Methods for calculating energy savings

This page lists the different methods used to calculate energy savings for eligible activities under the Energy Savings Scheme

The Energy Savings Scheme allows energy savings to be calculated using three methods. Each method has been designed as suitable for the particular activity being undertaken. The method you use depends on the activity you will implement.

Deemed Energy Savings Method

This method is used if the energy savings project (or Recognised Energy Savings Activity as defined in the legislation) involves installing or replacing a range of common end-user equipment.  Under these methods lifetime energy savings are created upfront, that is 'deemed'.

The Deemed Energy Savings Method includes the following methods from the ESS Rule:

  • Commercial Lighting Energy Savings Formula
  • Default Savings Factors
  • High Efficiency Motor Energy Savings Formula
  • Power Factor Correction Energy Savings Formula

 Find out more about the Deemed Energy Savings Method.

Metered Baseline Method

This method is best suited if the energy savings project materially reduces the electricity consumption of a whole site or discrete part of a site, and the energy savings can be determined by reference to a site baseline. This method can be used for buildings with a NABERS rating.

 Find out about more about the Metered Baseline Method.

Project Impact Assessment Method

This calculation method is best suited to discrete energy savings projects where the overall reduction in electricity use is a small proportion of total site use.

Find out more about the Project Impact Assessment Method.

Choosing the right calculation method

The creation of energy savings certificates depends on accurately calculating the energy savings achieved by an energy savings project.

The table below shows the calculation method used for different projects and equipment activities with the most common methods highlighted.

Table: Typical calculation methods used for different activities, with the most common application of each method is highlighted

Activity

Project Impact Assessment Method

Metered Baseline Method

Default Savings Factors

(DESM) 

Commercial Lighting Formula

(DESM) 

High Efficiency Motor Formula

(DESM) 

Power Factor Correction Formula

(DESM) 

Efficient lighting

 

Using factors from DESM 

Part of site based approach 

Residential*

 

Commercial & Industrial* 

   

Efficient whitegoods    

Any sector*

 

 

Commercial and/or industrial site improvements  

Equipment level calculations* 

Part of site based approach

 

 

 

Office building, hotel or shopping mall site improvements - NABERS rating

Equipment level calculations

Commercial*

 

 

 

 

Industrial sites and processes    

Equipment level calculations

Part of site based approach*

 

 

 

 

High efficiency motors       Equipment level calculations Part of site based approach      Commercial and industrial*   
Power Factor Correction Equipment level calculations  Part of site based approach        Commercial and industrial* 

DESM = Deemed Energy Savings Method

* The most common application of each method is highlighted