Overview of the scheme
The Energy Savings Scheme reduces electricity consumption in NSW by creating financial incentives to invest in energy savings activities
The Energy Savings Scheme is established under NSW legislation. Its main objective is to assist households and businesses to reduce electricity consumption and electricity costs.
Businesses that save energy by installing, improving or replacing energy savings equipment can gain financial incentives by participating in the scheme.
Financial incentives for saving energy
When businesses invest in reducing their energy use, energy savings certificates are created by the voluntary scheme participants that have helped to implement those energy savings activities. 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.
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