Overview of the scheme
The Energy Savings Scheme reduces energy consumption in NSW by creating financial incentives to invest in energy savings activities
Lifecycle of an energy savings certificate
- Liable parties such as electricity retailers buy energy savings certificates
- The cost of energy savings certificates is returned to the businesses who generate them
- Businesses invest in better technology to reduce their energy use
- Energy savings certificates are generated through the reduction in energy use
Financial incentives for saving energy
When businesses invest in reducing their energy use, an Accredited Certificate Provider may be able to create energy savings certificates from each notional MWh of energy the project saves. Electricity retailers, who are mandatory scheme participants, then buy the energy savings certificates to meet their own legislated targets, as required by law.
Energy savings certificates are the 'currency' of the scheme. The Energy Savings Scheme is not a rebate scheme.