The NSW Energy Savings Scheme (ESS) is driving energy efficiency upgrades in NSW by providing financial incentives to make implementation more affordable and attractive.

The ESS places an obligation on energy retailers to purchase Energy Savings Certificates (ESCs). These certificates are generated by an Accredited Certificate Providers (such as Wattly) by performing eligible activities.

It is administered and regulated in accordance with the ESS Savings Scheme Rule 2009 (or the ESS Rule) by the Independent Pricing and Regulation Tribunal of NSW (IPART).

Method Name Activity Residential Business Wattly Accredited
Commercial Lighting (Formula) CLF Undertaking a lighting upgrade in commercial buildings (commercial, industrial, government, schools) NO YES YES
Public lighting method CLF Undertaking a lighting upgrade in outdoor areas. Street lighting, council lighting, outdoor lighting NO YES YES
Project Impact Assessment with Measurement and Verification PIAM&V PIAM&V covers a wide range of Commercial and Industrial Upgrades. (Motors, Fans, Pumps, Conveyors, Compressors, Chillers, Refrigeration, Boilers, Gas) NO YES YES
Metered Baseline Method MBM The MBM compares the energy consumed before and after the energy saving activity has been performed.  Can be an entire site.  ESCs created on a yearly basis in arrears. NO YES YES
High Efficiency Appliances for Business HEAB HEAB is a deemed method, that looks primarily at the efficiency of the new equipment.  Most useful when PIAM&V is too costly to perform. NO YES YES
Home Energy Efficiency Retrofit HEER Low efficiency lighting to High Efficiency lighting

General Lighting including downlights, reflectors lamps, standard Edison and Bayonet Bulb

  • Market Based Scheme

    • One certificate (an ESC) = 1 tonne of CO2e (converted from MWh or GJ of energy savings)
    • Market tradable certificates are called Energy Saving Certificates (ESCs)
    • The target for 2017 is 3.1 million ESCs
    • Certificates are bought and sold on the wholesale market in parcels of 5,000 through brokers
    • The certificate price is based on supply and demand and can be quite volatile.

  • Market Demand

    • The scheme places an obligation on energy retailers to purchase ESCs
    • Energy Retailers face penalties for failing to meet (surrender) their quota of certificates
    • Certificate costs are recovered from consumers (through charges on their electricity bills)

  • Market Supply

    • Accredited Certificate Providers (ACPs), such as Wattly, are accredited businesses, enabling them to create certificates from energy efficiency upgrades
    • Certificates can only be created through approved activities / methods. These methods are known as Recognised Energy Saving Activities – RESAs

  • Regulations

    • NSW Government Scheme regulated to 2025
    • NSW Independent Price and Regulatory Tribunal (IPART) administers the scheme
    • NSW Office of Environment and Heritage (OEH) is responsible for policy development of the scheme

Wattly is an Accredited Certificate Provider under the ESS. Before creating ESCs, evidence must be collected in the form of photographs, declarations, receipts and other documentation depending on the nature of the upgrade. Methods for calculating energy savings are specified by the Rule, which undergoes continual refinement and development.

Wattly specialises in the ESS scheme through:

Partnering with Wattly

Wattly partners with businesses involved in energy efficiency and renewable energy installations to enable them to financial based incentives under the state and federal schemes.

Wattly partners with both energy efficiency installation companies, electricians, equipment suppliers and end businesses performing upgrade

Get in touch

For further information, or to discuss how Wattly can help you, please call us.

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