ESS Rule

The Energy Savings Scheme Rule (ESS Rule) applies to Accredited Certificate Providers (ACPs) and their energy savings projects. It provides detail about:

  • eligibility requirements
  • calculation methods for determining the number of energy savings certificates (ESCs) that can be created.

ACPs must understand the ESS Rule. For information on your obligations, refer to Obligations of an ACP.

The current ESS Rule is effective from 1 August 2022. Previous versions of the ESS Rule are provided for reference.

A new version of the ESS Rule will commence on 14 April 2023 (see below for more details).

Relevant documentation

Energy Savings Scheme Rule of 2009 – 1 August 2022 (Current Rule)

The Office of Energy and Climate Change within NSW Treasury is responsible for developing the policy behind the ESS and updating the ESS Rule annually or at other times as required. To find out more about how the ESS Rule is updated and how to get involved, please visit the Energy NSW website.

2023 ESS Rule change

The most recent ESS Rule change was gazetted on 27 January 2023 and will commence on 14 April 2023. It adds new eligible fuels and aims to simplify and clarify the Rule.

Energy Savings Scheme Rule of 2009 – 14 April 2023

Key changes to the ESS Rule will include:

  • changes to energy savings equations and Equation 1
  • a decrease in the IHEAB co-payment for refrigerated cabinets from $250 to $200
  • introduction of new eligible fuels, with flow on changes to Project Impact Assessment with Measurement and Verification (PIAM&V) and Metered Baseline Method (MBM)
  • a new process to allow for Non-Routine Events (NREs) and Adjustments (NRAs) in PIAM&V, including a requirements guide that ACPs must follow to account for Non-Routine Events
  • new Recognised Energy Savings Activity (RESA) criteria that focus on reducing consumption of non-renewable fuels and excluding activities that increase gas consumption
  • new NABERS building types for warehouses and cold storage
  • minor changes to Home Energy Efficiency Retrofit (HEER) and Installation of High Efficiency appliances for Business (IHEAB) activity definitions, including allowing for replacement of existing high efficiency motors under IHEAB.

We have published a Quick Reference Guide to provide information on these changes.

This change will require you to update your processes for registering certificates to make sure that you don’t include the Regional Network Factor in electricity savings uploaded to TESSA when you apply to register certificates. You may also need to update other processes, documents and systems. You can begin this process now so you are ready when the Rule commences on 14 April.

The information in the Quick Reference Guide can help you understand how the changes impact you and your business.

1 August 2022 Rule change

A reminder that following changes to the Rule for refrigerated cabinets that commenced on 1 August 2022:

  • there is now a co-payment requirement for installation of refrigerated cabinets
  • baselines for new versus replacement equipment (activities F1.1 and F1.2) have been split
  • refrigerated cabinet activities can only be done in non-residential buildings.

Please refer to the guides below for more information on how changes to the ESS Rule impact you.

Information guides

Quick Reference Guide – 2023 ESS Rule Change – February 2023
Fact Sheet - ESS Rule Amendments - August 2022
Fact Sheet – ESS Rule Amendments – January 2022
Fact Sheet – Air Conditioners and Refrigerated Cabinets – February 2022
Fact Sheet – Water Heaters – January 2022