New South WalesEnergy Savings Scheme (ESS)

Aircon rebates
in NSW

NSW gives an upfront discount on efficient reverse-cycle systems, no income test, new installs and replacements both count. Here's what it's actually worth and how the rules changed in July.

What the ESS pays in 2026

Installing a high-efficiency reverse-cycle air conditioner generates energy-savings certificates. An accredited provider sells those certificates and passes the value back as a discount on your quote, you never touch the paperwork. Certificate prices float with the market, so no one can promise an exact figure, but the government's own indicative numbers are a good sanity check:

Job	Indicative discount
New 6kW split system	up to $550
Replacing an old unit with a 6kW split	up to $560
Ducted / larger high-efficiency systems	more, no official figure

Official indicative figures from energy.nsw.gov.au. Providers advertise "up to $2,600+" for big ducted jobs, that is marketing, not a government number. The real figure belongs on your written quote.

Where the discount comes from: ESCs and PRCs, explained

The mechanics explain why the discount varies and why efficiency matters so much:

Your installation's energy savings are calculated up front, based on the unit's efficiency rating, its size, your climate zone, and whether it is a new install or a replacement. The savings are counted over a 12-year equipment life (raised from 10 years in late 2025, which quietly made every eligible install worth about 20% more certificates).
Those savings become Energy Savings Certificates (ESCs), created by an Accredited Certificate Provider. The same install can also earn Peak Reduction Certificates (PRCs) under the companion peak-demand scheme, because efficient aircon eases summer grid peaks. Two certificate streams, one installation.
The provider sells the certificates to energy retailers, who must buy a quota every year. Prices float on an open market (ESCs have traded around the high-$20s each through 2026, market data, not a government rate).
The certificate value, minus the provider's costs and margin, comes off your quote up front. A more efficient unit earns more certificates, which is why the scheme can genuinely make a better unit cheaper than a budget one, and why quotes for the same job can differ between providers.

The rules changed on 1 July 2026

The current ESS Rule made three changes worth knowing. Multi-split systems became eligible for the first time (many sites wrongly date this to 2025). Minimum customer payments now apply: you must pay at least $500 yourself on a standard split, and $1,000 to $3,000 on ducted and multi-split systems depending on capacity, so the discount can never take a quote near zero. And the eligible product list tightened, low-efficiency units no longer attract anything, which changes the maths: a better unit can genuinely end up cheaper after the discount.

Who qualifies

All NSW households and small businesses, no income or property test
New installations and replacements both count
The unit must be GEMS-registered and meet the scheme's efficiency thresholds, your installer checks this
Sign the nomination form before installation, retrospective claims are not allowed
Already have an efficient modern system? You may not be eligible, the discount is based on the energy savings of the upgrade

How to claim it

Get quotes from installers partnered with an Accredited Certificate Provider and ask for the ESS discount as a line item on each.
Pick a high-efficiency GEMS-registered model, more efficiency means more certificates means a bigger discount.
Sign the nomination form before install day. After the job, you sign a declaration, the installer photographs the work and disposes of the old unit.

Worth checking too: the NSW Home Energy Saver program offers 0% interest loans up to $15,000 for energy upgrades including reverse-cycle aircon (household income under $210,000), with discounts up to $4,000 flagged for lower-income households. Separate program, separate application, on energy.nsw.gov.au.

Get free quotes

Sources

energy.nsw.gov.au, air conditioner upgrade incentive (indicative figures, process)
IPART, ESS Rule and changes (1 July 2026 rule: multi-splits, minimum payments)
energy.nsw.gov.au, Home Energy Saver (0% loans, income caps)

NSW rebate FAQs

How much is the NSW air conditioning discount in 2026?

It is not a fixed amount. The NSW Government's indicative figures are up to $550 off a new 6kW system, or up to $560 when replacing an old unit with a 6kW split. The real discount depends on the model's efficiency, your climate zone, the floating certificate price and your installer's margin, so compare quotes from several ESS-partnered installers.

Is it a rebate I claim after installation?

No. It is an upfront discount applied to your quote by an installer partnered with an Accredited Certificate Provider. You must sign the nomination form before installation, work already completed cannot be discounted retrospectively.

Is there an income test?

No, the ESS discount is open to all NSW households and small businesses. The separate NSW Home Energy Saver program, which also covers reverse-cycle aircon through 0% loans up to $15,000 and upcoming discounts up to $4,000, does have income caps of $210,000 and $80,000 respectively.

Does the discount work on ducted systems?

Yes, ducted systems are eligible, and larger high-efficiency systems generate more certificates. There is no official published dollar figure for ducted though, providers advertise anywhere up to $2,600 or more, treat those as marketing estimates and get the real number as a line item on a written quote. Note the minimum payment rules: you must pay at least $1,000 yourself on a ducted system up to 15kW, more for bigger systems.

Get quotes with the ESS discount applied

Up to 3 licensed installers quote your job. Ask each to show the ESS discount as a line item.

Aircon rebates in NSW