Frequently Asked Questions about energy saving certificates (escs)
Learn everything about Energy Saving Certificates and the NSW Energy Savings Scheme
What is the NSW Energy Savings Scheme (ESS)?
The NSW Energy Savings Scheme (ESS) was established to provide a financial incentive for owners or tenants of homes and businesses in NSW.
The program aims to reduce energy consumption within NSW, reduce energy costs for consumers and reduce the need for investment in new energy infrastructure by placing a mandatory obligation on energy generators and retailers in NSW to purchase and surrender energy savings certificates (ESCs).
The program is administered and regulated by the Independent Pricing and Regulatory Tribunal (IPART).
Accredited Certificate Providers (ACPs) can create and trade Energy Saving Certificates in the wholesale certificate market.
The funds raised from the sale of ESCs can help offset the initial cost of implementing energy savings projects.
What is an Energy Savings Certificate (ESC)?
One ESC represents one MWh (megawatt hour) of energy saved, under certain conditions, over a period of time, after carrying out an eligible energy savings activity in NSW.
The IPART method guides determine the number of ESCs each eligible upgrade activity can claim.
As an ACP, Green Energy Trading collects documentation and verifies evidence of eligible upgrade activities in order to register ESCs with IPART for our client’s jobs. We then complete the cashback payment to our client and trade the registered ESCs in the wholesale market.
Scheme Participants obtain and surrender ESCs to IPART to fulfil their obligations under the ESS.
What activities are eligible for ESCs under the ESS?
There are various methods that can generate energy savings in NSW across both the Residential and Commercial/Industrial sectors.
Activities for the Residential and Small Business sectors include water heater upgrades, installing LED lighting, air-conditioning upgrades, and pool pump upgrades.
Activities available in the commercial and industrial sectors include commercial and public lighting upgrades, installing high-efficiency appliances (such as HVAC and refrigerators) and industrial equipment or process upgrades.
How much can Customers Save on their upgrade with ESCs?
Each energy savings activity type has a different formula to calculate energy savings based on assumptions about the inefficiency of the old removed equipment and the energy efficiency of the new equipment.
The greater the saving between the energy required to run the old equipment and the energy required to run the new efficient equipment, the more ESCs the activity will attract.
As an example, replacing an electric hot water system with a particular model of high-efficiency heat pump water heater in a Sydney home, may generate up to 45 ESCs*.
A typical split system Air Conditioning (AC) upgrade is eligible for 11 ESCs*. While installing a particular high-efficiency refrigerated display cabinet in a small business attracts a much higher calculation of ESCs due to the greater energy savings compared to residential appliance upgrades.
Indicative Project Return*
| Installation type | Number of ESCs generated | Project Return |
|---|---|---|
| Replacing an electric hot water system with a particular model of high-efficiency heat pump water heater in a Sydney home | 45 | $1,293.75 |
| Typical split system AC upgrade | 11 | $316.25 |
| Installing a particular high-efficiency refrigerated display cabinet | 278 | $7,992.50 |
* Values supplied in this page are indicative only. Please contact Green Energy Trading - benefit@greenenergytrading.com.au - for an estimate specific to your project using the current pricing.
How can ESCs benefit me?
If you are installing energy efficiency equipment in homes and businesses in NSW, your projects could be eligible for ESCs.
We make it easy for you to access the ESS. You will receive payments for each eligible and compliant installation you complete, giving you a competitive advantage and increasing your service offering to your customers.
I'm ready to partner with Green Energy Trading to convert ESCs from my projects into cashflow, what's the next step?
Get in touch with us today, to discuss how your business can take advantage of ESCs, by working with Australia’s most trusted Certificate Provider.
We employ a team of experienced engineers, dedicated customer service officers and ESS experts. We guide you through the process and help you get the best return on investment for your client or customer base.
You can always call us to know more about the ESS and ESCs:
1300 077 784
If you want to learn more about what we offer and how we help you win more business, click in one of the links below
WATER HEATING
Get Incentives for Solar Water Heater and Heat Pump Installations. You install, we pay you on time, every time and reduce compliance risks!
AIR-CONDITIONING
Would you like a simple and easy way to reduce your price for your customer with cash-back from government schemes?
commercial lighting
If you need assistance navigating through complex compliance requirements, we can provide you with clear and concise information and first-class customer service.