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NSW Energy Saver Certificates

The Energy Savings Scheme (ESS) is a NSW government scheme designed to reduce electricity and/or gas use by creating a financial incentive for households and small business organisations to invest in the installation of a solar hot water system or heat pump water heater to upgrade their hot water system to save energy.

From April 2022 solar hot water systems and heat pump water heaters have been included in the scheme.

  • The ESS is a certificate trading scheme.
  • Listed products under the ESS are eligible for a certain number of Energy Saving Certificates (ESCs) that arise from the equipment upgrades being delivered. eg. when replacing an electric storage or gas water heater with a heat pump or solar water heater
  • An Accredited Certificate Provider (ACP) creates the (ESCs) for the energy savings which will occur.
  • The ACP then sells the ESCs. So, like the small-scale technology certificates (STCs), these ESCs have a variable market value and their value can be used to offer a discount on the purchase and installation of a solar or heat pump water heater.

What does this mean for you?

If you are a home or small business owner in NSW and you replace your old electric or gas water heater with a solar hot water heater or a heat pump water heater at a NSW address, the cost of that system may be reduced by the value of the (ESCs). This is in addition to the STC incentive available under the federal government scheme.

For more information on eligibility contact your local Rheem Solar Specialist on 1300786747.

Frequently Asked Questions (FAQs)

The residential scheme is called the Home Energy Efficiency Retrofit (HEER) and covers Heat pump and solar water heaters in households. The systems covered are as follows:

    Replace an existing electric water heater
    • D17 – with an air source heat pump water heater
    • D18 – with a solar (electric boosted) water heater
    Replace an existing gas water heater
    • D19 – with an air source heat pump water heater
    • D20 – with a solar (electric boosted) water heater
    • D21 – with a solar (gas boosted) water heater

    From the commencement of the solar and heat pump water heater eligibility under the program, most of the current Rheem water heaters which are eligible for STCs, will be eligible for ESCs. Some Hiline direct systems and gas boosted variant systems are in the process of being added to the eligible systems list and have been submitted to the program for listing. This is expected to happen soon.

    The number of certificates applicable to the installation of a particular system model will be determined by the activity (what the water heater is replacing) and location (postcode). A register of listed solar and heat pump water heaters and their number of certificates by Activity and Postcode will be made available on the Scheme's website https://www.ess.nsw.gov.au/Householders-and-businesses .

    Rheem Australia Pty Ltd is currently not an ACP but is in the process of applying to register as an ACP. In the meantime, Rheem has negotiated with an existing ACP, the National Carbon Bank of Australia (NCBA), whereby Rheem will facilitate NCBA as the nominated Energy Saver by the customer, and NCBA will create the ESCs OR there are other Accredited Certificate Providers for the solar and heat pump activities parts of this scheme who can be nominated as the Energy Saver to create the ESCs, such as Green Energy Trading. There would be others. They will have their own forms for the Site Assessment, Nomination and Post Implementation Declaration.

    • The replacement of an electric water heater with a solar (gas boosted) water heater as the NSW ESS does not incentivise new gas connections.
    • Installations of new solar water heaters or heat pump water heaters in new buildings, or where there is no existing electric or gas hot water system.
    • The replacement of an existing solar water heater or heat pump water heater.
    • Any installation undertaken to comply with any mandatory legal requirement imposed through a statutory or regulatory instrument of any jurisdiction, including, but not limited to, compliance with BCA and BASIX affected development requirements.

    Further information can also be sourced from the scheme’s web site, https://www.ess.nsw.gov.au/


    Small-scale Technology Certificates

    STCs are Federal Government financial incentives that encourage solar and heat pump installation.