Business owners can reduce their energy costs through incentives that support upgrading or replacing their equipment. By modernising your business’s appliances and operational systems, you’ll enhance energy efficiency while reducing electricity and gas consumption, leading to lower utility bills. These improvements align with NSW’s broader energy strategy, which aims to create an energy system that is more affordable, reliable, accessible, and sustainable. The NSW Government offers these benefits through two key initiatives: the Energy Savings Scheme and the Peak Demand Reduction Scheme, both operating under the Energy Security Safeguard framework.
Upgrade Options
Battery Installation Benefits and Incentives
The NSW Battery Installation Program provides financial incentives for new battery installations, including standalone batteries for existing solar systems and combined solar-battery setups. Benefits include lower power bills, backup power, improved grid stability, and support for NSW’s emissions reduction targets.
To participate, find an accredited installer, compare quotes, select an eligible battery, complete paperwork, and schedule installation. Discounts depend on battery capacity, and only new installations through accredited providers qualify. Consumer protections apply under Australian law, with support available from installers or IPART.
Compressed Air System Upgrades: Energy Efficiency Initiative
The NSW Compressed Air System Upgrade Program offers incentives to improve energy efficiency and reduce operational costs, as compressed air systems account for 10% of Australia’s industrial electricity use.
Eligible upgrades include air leak repairs, intake temperature optimisation, pressure adjustments, variable speed drives, control system optimisation, and heat recovery. The process involves obtaining quotes from approved suppliers, measuring energy usage, selecting a system, completing paperwork, and ensuring professional installation and training.
Incentives are based on energy savings, and all work must be done through accredited providers. The program is administered by IPART under the Energy Savings Scheme, with support from regional suppliers.
Furnace Upgrade Program for Energy Efficiency
The NSW Furnace Upgrade Program provides financial incentives for energy-efficient furnace upgrades that reduce costs and environmental impact.
Eligible improvements include furnace wall insulation, pressure control systems, temperature sensors, and oxygen enrichment equipment. The process involves obtaining quotes from approved suppliers, measuring energy use, selecting a system, completing paperwork, and ensuring professional installation and training.
Incentives increase with energy savings, and all work must be done through accredited suppliers and licensed electricians. The program operates under the Energy Savings Scheme (ESS), with no reimbursement for pre-completed work.
HVAC systems
Upgrading to an energy-efficient HVAC system can significantly reduce energy use and operating costs for businesses, as HVAC systems are often the largest energy consumers in commercial buildings. Financial incentives are available for installing new energy-efficient models or upgrading existing systems. Benefits include lower bills, improved comfort, and reduced environmental impact.
Upgrades involve replacing equipment or modifying systems for efficiency, such as optimising controls, airflow, and ventilation. Incentives are part of the Energy Savings Scheme and Peak Demand Reduction Scheme, rewarding greater energy savings.
To upgrade, businesses should contact approved suppliers for quotes, ensure eligibility, choose the right system, and follow proper installation procedures. Licensed technicians handle installation, training, and disposal of old equipment.
Hot water and steam systems
The NSW Hot Water & Steam System Upgrade Program offers financial incentives to improve energy efficiency, lowering energy bills and environmental impact.
Eligible upgrades include optimising controls, improving insulation, recovering waste heat, and reducing steam leaks. The process involves obtaining quotes from approved suppliers, measuring energy use, selecting a system, completing paperwork, and ensuring professional installation.
Incentives are part of the Energy Savings Scheme and Peak Demand Reduction Scheme, with higher rewards for greater energy savings. All work must be done by licensed professionals through accredited suppliers, with support available post-installation.
Lighting
The NSW Lighting Upgrade Program offers financial incentives for replacing old, inefficient lights with energy-efficient LEDs, helping businesses reduce energy use, lower costs, and improve sustainability.
LEDs last longer than traditional bulbs, cutting maintenance expenses. Incentives are available under the Energy Savings Scheme, with higher rewards for greater energy savings.
Businesses must work with approved suppliers, determine their energy usage category, and follow the proper installation process. Licensed electricians handle installation, disposal, and recycling. Support is available post-upgrade for any issues.
Motors, pumps and fans
The NSW Motors, Pumps & Fans Upgrade Program offers financial incentives for improving energy efficiency, reducing energy bills, and lowering environmental impact.
Eligible upgrades include matching systems to demand, installing variable speed drives, and optimising controls. Incentives are available under the Energy Savings Scheme and Peak Demand Reduction Scheme, with rewards increasing based on energy savings.
Businesses must work with approved suppliers, measure energy use, select the right equipment, and follow proper installation procedures. Licensed electricians handle installation, training, and disposal, with post-upgrade support available.
NABERS rating improvements
The NSW NABERS Energy Rating Incentive Program offers financial support for buildings aiming to improve their NABERS rating by at least 0.5 stars.
Higher NABERS ratings can reduce operating costs, increase property value, lower vacancy rates, and decrease environmental impact. Incentives are site-specific, based on rating improvements, building age, and energy consumption.
The process involves working with approved suppliers and NABERS assessors, completing upgrades, and finalising the NABERS rating. Eligible buildings can generate Energy Saving Certificates (ESC) under the Energy Savings Scheme (ESS) for financial rewards.
Power systems
Upgrading your power system to improve energy efficiency can reduce energy use, lower electricity bills, and decrease environmental impact.
Eligible modifications include voltage optimisation, power factor correction, uninterruptible power supplies (UPS), and electric power control systems (BMS). These upgrades are part of the Energy Savings Scheme, with higher incentives for greater energy savings.
To get the upgrade, contact an approved supplier for quotes, measure energy use before and after, select a system, complete necessary paperwork, and have the upgrade installed by licensed professionals. The old system will be recycled, and ongoing support is available if needed.
Process change and control system upgrades
Upgrading your process change and control systems to improve energy efficiency can reduce energy use, lower bills, and decrease environmental impact.
This applies to industries such as mining, chemical processing, and separation processes, where equipment can be modified or replaced to improve energy efficiency. Upgrades are part of the Energy Savings Scheme, with larger savings leading to higher incentives.
To get the upgrade, contact an approved supplier for quotes, measure energy use before and after, select the right system, complete paperwork, and have the installation done by licensed professionals. The old system will be recycled, and ongoing support is available.
Refrigeration
Upgrading your refrigeration system to improve energy efficiency can reduce energy use, lower bills, and decrease environmental impact.
Energy-efficient modifications include insulating pipework, installing variable speed drives, and adding automatic controls for compressors. These upgrades are part of the Energy Savings Scheme, with higher savings leading to greater incentives.
To get the upgrade, contact an approved supplier for quotes, measure energy use, select the best system for your needs, and complete the necessary paperwork. A licensed professional will handle installation and disposal of the old system, with ongoing support available if needed.
Bundled upgrades
Bundling your equipment upgrades can improve energy efficiency across multiple systems, lowering electricity bills and reducing environmental impact. A bundled upgrade allows you to update various systems such as HVAC, lighting, motors, compressed air, refrigeration, and more, all at once, saving money and boosting efficiency.
This is part of the Energy Savings Scheme, with higher energy savings resulting in greater incentives.
To get the upgrade, contact an approved supplier for quotes, select the best systems for your needs, complete the required paperwork, and have licensed professionals handle the installation and disposal of old equipment. Enjoy the benefits of your new, energy-efficient systems!
How this upgrade works?
The upgrades are carried out by approved suppliers, also known as Accredited Certificate Providers (ACPs), across NSW. You may have received communication via flyer, email, or letter, but you are free to request quotes from multiple suppliers to ensure you’re getting the best offer.
When you reach out to an approved supplier, they will verify whether they serve your area, as some suppliers may not cover the entire region.
Before any work begins, you must choose a supplier. Work already started or completed is not eligible for reimbursement. The supplier will assess your eligibility for the incentive under the scheme, and depending on the equipment and model selected, there may be a co-payment required.
You can either work with tradespeople chosen by the approved supplier or bring in your own, who will be subcontracted by the supplier. The electrician or plumber will handle the disposal and recycling of your old equipment to prevent inefficient equipment from being reused.
What to expect
You can expect suppliers to meet certain standards throughout the process. They should:
- Introduce themselves and explain the process, including any necessary forms or requirements.
- Provide details about the new appliance or equipment.
- Show you how to use the new equipment.
- Offer post-installation assistance for a set period.
- Remove and dispose of the old equipment being replaced.
Before selecting a supplier, ensure you:
- Verify the installer’s credentials and trade license.
- Confirm the supplier they are working with or subcontracted by.
- Understand the equipment upgrade and its suitability for your needs.
- Review any paperwork that needs to be completed, asking for assistance if needed.
- Ensure the old equipment is properly disposed of, typically by the installer or supplier.
Take Action Now to Reduce Your Energy Costs!
Is your business ready to lower its energy bills and become more environmentally friendly? With the NSW Government’s Energy Savings Scheme and Peak Demand Reduction Scheme, you can access financial incentives to upgrade your equipment and improve energy efficiency across your operations. Whether it’s upgrading refrigeration systems, motors, lighting, or installing new batteries, there are tailored solutions available to meet your needs.
Here’s how you can benefit:
- Save on electricity and gas by modernising your appliances and systems.
- Contribute to a more sustainable energy future in NSW.
- Access financial support for upgrades to reduce operational costs.
Don’t miss out on the incentives—take the first step toward a more energy-efficient future! Contact our experts today on the R&D Tax Incentive.
