Energy Savings Scheme

The Energy Savings Scheme (the Scheme) aims to deliver cost-effective energy savings for NSW households and businesses by providing financial incentives to install energy-efficient equipment and appliances. The Scheme also incentivises energy retailers and large energy users to reduce their use of fossil fuels. 

The Energy Savings Scheme is NSW’s largest energy-efficiency program and is one of the key programs for NSW to achieve net zero emissions by 2050. The Scheme was established in 2009 and will remain operational until 2050 under the NSW Electricity Supply Act 1995, in line with NSW’s net zero goals.

Between 2009 and 2023, the Scheme has supported projects that will deliver 57,000 gigawatt hours (GWh) of energy savings over their lifetime. As of December 2023, the Scheme has reduced greenhouse gas emissions by around 27 megatonnes (Mt). This is the same as the carbon emissions produced by the NSW transport sector in 2022.

Under the Energy Savings Scheme Rule, we set out targets for energy retailers and large energy users. These targets are met by creating or buying Energy Savings Certificates (ESCs). Energy Savings Certificates are created for eligible activities that reduce energy usage, such as installing energy-efficient appliances. These activities are updated regularly in consultation with industry stakeholders to ensure they remain effective, in alignment with the objectives of the Energy Security Safeguard.

We review the Energy Savings Scheme every 5 years. During the 2020 review we increased the energy savings target of the scheme by 0.5% each year from 2022, reaching 13% in 2030. The target will then remain at 13% until the end of the scheme in 2050.

Current Energy Savings Scheme Rule

The current Energy Savings Scheme Rule was published on 29 August 2025, with changes commencing on 12 September 2025.

Before making the changes, we consulted industry for feedback. Our public consultation was open from 4 March 2025 to 4 April 2025.

These changes include updates to:

• commercial lighting
• the sale of new appliances (SONA) method
• commercial heat pump water heater requirements
• the lifetime of air conditioner activities
• unsolicited door-knocking.

We have made these changes to improve the Scheme’s effectiveness and preserve its integrity. These changes also support customers to make informed decisions and receive high-quality upgrades.

Learn more about the Rule change in the:

• Energy Savings Scheme Rule
• Position paper
• Public submissions

Learn more about previous changes to the ESS Rule and Regulation. 

Get involved

We collaborate with industry through research and public consultation. We’ll keep you informed by updating activities regularly on our website and via email.

Email us to learn more about and get involved in our research and consultation at [email protected]