28–$30 each. The total value is calculated as:
ESCs Generated × ESC Market Price = Incentive
Installers or ACPs usually offer this as an upfront discount, although complex commercial projects may have delayed payments or additional contract terms.
How to get the ESS Rebate
For most people, it’s simple:
- Engage an ACP
- Choose an eligible product or service (e.g. heat pump, AC unit, LED lighting)
- Installation is done by a licensed contractor
- ACP submits documentation to IPART and creates ESCs
- Customer gets rebate as an upfront discount
Non-ACP businesses (e.g. installers or builders) can partner with an ACP to get the rebate. Odisee works with ACPs to ensure the products we supply—Rinnai and Midea air conditioners—are ESS compliant.
Compliance and Approved Products
To get ESCs, equipment must:
- Be installed by a licensed and approved contractor
- Meet Australian Standards (e.g. AS/NZS 2712, 1680)
- Be on the GEMS register if applicable
- In some cases, be on an IPART approved product list
Odisee ensures the brands we supply meet these requirements, so you don’t have to worry about rework or compliance issues. We keep up to date with ESS Rule changes, product eligibility and document support so your installations are rebate ready.
Challenges and Market Dynamics
While the ESS works, it’s not without its challenges:
- Renters may not be able to get upgrades unless landlords agree
- Low-income households may still have out-of-pocket costs despite rebates
- Regional access may be limited by ACPs or trained installers
- Installers and developers need to stay across changing eligibility and compliance updatesThe ESS is reviewed annually and policy updated. The next statutory review is due by June 2025 and may include additional electrification incentives and demand-side management tools.
How Odisee Supports ESS Projects
At Odisee we are a trusted partner in the ESS ecosystem. We supply compliant, rebate ready products to installers, ACPs and commercial clients across NSW.
Here’s how we can help your project:
- ESS eligible product supply: Air conditioners, heat pumps and more from leading brands
- Compliance documentation: GEMS listings, spec sheets, performance data
- ACP partnerships: We help non-ACP installers connect with eligible providers
- Bulk pricing and logistics: Supply chain for multi-site upgrades or commercial rollouts
- Expert advice: ESS Rule changes, product selection, installer support
Whether you’re doing residential retrofits or industrial efficiency projects, Odisee has you covered from selection to installation.
Why the ESS Matters and How Odisee Can Help
The NSW Energy Savings Scheme is more than just a rebate—it’s a tool for smarter, lower cost energy use across the state. For households it’s immediate cost relief. For businesses it’s long term energy resilience. For installers it’s bigger projects and new revenue streams.
If you’re an installer, ACP or commercial energy manager looking to deliver compliant, efficient, rebate ready systems Odisee can help.
Get in touch with our team to see our full range of ESS eligible products and how energy efficiency can grow your business.