How the ESS discount reaches you
Under the ESS, energy savings certificates are created by an Accredited Certificate Provider (ACP). An installer who offers the discount has to partner with one, and those providers work independently from the NSW Government.
Energy NSW describes the incentive as an upfront discount in the installer's quote, so it's not something you claim back afterwards. The installer gives you a nomination form, which must be signed and returned before installation begins. Energy NSW is clear that you won't be reimbursed for work that's already been done.
IPART administers the incentive and accredits the certificate providers. If you're unhappy with how a provider has behaved, IPART is the one to tell.
What does the ESS cover?
The air conditioner activity in the ESS Rule, numbered D16, covers installing a new high efficiency air conditioner, or replacing an existing air conditioner with a high efficiency one. The old unit doesn't need to be working for the replacement to count.
Energy NSW says all households and small businesses in NSW may be eligible, but a home that already has an energy efficient air conditioner may not be.
As at February 2026, Energy NSW listed the cap on the discount as $550 for installing a new 6 kW system, and $560 for replacing an old air conditioner with a 6 kW split. Read those as ceilings, not promises: the number on your written quote is the one that counts.
What the ESS leaves out
Gas space heaters are out. An activity with an implementation date on or after 1 July 2026 that installs or replaces a gas space heater isn't eligible, and nor are gas fired water heaters or boilers.
Doorknocked jobs are out too. Any activity connected with unsolicited doorknocking, meaning someone came to your home to sell or promote it without your express prior consent to be visited, isn't eligible at all. Both exclusions sit in the ESS Rule that commenced on 12 September 2025.
So if you're replacing a gas heater in NSW, the ESS can only help if you move to a high efficiency air conditioner, which for heating means reverse cycle. Our guide to reverse cycle or gas heating covers the trade-offs.
How to use the ESS on an air conditioning job
Get the right system quoted first
A good installer sizes the system for the room before anyone talks discounts. The size calculator gives you a sensible starting point.
Ask which provider they partner with
An installer offering the ESS discount must partner with an Accredited Certificate Provider. Ask for the provider's name and write it down.
Check the discount is on the quote
It's an upfront discount, so it should be shown on the written quote, not promised for later.
Sign the nomination form before work starts
The form has to be signed and returned before installation begins. Sign it after the unit is on the wall and the discount is gone.
Check the installer's licence
Air conditioning work in NSW needs a licence or certificate. Our licence guide shows how to look one up.
Keep everything together
The quote, the signed nomination form and the provider's name. If there's a problem with the provider's conduct later, you'll need them when you contact IPART.
Who can do the work in NSW
You need a licence or certificate to do air conditioning and refrigeration work in NSW. That covers the associated wiring, such as disconnecting and reconnecting components designed to be permanently connected, but some licences carry a condition excluding the electrical side. Ask who's doing the electrical work and what licence they hold.
NSW law also bars anyone from advertising air conditioning work, of any value, without a current contractor licence. Their ads have to show the licensee's name, the licence number with the right category of work, and a business phone number. Service NSW's licence check lets you search by name, licence number, ABN or location.
Where the Peak Demand Reduction Scheme fits
NSW also has a Peak Demand Reduction Scheme (PDRS), which is separate from the ESS. We haven't been able to confirm its current rules for home air conditioners at the source, so we won't guess at what it offers or who can use it.
If an installer mentions the PDRS, ask them to put three things in writing: which scheme the discount comes from, which provider is behind it, and what you have to sign and when. And treat any uninvited visit about it the same way you'd treat one about the ESS.
Warning signs on an ESS offer
- Someone at your door you didn't invite. Doorknocked activities can't get the ESS discount.
- An offer of ESS money towards a gas space heater installed from 1 July 2026.
- A pitch that says the NSW Government is paying. The providers work independently of it.
- Being told the nomination form can wait until after the install.
- No provider name, or an installer who won't show you their licence.
- Pressure to sign on the spot. If you do sign at home, our cooling-off guide explains when you can change your mind.
Your part, and the installer's
You can
- Deciding which rooms need heating and cooling before you talk discounts.
- Asking for the Accredited Certificate Provider's name.
- Reading and signing the nomination form before any work starts.
- Checking the installer's licence on Service NSW.
Leave to a licensed installer
- Sizing and quoting a high efficiency system for the space.
- Arranging the nomination form with their certificate provider.
- The install, by someone licensed for air conditioning work in NSW.
- Taking out the old unit if you're replacing one.
What we'd do
Where we'd start
We'd choose the system first and treat the ESS as a welcome discount, not the deciding factor. Have a reverse cycle specialist size it for the rooms you actually use, ask which Accredited Certificate Provider they work with, and sign the nomination form before anyone drills a hole. If the offer turned up on your doorstep uninvited, we'd say no thanks.
