The NSW Energy Savings Scheme (ESS) provides financial incentives to install energy efficient equipment and appliances in NSW households and businesses. Using more energy efficient equipment puts downward pressure on electricity prices for all NSW households and businesses by reducing electricity demand.
The Energy Savings Scheme was established in 2009 under the NSW Electricity Supply Act 1995 and has been highly successful at delivering energy and bills savings. Between 2009 and 2020, the scheme has supported projects that will deliver $6.9 billion in bill savings and 37,000 gigawatt hours (GWh) of energy savings by 2030. As of December 2020, the scheme has reduced greenhouse gas emissions by 17 megatonnes. That equals the carbon emissions produced by the NSW transport sector in 2020.
Our aim is to deliver cost effective energy savings. We recently set more ambitious targets to help unlock additional energy efficiency opportunities in NSW. The Energy Savings Scheme has an energy savings target of 9.5% in 2023. This will increase to 13% by 2030.
Increasing the target will help make emissions abatement available at a lower cost to NSW households and business, as well as helping NSW to reduce emissions by 70% by 2035 and achieve net zero by 2050.
We set out how certificates are created and what specific activities are included as part of the scheme through the publication of the Energy Savings Scheme (ESS) Rule. This is updated on an annual basis. Recent changes have expanded the range of eligible activities.
The 2023 Energy Savings Scheme Rule change part 1 consultation
The Energy Savings Scheme is updated annually. This year, we are doing the rule change in two parts. Part 1 of the consultation is now open. It focuses on the revision of the baseline used to calculate energy savings for hot water systems as well as co-payments.
The current Energy Savings Scheme Rule
The current ESS Rule is effective from 14 April 2023.
The key changes include:
- adding incentives to switch to new fuels such as biofuel, biogas and other renewable sources like solar powered irrigation
- a process to allow for non-routine events and adjustments due to unforeseen events such as the impacts of the COVID-19 pandemic.
You can read more about the changes in:
- the position paper
- non-routine events and adjustments (NRE-A) requirements
- sample study on NRE-A requirements.
We consulted on the 2022 ESS Rule change in October and November 2022.
We look forward to collaborating with industry through targeted research, stakeholder engagement, and prototyping activities. We will provide regular updates about these activities on our website and via email.
For more information about the Energy Savings Scheme, email us at [email protected].
Thank you for submitting your interest.