A NSW Government website

About the Energy Savings Scheme

The Energy Savings Scheme is NSW’s largest energy efficiency program. It provides households and businesses with financial incentives to improve the energy efficiency of their equipment and appliances. It will run until 2050. 

The scheme sets an energy savings target for electricity retailers and large users. To meet their target, retailers and large users create or buy energy savings certificates (ESCs) for eligible activities, such as the purchase of a more efficient appliance. 

Each certificate represents 1 megawatt-hour (MWh) of energy saved. 

The Energy Savings Scheme Rule (ESS Rule) details how certificates are created. 

The current ESS Rule is effective from 14 April 2023. 

The requirements for creating certificates are set out in the rule. We consult with industry stakeholders regularly to ensure the rule remains relevant to current technical and market conditions. 

We are committed to updating the ESS Rule on an annual basis.

How we developed the Energy Savings Scheme

The scheme was established in 2009 under the NSW Electricity Supply Act 1995

We review the scheme every 5 years. In December 2020, we increased the energy savings targets for the years 2022 to 2025 and set new targets for the years 2026 to 2050.

In September 2021, we announced the expansion of the scheme to introduce financial incentives for the agricultural and industrial sectors to switch to renewable fuels.