Key information
- Status: open now
- Grant amount: up to $30,000 to cover up to 75% of the project costs
- Application closing date: Monday, 13 October 2025 at 5 pm (AEDT) or earlier, if funding is exhausted
- Total funding amount: $1 million
Heat pumps are an effective solution to cut costs and decarbonise heating systems. Switching to heat pumps can benefit your businesses in many ways, including:
- lowering energy costs
- avoiding volatile global energy prices
- reducing carbon emissions.
Discover energy savings that were identified during our Heat Pump Feasibility pilot program.
About the Heat Pump Feasibility Grant
The Heat Pump Feasibility Grant is a great opportunity for eligible NSW businesses to assess whether a heat pump is a feasible option for your site. You can apply for up to $30,000 to cover 75% of the project costs.
What’s included in the grant funding
The grant provides funding to help you work with a specialist consultant who will first assess your site for any major barriers to installing a heat pump. If these barriers can be overcome, you will receive funding for a detailed feasibility study. This will help you make an informed decision about whether a heat pump is the right fit for your site.
The grant includes 3 milestones:
- Milestone 1: Up to $5,000 to cover up to 75% of the cost to identify if a heat pump is suitable for your business site. This is an opportunity to identify potential barriers to heat pump implementation and assess possible solutions. The results of milestone 1 will determine your progression to milestone 2.
- Milestone 2: Develop the heat pump design against the site’s current process requirements. There is no payment of Grant funding at milestone 2.
- Milestone 3: Up to $25,000 (covering up to 75% of costs) to develop a detailed heat pump feasibility study (for milestone 2 and 3).
For full details about what is included and what is not, please read the funding guidelines (PDF, 637KB).
Who can apply
To be eligible for this Grant, you must meet all the following criteria:
- You have an Australian Business Number (ABN) and are registered for goods and services tax (GST).
- You are delivering your heat pump project at a NSW business site address.
- You use between 5,000 and 100,000 gigajoules (GJ) of gas (liquified natural gas, liquified petroleum gas, natural gas) per year at your business site, excluding fuel for transport. You must be able to provide evidence of your annual gas use, such as energy bills. You must submit the most recent available evidence, no more than 2 years old at the time you apply.
- You have identified a specialist consultant(s) to complete the Grant milestones.
You are not eligible for this Grant if you:
- are a Commonwealth, state or local government entity
- have already been approved for this Grant funding
- have received or are going to receive funding from the NSW Government for the same activities.
For more information on the full eligibility and assessment criteria, please read the funding guidelines (PDF, 637KB).
How to apply
Read the funding guidelines
To help you prepare an application, make sure you read the funding guidelines in full. These guidelines provide full details about the grant and selection requirements.
Download the funding guidelines (PDF, 637KB)
Submit your application online
Applications for the grant are now open. The application period will close on Monday, 13 October 2025, at 5 pm (AEDT) or earlier, if funding is exhausted.
You must submit your application using our grant management system.
Applications will be assessed as they are received.
For more information about the funding agreement, please see our sample funding deed (PDF, 429KB).
If you have any questions about the grant, please contact us at [email protected].
AstraZeneca will reduce boiler energy use by 33.8%
Pharmaceutical company AstraZeneca participated in our pilot program to conduct a heat pump feasibility study at their Sydney manufacturing plant. At the completion of the project, Nathan Collett, Senior Environmental Engineer at AstraZeneca said:
"The heat pump will reduce our energy consumption by 33.8% compared to our current boilers. The feasibility study supported our business case for this investment, and we look forward to installing the heat pump in the next couple of months."
Discover what AstraZeneca learned through their feasibility study and how it guided their decision to proceed with heat pump installation.
As part of AstraZeneca's sustainability targets, we'll be reducing our Scope one and Scope 2 emissions by 98% from our 2015 baseline before 2026.
AstraZeneca's been manufacturing for over 50 years. Our pharmaceutical operations site is located in North Ryde, Sydney.
We produce liquid sterile products using blow-fill-seal technology.
In order to reach our targets, we need to replace our gas boilers on site.
Initially we did not have the internal expertise on alternative options and we also had to be mindful that we operate in a very built up area.
We then had the opportunity to join the NSW Government's Heat Pump Feasibility Pilot, which provided both funding and expert guidance.
As part of the feasibility study, we considered using heat pumps to replace some of the functions of the boiler.
That included providing high temperature and high pressure steam for our processed water, integrating the heat pump with some heat exchangers to support our heating, ventilation and air conditioning system, as well as providing steam for our autoclave.
HVAC hot water emerged as the best option and became the focus of this feasibility study.
The feasibility study included a site assessment, learning about heat pumps and their applications, as well as collecting data. Robust data allowed us to understand our heat loads, temperature differentials and seasonal usage.
The study showed that a heat pump is a highly viable option from a technical perspective.
We estimate the heat pump will reduce our energy consumption by 33.8% compared to our current boilers.
We plan to leverage an incentive under the NSW Energy Security Safeguard to cover part of the capital cost of the heat pump. This will help us pay it back within five years.
We secured capital funding based on this feasibility study.
As part of this project, we've had a team uplift in our understanding of heat pumps.
I encourage other businesses to see similar opportunities to drive sustainability and cost savings.
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