Policy Overview

The New South Wales Energy Savings Scheme (ESS) is an energy efficiency program launched in 2009 to provide NSW businesses with financial incentives to invest in projects which will reduce their energy consumption. Incentives are available to install new equipment or modify a current system. Energy savings are converted into Energy Saving Certificates which are sold to an energy retailer, with a portion of the returns flowing back to the business. In June 2020, there was a consultation to extend the NSW Energy Savings Scheme into the NSW Energy Security Safeguard.

The ESS Rule has been updated annually to maintain its effectiveness and keep it up to date. Consultations are held to receive feedback on any amendments.

In June 2021, a consultation was held to update the ESS Rule, continuing the Energy Security Safeguard (the Safeguard) consultation on the potential inclusion of heat pumps and solar water heater activities in the ESS.

In October 2022 the policy was again updated to continue to align the ESS Rule with the objectives and targets of the Energy Security Safeguard including a new Renewable Fuel Scheme (RFS) to incentivise the production of green hydrogen. The update also included a proposed expansion to the ESS to include fuel switching activities for both grid connected, and non-grid connected energy. The proposed fuels include Biomass, Biofuel, Biogas and on-site renewables.

In September 2023 a consultation on the current version of the ESS was held. This update included proposals for updating energy savings calculations and customer co-payments for hot water system upgrades. The current ESS was published in May 2024 and commenced in June 2024.

The Energy Savings Scheme Rule of 2009 (ESS Rule) and Electricity Supply (General) Regulation 2014 (ESS Regulation) are under consultation until April 2025. Proposed changes include discontinuing incentives for gas boiler installations and replacements, discontinuing the Sale of New Appliances (SONA) calculation method, and updating the equipment requirements for all heat pump hot water system activities.

InfluenceMap will continue to track engagement on this consultation as details become available.

InfluenceMap Query

Energy and Resource Efficiency

Policy Status

Active

Evidence Profile

Key

opposing not supporting mixed/unclear
supporting strongly supporting

Policy Engagement Overview

  • The evidence collected on corporate and industry lobbying on the ESS from 2015-20 indicates that the majority of corporates engaging on the policy have been supportive.
  • Several entities have supported the existing ESS and/or the expansion of the ESS into the Energy Security Safeguard including the Energy Efficiency Council, AGL Energy, BlueScope Steel, and CLP Holdings.
  • Energy Networks Australia and Energy Users Association of Australia did not appear to support state-based energy efficiency schemes such as the ESS in New South Wales.

Impacts on Policy Ambition

In June 2020, a consultation to extend the NSW Energy Savings Scheme into the NSW Energy Security Safeguard received over 40 submissions. The proposed Safeguard would include an Energy Savings Scheme that runs until 2050, with an energy savings target gradually increasing to 13% by 2030 and an expanded set of eligible activities. As of August 2021, the Safeguard has not yet been formally implemented in NSW.

InfluenceMap Query

Energy and Resource Efficiency

Policy Status

Active

Evidence Profile

Key

opposing not supporting mixed/unclear
supporting strongly supporting

Entities Engaged on Policy

The table below lists the entities found to be most engaged with the policy. InfluenceMap tracks over 500 companies and 250 industry associations globally. Each entity name links to its full InfluenceMap profile, where the evidence of its engagement can be found.

Influencemap Performance BandOrganizationPolicy PositionPolicy Engagement Intensity