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Energy Insights

Changes to NSW Energy Efficiency Subsidy for Businesses

IPART have announced changes to the commercial lighting methodology under the NSW Energy Savings Scheme (ESS) that will come into effect on 1 November 2018.

The purpose of the ESS is to incentivise businesses to invest in energy efficiency through projects such as commercial LED lighting upgrades. By participating in energy saving activities, businesses in NSW become eligible for Energy Saving Certificates (ESCs).

Unsure of how to claim your Energy Saving Certificates? Speak to our energy experts today to find out how.

What are these changes and how is it going to affect my business?


The important takeaway from the upcoming changes is that regional areas undertaking industrial retrofits (eg. upgrading warehouse lights to LED high bays) will benefit the most from a subsidy increase of as much as 20%.

However, subsidies will be reduced in metro areas (eg. upgrading office tube lights) by a similar percent.

A high bay in a retail space is currently eligible for 10 years of ESCs, however from 1 November, high bays will only be eligible for 10 years of ESCs in regional areas and 7.4 years in metro locations.

In addition, the eligibility threshold for small businesses under the Home Energy Efficiency Retrofit (HEER) program has changed to be based on electricity consumption. This is favourable for small business energy users who will now be eligible for subsidies under HEER.

If you are a business with large warehouse space or energy expenditure on lighting in regional NSW, it is a great time to consider a lighting upgrade. Conversely, if you are a business in the metro area planning to undertake upgrades, there is still time to replace them before subsidies are reduced on 1 November.

If you are unsure of how these changes could affect your business or what steps to take next, contact our team now for professional energy efficiency advice.

This article was supplied by Cherry Energy Solutions, Energy Action's Partner for lighting upgrades and solar.

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