The NSW Government offers upfront discounts to households and small businesses installing energy-efficient air conditioners. These incentives aim to reduce energy consumption, lower power bills, and support NSW’s goal of net zero emissions by 2050. Discounts range from $340 to $560 for a new 6kW system, and $440 to $730 when replacing an old unit with a 6kW split system. The final cost depends on the chosen model and installation specifics. To access these discounts, obtain quotes from installers partnered with Accredited Certificate Providers, ensuring the incentive is included upfront.
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What is the Energy Savings Scheme (ESS)?
The Energy Savings Scheme (ESS) is a NSW Government program designed to help households and businesses reduce their energy use by offering upfront discounts on energy-efficient upgrades — like air conditioners!
The scheme works by partnering with Accredited Certificate Providers (ACPs), who create Energy Savings Certificates (ESCs) when you install energy-efficient products. These certificates are sold to electricity retailers, who are required by law to buy them — helping fund the discounts you receive.
In short: the ESS lowers the cost of energy-efficient upgrades by shifting the cost onto energy companies, encouraging everyone to cut down on electricity use. It’s all part of NSW’s push towards net zero emissions by 2050.
Is the NSW air conditioner incentive a rebate?
No, the NSW air conditioner incentive is not a rebate — it’s an upfront discount. This means the cost of the energy-efficient air conditioner is reduced at the time of purchase and installation, so you don’t have to pay full price and then claim money back later. The discount is applied through installers partnered with ACPs.
How much can I save with the NSW air conditioner incentive?
With the NSW air conditioner incentive, you can save:
- $340 to $560 for installing a new energy-efficient 6kW air conditioner.
- $440 to $730 if you’re replacing an old unit with a 6kW energy-efficient split system.
The exact discount depends on the model you choose and the ACP handling the installation. The discount is applied upfront — so no need to wait for a rebate!
Am I eligible for the air con incentive?
The NSW air conditioner incentive is available to:
- Households upgrading or replacing their air conditioning with an energy-efficient model.
- Small businesses looking to install or upgrade their air conditioning systems.
To be eligible, the upgrade must be done through an installer partnered with an ACP. There’s no income test, so it’s open to most residents and small businesses in NSW.
What air conditioners are eligible for the incentive?
To be eligible for the NSW air conditioner incentive, the air conditioner must:
- Be a high-efficiency reverse cycle air conditioner (split system or ducted).
- Meet the Minimum Energy Performance Standards (MEPS) set by the government.
- Be installed by a professional partnered with an ACP.
The incentive applies to both new installations and replacements of older, less efficient units. The size and brand of the system can affect the discount, but only energy-efficient models qualify.
Who can install the air conditioner?
To receive the incentive, your air conditioner must be installed by an ACP or an installer partnered with one.
Will my air conditioner be eligible for any other rebates?
Your air conditioner might be eligible for other rebates, depending on your situation. Here are a few possibilities in NSW:
- Energy Savings Scheme (ESS): This is the scheme behind the current air conditioner incentive, offering upfront discounts for energy-efficient upgrades.
- Low Income Household Rebate: If you hold an eligible concession card, you could get help with your electricity bills, though this doesn’t directly lower the cost of the air con.
- PeakSmart rebates (offered by some energy providers): These rebates reward you for installing air conditioners that can reduce their energy use during peak demand times.
It’s worth checking with your energy provider or the NSW Government energy website to see if there are any extra incentives you can stack with the air con discount!
