Installation of High Efficiency Appliances for Businesses
The Installation of High Efficiency Appliances for Businesses (IHEAB) method is a calculation method under the ESS. It calculates energy savings from installing the following high efficiency equipment:
- refrigerated cabinets
- liquid chilling packages
- air conditioners
- motors powering fans and various other equipment
- boilers
- oxygen trim systems, burners or economisers on boilers or water heaters
- blowdown controls, systems and heat exchangers on boilers
- heat pump water heaters.
Equipment that you use in this method must follow the relevant performance standards. It also needs to be registered or accredited under those standards. For example:
- being a Greenhouse and Energy Minimum Standards (GEMS) or New Zealand Energy Efficiency (Energy Using Products) registered product
- meeting Minimum Energy Performance Standards (MEPS)
- meeting an Australian/New Zealand Standard
- meeting other performance requirements as applicable.
For the specific eligibility, equipment and implementation requirements for each Activity Definition in the IHEAB Method, please refer to Schedule F within the ESS Rule.
Changes to refrigerated cabinet activities
Activity Definition F1.1 (Install a new high efficiency refrigerated cabinet) has been suspended until further notice. ACPs cannot create ESCs from F1.1 implementations occurring on or after 19 June 2024.
Changes to Activity Definition F1.2 (Replace an existing refrigerated display cabinet) equipment requirements, implementation requirements and activity lifetime also apply from 19 June 2024.
See the ESS Rule page and our 2024 ESS Rule Change Quick Reference Guide for more details.
We’ve also updated the Installer Declaration template for F1.2 – see Installer Declaration and Relevant documentation sections below for details.
Key IHEAB requirements
Be sure you meet the following key requirements when using this method to calculate energy savings.
Product acceptance
For the installation of a heat pump water heater to be eligible under the IHEAB Method, the equipment must be accepted by the Scheme Administrator as meeting equipment requirements. Visit our Accepted products list page for details of accepted heat pump water heaters.
This requirement is relevant for the following activities:
- Replace old hot water boilers or heaters with air source heat pump water heaters - Activity Definition F16
- Install air source heat pump water heaters - Activity Definition F17.
See the Water Heaters page for further information on water heater equipment requirements.
Installing multiple heat pumps
You can install any single heat pump water heater on the Accepted Products List in multiples. Then use this to calculate certificates under the IHEAB method as long as the heat pumps:
- are accepted for use in Activity Definitions F16 or F17
- are each an identical model
- are joined in parallel and
- have balanced water flow.
Calculating certificates
See Notice 03/2023 for more details about heat pump water heaters under the ESS, including how to:
- calculate certificates
- determine the capacity factor for Activity Definition F16.
Building Commission NSW advisory notes
Building Commission NSW has guidance on carrying out safe and compliant installations. Refer to the following advisory notes:
Heat pump fact sheet requirements
You must give customers a copy of the IHEAB Heat Pump Water Heater Fact Sheet before they agree to an upgrade. This is before they sign the nomination form and start the installation.
It’s good practice to keep records as evidence of providing the fact sheet.
Replacing or installing an air conditioner requires an electrical licence, not an air conditioning license. Air conditioning licences allow only for repairing and replacing parts. They do not allow for replacing the system.
For replacements, electrical components must meet requirements of AS/NZS 3000 which requires:
- a Type A RCD
- a local isolator
- ensuring the installation wiring meets the requirement of the system being installed.
This means a licensed electrician is required for replacing air conditioners. Not only for installations.
A Certificate of Compliance for Electrical Work must be provided to the customer and Building Commission NSW.
Customers must pay at least a $200 (excluding GST) net amount towards equipment installation and other associated work costs. This minimum cost applies:
- per item of equipment
- when installing a refrigerated cabinet under Activity F1.2
- when installing a heat pump water heater under Activity F16 and F17.
Note that:
- implementations of Activity Definition F1.1 cannot be undertaken from 19 June 2024 until further notice (see Changes to refrigerated cabinet activities section above)
- a heat pump water heater system comprising multiple heat pump water heaters joined by a manifold is considered one item.
ACPs must arrange to complete a Site Assessment Report for each implementation of Activity Definitions F4 and F8–F17. ACPs may use the template below or create their own report.
As an ACP, you need to arrange for the installer to complete an Installer Declaration when implementing some activities. See the IHEAB Method Guide for details. ACPs may use the template below or create their own declaration.
When installing a replacement refrigerated cabinet, the new one must be the same Product Class as the old one. Installers must declare that this is the case. ACPs are responsible for their installers being trained to identify different product classes.
The specific Activity Definitions in the ESS Rule outline the Product Class for different types of refrigerated cabinets.