About the Energy Savings Scheme

Electrician installing new fuse box

What is the ESS?

The NSW Energy Savings Scheme (ESS) cuts electricity and gas use by creating financial incentives for households and businesses to be more energy efficient.  

It does this by making it cheaper for you to invest in an upgrade project to reduce your energy use.

Is your project eligible?

All sorts of equipment and processes may be eligible. They include:

  • lighting
  • heating, ventilation and air conditioning (HVAC) systems
  • motors, fans and pumps
  • compressed air systems and much more.

What next?

Certain government-approved businesses can assist with your energy project.  These approved suppliers are known as Accredited Certificate Providers, or ACPs.

Before you begin any modification or upgrade, contact an ACP in your region. They will:

  • explain the process
  • get you the incentive.

You have the option to:

  • work with your own preferred tradespeople by getting them to contact an approved supplier
  • work with tradespeople proposed by the approved supplier.

You may need to measure your energy use before and after an upgrade. This can be done by submetering or checking your energy bills.

How does it work?

Approved suppliers work out how much energy you will save if you go ahead with the upgrade. They calculate the savings and convert them into Energy Saving Certificates (ESCs), which are sold to energy retailers.  Some of the money from selling ESCs is then returned to you as an upfront discount or a pay out at a later stage.

Who are Accredited Certificate Providers (ACPs)?

ACPs are voluntary participants in the ESS, who are accredited to create Energy Saving Certificates (ESCs). Contact an ACP before the start of your project to make sure you get the timing right and don’t miss out.

What are Energy Savings Certificates (ESCs)?

ESCs are the 'currency' of the scheme. They are calculated based on the MWh of energy saved by an eligible energy saving activity. They are then sold to electricity retailers and other liable parties.

Are you planning multiple projects?

Businesses planning several projects may consider becoming approved suppliers themselves. Becoming an approved supplier means you can create and sell ESCs, and get the highest returns. It also means you can offer discounted projects to your clients.

Accreditation comes with obligations. These include record keeping requirements and costs.

For more information on how to become a supplier, visit ‘How to apply for accreditation’ page.