General information, not financial advice. NSW Climate and Energy Action’s pages, linked at the foot of this page, are the official place to check. Amounts and rules change, and the figures here are dated.
The rules changed on 7 September 2026
New rules under the Energy Security Safeguard took effect on 7 September 2026, affecting the Energy Savings Scheme and the Peak Demand Reduction Scheme. NSW lists changes to the eligibility of air conditioners and to minimum customer co-payments for air conditioners among them.
The incentive page that gives the amounts below was last updated on 6 February 2026, before those changes took effect, so check the current discount in an installer’s quote before relying on it.
What the Energy Savings Scheme is
NSW calls the Energy Savings Scheme its largest energy-efficiency program. It aims to deliver energy savings for NSW households and businesses through financial incentives to install energy-efficient equipment and appliances. It was established in 2009 and will remain in operation until 2050 under the NSW Electricity Supply Act 1995.
It works through certificates. NSW sets targets for energy retailers and large energy users, who meet them by creating or buying Energy Savings Certificates, and certificates are created for activities that reduce energy use, such as installing energy-efficient appliances. For a household, the discount arrives through an installer partnered with an Accredited Certificate Provider, a business accredited by IPART, the incentive’s administrator.
The air conditioner incentive
| Point | What NSW says |
|---|---|
| How it is paid | As an upfront discount in the quote for installing a new air conditioner. |
| A new system | Up to $550 for installing a new 6kW air conditioner system. |
| A replacement | Up to $560 for replacing an old air conditioner with a 6kW split system. |
| How firm the amounts are | Indicative only; the actual discount and final cost vary. |
| Who may be eligible | All households and small businesses in NSW may be eligible. |
| What you still pay | A minimum payment towards the new air conditioner and its installation. |
NSW lists what moves the actual amount: the installer you choose, where the installation is and the services it needs, such as travel, the model, the design of your home or business and any extra building work, the cost of securing the discount, and the installer’s margin.
Who may miss out
Whether you can get the incentive may depend on whether installers who offer it service your area. Households that already have an energy-efficient air conditioner may not be eligible, because the incentive is based on the energy your new appliance could save. Not every model qualifies, and a more efficient model brings a bigger installation discount as well as larger savings over time.
You can use your own licensed tradesperson. If they don’t already work with an Accredited Certificate Provider, they will need to team up with one, under a special agreement, to do the work through the scheme. The paperwork, which has to be done before installation starts, is set out in from quote to installation in NSW.
Home Energy Saver loans
NSW Climate and Energy Action’s page on reverse-cycle air conditioners, updated 9 July 2026, also lists the NSW Government’s Home Energy Saver loans: a zero-interest loan of up to $15,000 for NSW homeowners or landlords installing reverse-cycle air conditioning or other eligible technology. To be eligible you must be an Australian citizen or permanent resident, with a combined annual taxable household income of up to $210,000. The NSW Government funds the loans, and selected finance providers deliver them.
The same page points to the Australian Government’s Household Energy Upgrades Fund, which it describes as low-interest green loans from participating banks and lenders that cover out-of-pocket costs.
Help with running costs
If paying energy bills is the difficulty, NSW says support is available. It suggests calling your retailer to ask about a better plan or discounts, and notes that retailers have to tell you if you are not on their cheapest plan and how to switch. You can also compare plans on Energy Made Easy, the Australian Government website, and Service NSW staff can help you use it.
For the hours when the grid is under most pressure, see hot afternoons and the NSW grid.
NSW’s way to find out whether you are eligible is to speak to an installer offering the incentive, who can check your eligibility and give you a quote with the discount applied.