Improving access to energy efficient appliance upgrades

The Safeguard Acceleration program is cutting energy use and easing pressure on the grid by helping households and small businesses across NSW install more energy-efficient technologies.

Safeguard Acceleration expands the reach of the NSW Government’s Energy Security Safeguard (the Safeguard).

Since the program’s launch in 2022, participating installers have upgraded more than 2,800 air conditioners and 635 heat pump water heaters. The program has delivered 81% of all household upgrades in regional areas by providing incentives to increase the number of installers in harder-to-reach areas. 

Improving the Safeguard in Northern NSW

The Safeguard Acceleration program developed a Certificate Supply Contract targeting Northern NSW, as only 9 air conditioning upgrades had occurred in this region under the Safeguard. Since the new contract commenced in December 2023, 311 installations have occurred. This has enabled households in 85% of this region to access a discounted air conditioner upgrade through the Safeguard.

“Our role is to identify opportunities to expand the Safeguard’s reach and help businesses fill the gaps by providing them with financial support,” explains Brendan Cosgrove, Manager of the Safeguard Acceleration program. “It has taken us a while to figure out the market challenges, but we’re really starting to see the number of installations go up across the state.”

The benefits are clear for both customers and installers. Heat pump water heaters use 60–75% less energy than conventional gas or electric units, significantly reducing emissions and household bills. These upgrades support grid stability by cutting energy demand and help avoid the need for new power infrastructure, creating a win-win for the state and consumers.

Installers who partner with contracted suppliers can secure a higher fixed price for the upgrades they deliver under the Safeguard. This provides financial certainty for installers and allows them to offer customers more attractive discounts. This significantly reduces the upfront cost for customers to install energy-efficient air conditioners or heat pump water heaters.

Since its inception, the program has focused on delivering greater product choice for consumers and installers through the Safeguard. This includes supporting locally manufactured brands like Rheem, Rinnai and Dux through the program.

In turn, this has opened the Safeguard up to a wider network of installers who were previously reluctant to participate because they weren’t able to access incentives for the brands they had longstanding relationships with.

This has enabled new installers to use the incentives provided through the program to offer their customers energy-efficient heat pumps and provide adequate after-care services.

Rhett Bedford from Hot Water Maintenance, Port Macquarie, says, “Safeguard Acceleration’s incentives are a valuable tool for getting customers considering a heat pump water heater over the line. Being able to factor in a discount from the Safeguard Acceleration Program gives me something to work with when I’m putting together a price for a customer,” he says. “This allows me to offer heat pump water heaters to customers at a cheaper price.”

Tim Mellis from Solahart, Newcastle, agrees that the Safeguard has made the brand more affordable. “Solahart is Australian made, so our water heaters are slightly more expensive. Being able to offer customers a bigger discount through the Safeguard Acceleration program definitely helps with sales.”

Photo credits: Matt Beaver, Department of Climate Change, Energy, the Environment and Water.