The Home Energy Efficiency Retrofits (HEER) method may be used to calculate energy savings from a range of household and small business energy efficiency upgrades. Eligible activities are listed in Schedules D and E of the ESS RuleIn this method, the term ‘energy’ may refer to electricity, gas or both.

A site assessment must be carried out at homes or small businesses wanting an upgrade.

Fact sheet requirements

You will need to provide a fact sheet to the customer before they agree to an upgrade (i.e. before they sign the nomination form and the installation begins).

You may need to provide 2 fact sheets if the upgrade involves a heat pump water heater and other activities.

It’s good practice to keep records as evidence of providing the fact sheet. Auditors will check the fact sheets have been provided during audit.

Minimum payment requirements

The method requires that the customer pays a net amount (excluding GST) per implementation towards the cost of the installation (minimum payment).

From 19 June 2024, the minimum payment is $200 for pool pump, air conditioner and water heater activities (Activity Definitions D5 and D16-D21) and $30 for all other HEER activities. All minimum payments are excluding GST.

The minimum payment cannot be reimbursed to the customer in any form, including as gift cards or vouchers, credit notes or goods and services.

Lighting equipment requirements

Lighting equipment installed under the following activities of the HEER Method must be accepted by the Scheme Administrator as meeting the equipment requirements:

  • Activity Definition E1 – Replace halogen downlight with a LED luminaire and/or lamp
  • Activity Definition E2 – Replace a linear halogen floodlight with a high efficiency lamp
  • Activity Definition E3 – Replace parabolic aluminised reflector (PAR) lamp with efficient luminaire and/or lamp
  • Activity Definition E5 – Replace T8 or T12 luminaire with a LED luminaire
  • Activity Definition E11 – Replace an Edison screw or bayonet lamp with an LED lamp for general lighting purposes
  • Activity Definition E13 – Replace T5 luminaire with a LED luminaire.

Further information on these requirements can be found on the Product acceptance page.

Water heater equipment requirements

Water heater equipment installed under the following activities of the HEER Method must be accepted by the Scheme Administrator as meeting the equipment requirements:

  • Activity Definition D17 - Replace an existing electric water heater with an air source heat pump water heater
  • Activity Definition D18 - Replace an existing electric water heater with a solar (electric boosted) water heater
  • Activity Definition D19 - Replace an existing gas water heater with an air source heat pump water heater
  • Activity Definition D20 - Replace an existing gas water heater with a solar (electric boosted) water heater
  • Activity Definition D21 - Replace an existing gas water heater with a solar (gas boosted) water heater.

Further information on water heater equipment requirements can be found on the Product acceptance page.

Only one-for-one water heater replacements are allowed

You can only implement one-for-one water heater replacements under the HEER method. For instance, Activity Definitions D17 and D19 do not permit replacing a single water heater at a residential or small business site with more than one heat pump water heater. Where more than one water heater is being installed at a site, the evidence must clearly show the number of water heaters replaced, which must be equal to the number being installed (e.g. 2 gas water heaters being replaced by 2 heat pump hot water heaters).

Chimney damper equipment requirements

Chimney dampers used in Activity Definition E9 of the HEER method must be accepted by the Scheme Administrator as meeting the equipment requirements. See the Product acceptance page for more information.

Site Assessor Declaration

A site assessment must be undertaken for all HEER implementations. You must complete a Site Assessor Declaration for each implementation to demonstrate the assessment has taken place. You may use the template below or develop your own declaration form based on the template.

Post-Implementation Declaration

You are required to provide a post-implementation declaration to demonstrate each HEER implementation meets the relevant equipment and implementation requirements. You may use the template below or develop your own declaration form based on the template.

Relevant documentation

HEER Fact Sheet
HEER Heat Pump Water Heater Fact Sheet for consumers
HEER - Method Guide
Template - Nomination form
Template - Site Assessor Declaration
Template - Post Implementation Declaration
Implementation Data – examples template
Notice 03/2023 - Multiple heat pump water heater activities - July 2023
ESS Notice 01/2023 - Information - Concerns about installation of heat pump water heaters - March 2023
Fact Sheet – Air Conditioners and Refrigerated Cabinets – February 2022
Fact Sheet – ESS Rule Amendments – January 2022
Fact Sheet – Water Heaters – January 2022
Notice 03/2020 - Requirements for Commercial Lighting and HEER - Co-contributions
Notice 04/2019 – Information for all methods – Clarification about the provision of CCEWs as evidence in the Energy Savings Scheme