ESS Rule and changes
This page has information about the Energy Savings Scheme Rule (ESS Rule). The ESS Rule applies to Accredited Certificate Providers (ACPs) and their energy savings activities. It provides detail about:
- nomination as the energy saver
- recognised energy saving activities
- product acceptance requirements
- eligibility equipment and implementation requirements
- calculation methods to determine how many Energy Savings Certificates (ESCs) can be created.
ACPs must understand and comply with the ESS Rule. See How to comply as an ACP for more information.
The latest ESS Rule will commence on 12 September 2025.
The previous version of the ESS Rule applies to all implementations from 19 June 2024 until 11 September 2025.
See the document hub for the ESS Rule for the ESS Rule for all versions of the Rule including the upcoming Rule.
The NSW Department of Climate Change, Energy, the Environment and Water develop the policy behind the ESS. It also updates the ESS Rule annually or when needed. To find out more about how the ESS Rule is updated and how to get involved, visit the NSW Climate and Energy Action page.
ESS Rule change commencing 12 September 2025
The ESS Rule, published on 29 August 2025 includes changes that will roll out over the next 12 months. The information below sets out what changes are happening and when. You can browse the changes by method. Some changes are ESS-wide and apply across all methods. Each section explains what has changed and what you need to do.
To see a list of specific changes to clauses in the Rule, download our ESS Reference Table.
ESS-wide changes
ESS-wide changes apply from 12 September 2025 and include new requirements on doorknocking and banned equipment.
What has changed
You cannot create certificates from activities that result from unsolicited doorknocking.
What you need to do
Update your training material. Make it clear that third-party marketing contractors must not do any unsolicited doorknocking.
What has changed
You cannot create certificates from banned equipment installations. The Scheme Administrator now has the power to ban equipment by publishing a notice.
No banned equipment notices have been published to date.
What you need to do
- Stay up to date with notices published by IPART.
- If a banned equipment notice is published, review the notice to understand what equipment has been banned and the time period for the ban.
- Equipment subject to a ban notice cannot be installed in implementations used to register certificates.
Home Energy Efficiency Retrofits (HEER) Method
What has changed
For activities from October 2025:
Monthly reporting requirements for all HEER activities in the ESS Rule will begin for implementations from October 2025. ACPs must report all HEER activities you complete in a calendar month. You must do this before the end of the next calendar month. That is, you must report all implementations in October by the end of November. This requirement is already part of existing HEER conditions of accreditation. You do not need to change anything.
What you need to do
- Continue reporting implementation data for all HEER activities for each month.
- Complete reporting requirements by the end of the next calendar month.
- Report monthly even if you have not done any activities. If you have no activities to report: Submit an email titled “NIL RETURN FOR HEER ACTIVITIES [INSERT REPORTING MONTH]”, to ensure you have complied with requirements.
See our Reporting requirements page for more information on reporting implementation data. If you also have an IHEAB accreditation, report IHEAB and HEER data in the same spreadsheet.
Note: When there is an application for amendment to a HEER accreditation, we will remove monthly reporting requirements from HEER accreditation notices, as this is now part of the ESS Rule.
What has changed
From 12 September 2025:
For activities from 12 September 2025, the lifetime of new air conditioners increases from 10 to 12 years.
What you need to do
Update your energy savings calculations to include the updated lifetime.
Location and installation requirements
What has changed
From 12 September:
Location requirements set out in AS/NZS 5149.3:2016 and manufacturer installation recommendations must be met where the replacement system is a split system with refrigerant flows between the evaporator and tank for all implementations.
What you need to do
Before starting any D17 or D19 water heater work, make sure your installers:
- understand the location requirements for AS/NZS 5149.3:2016, and
- follow manufacturer installation recommendations.
Heat pump warranties
What has changed
From 1 December 2025:
Where you replace a heat pump water heater with an Insulated Storage Volume of 700 litres or less:
- the equipment provided by the manufacturer(s) of the heat pump unit and tank must have a warranty against defects covering at least five years from the date of installation, purchase or supply as applicable; and
- if the person giving the warranty against defects is not in Australia, the warranty must also include the name and contact details for a contact in Australia in the event of a product failure.
What you need to do
Talk to your water heater manufacturer. Make sure 5-year warranties are in place for relevant heat pump units and tanks installed from 1 December 2025. Warranties must include an Australian contact in case the product fails. Keep evidence of the warranty.
What has changed
From 12 September 2025:
- Use the ‘Maximum Tested Input Power’ to calculate your energy savings instead of the ‘Nameplate Input Power’.
- Maximum Tested Input Power is also known as ‘High’ in the GEMS Registry.
- Projected Annual Energy Consumption is also known as Labelled Energy Consumption in the GEMS Registry.
- The words ‘where required’ have been added to Implementation Requirement 3 to make it clear that a qualified licence holder must perform or supervise the removal and or installation of the activity.
What you need to do
- Update your processes to make sure you use the correct information from the GEMS Registry.
- Make sure you understand when a qualified licence holder must perform the removal and installation of a pool pump. See the ESS Reference Table for more information.
What has changed
From 1 July 2026:
Activities that include gas water heaters or space heaters under the HEER method will end. Affected activities include:
- D11 – replace an existing gas fired water heater with a high efficiency gas fired water heater.
- D12 – install a high efficiency gas space heater or replace an existing gas space heater with a high efficiency gas space heater.
- D21 – replace an existing gas water heater with a solar (gas boosted) water heater.
The last date for a D11, D12 or D21 implementations is 30 June 2026. This is also the last date to register certificates for these activity definitions.
What you need to do
- Prepare for the end of gas water heater and space heater activities.
- Make sure you have completed all activities and registered certificates before 1 July 2026.
Installation of High Efficiency Appliances for Businesses
What has changed
For activities from October 2025:
The ESS Rule has introduced monthly reporting requirements for all IHEAB activities. ACPs must report all IHEAB activities that occurred in a calendar month before the end of the next calendar month. That is, you must report all activities in October by the end of November.
This requirement:
- begins for activities you have done in October, with the first monthly report to be provided to IPART by 30 November 2025.
- applies to all IHEAB ACPs even when there are no activities in a calendar month.
What you need to do
- Develop systems and processes to ensure you can meet monthly reporting requirements.
- Send your first report to IPART by 30 November 2025 (even if you did not do any activities in September).
- Where you have activities to report: Use the ESS Example Template – CSV Implementation Data document, save it as CSV file, and send it via email to ess.compliance@ipart.nsw.gov.au, or
- If you have no activities to report: Submit an email titled “NIL RETURN FOR IHEAB ACTIVITIES [INSERT REPORTING MONTH]”, to ensure you have complied with requirements.
- If you also have a HEER accreditation, report HEER and IHEAB data in the same spreadsheet.
See our Reporting requirements page for more information on reporting implementation data.
What has changed
From 12 September 2025:
For activity from 12 September 2025, the lifetime of new air conditioners increases from 10 to 12 years.
What you need to do
From 12 September 2025:
Update your energy savings calculations to include the updated lifetime.
What has changed
From 12 September 2025:
- Refrigerated Cabinet Product Classes 12 – 15 with an implementation date on or after 12 September 2025 may only be used to create Energy Savings Certificates for new (F1.1) and replacement (F1.2) refrigerated cabinet activities.
- Refrigerated Cabinet Product Classes 1 – 11 are suspended activities until further notice and cannot be used to create Energy Savings Certificates.
- The co-payment will increase from $200 to $1,000.
- Refrigerated cabinets with 2 or more display sides will not be eligible, even if they fall into Product Classes 12-15.
What you need to do
From 12 September 2025
- Only use Refrigerated Cabinet Product Classes 12–15 with one display side to create certificates from Activity Definitions F1.1 and F1.2.
- You must also collect a $1,000 co-payment for each implementation.
Location requirements
What has changed
From 12 September 2025:
Location requirements set out in AS/NZS 5149.3:2016 and manufacturer installation recommendations must be met where the replacement system is a split system with refrigerant flows between the evaporator and tank for all implementations.
What you need to do
Before starting any F16 or F17 water heater work, make sure your installers:
- understand the location requirements for AS/NZS 5149.3:2016, and
- follow manufacturer installation recommendations.
Co-payments, definitions, certificate limits and calculations
What has changed
- The minimum co-payment for F16 and F17 activities will increase from $200 to $1,000
- Energy Savings Certificates created from a single implementation of F16 or F17 are now limited to 5,000 for each system installed. A system is one standalone heat pump or multiple heat pumps manifolded together (where they are identical models joined in a series with a balanced water flow).
- A confidence factor (See ESS Rule Activity Definitions F16 and F17 Equipment Energy savings) is introduced to calculate:
- Deemed Equipment Gas Savings, and
- Deemed Equipment Electricity Savings.
- Definitions are introduced in the Equipment Energy savings section of the ESS Rule for F16 and F17 relating to:
- Confidence factor
- Individual Heat Pump Thermal Capacity
- Total Heat Pump Thermal Capacity
- Number of heat pumps
- Peak Load
What you need to do
From 12 September 2025:
- You must collect a co-payment of at least $1,000 for each implementation.
- Update your certificate calculation methods to include the confidence factor and limit certificates from a single implementation to 5,000 for each system installed.
- Include updated and new activity definitions in your processes.
Heat pump warranties
What has changed
From 1 December 2025:
Where you replace a heat pump water heater with an Average Insulated Storage Volume of 700 litres or less:
- the equipment provided by the manufacturer(s) of the heat pump unit and tank must have a warranty against defects covering at least five years from the date of installation, purchase or supply as applicable; and
- if the person giving the warranty against defects is not in Australia, the warranty must also include the name and contact details of who to contact in Australia in the event of a product failure.
What you need to do
- Talk to your water heater manufacturer. Make sure 5-year warranties are in place for heat pump units and tanks installed from 1 December 2025.
- Warranties must include an Australian contact in case the product fails. Keep evidence of the warranty.
What has changed
From 1 July 2026:
Activities that include gas fired steam boilers or water heaters under the IHEAB method will end. Affected activities include:
- F8 – replace existing gas fired steam boiler with a new high efficiency gas fired steam boiler
- F9 – replace existing gas fired hot water boiler or gas fired water heater with a new high efficiency gas fired hot water boiler or a new gas fired water heater.
The last date for a F8 or F9 implementations is 30 June 2026. This is also the last date to register certificates for these activity definitions.
What you need to do
- Prepare for the end of gas water heater and boiler activities.
- Make sure you have completed implementations and registered certificates before 1 July 2026.
Sale of New Appliances (SONA)
What has changed
From 12 September 2025:
No applications for accreditation will be accepted for the Sale of New Appliances (SONA) method.
What you need to do
Nothing. We will contact SONA applicants to understand if they want to proceed with the application.
What has changed
30 November 2025
The SONA method will end on 30 November 2025. This is the last date for activities under this method, as well as the last date to register certificates. If you have an implementation on 30 November 2025, you must register the certificates on that same day.
What you need to do
- Complete activities under this method by 30 November 2025.
- Register all certificates under this method by 30 November 2025.
- All accreditation conditions will continue to apply.
- ACPs must meet all audit and compliance obligations after the method ends.
- If you have a pre-registration audit condition, submit your audit scopes early. Leave enough time to complete audits and register certificates before 30 November 2025.
- If you have volumetric limits, make sure audits are complete. There should be no unaudited certificates.
How we will help
We will contact SONA ACPs to help them:
- finalise compliance obligations
- cancel the accreditation.
Commercial Lighting Energy Savings Formula (CLESF)
What has changed
From 12 September 2025:
No applications for accreditation will be accepted for the CLESF method.
What you need to do
Nothing. We will contact CLESF applicants to understand if they want to proceed with the application.
What has changed
31 March 2026:
The CLESF method will end on 31 March 2026. This is the last date for activities under this method, as well as the last date to register certificates. If you have an implementation on 31 March 2026, you must register the certificates on that same day.
What you need to do
- Complete activities under this method by 31 March 2026.
- Register all certificates under this method by 31 March 2026.
- All accreditation conditions will continue to apply.
- ACPs must meet all audit and compliance obligations after the method ends.
- If you have a pre-registration audit condition, submit your audit scopes a few months before the deadline. This gives enough time to complete audits and register certificates by 31 March 2026.
- If you have volumetric limits, make sure audits are complete. There should be no unaudited certificates.
How we will help
We will contact commercial lighting ACPs to help them:
- finalise compliance obligations
- cancel the accreditation.
What has changed
After 31 January 2026:
Applications for acceptance of lighting products for the commercial lighting method will not be accepted. The existing list of approved lighting products is still active. It should be used for all commercial lighting implementations conducted. It applies until the method ends on 31 March 2026.
What you need to do
Submit lighting acceptance applications by 31 January 2026.
Note: Product applications for lighting acceptance for the HEER method will continue. We will maintain the Accepted Products List for this method.
NABERS Baseline method
What has changed
From 12 September 2025:
Schools and retail stores are added to the list of building types that can be used to create certificates under the NABERS method.
What you need to do
Read the NABERS baseline method guide. It explains the types of buildings you can use to generate certificates using the NABERS Baseline method.
Project Impact Assessment with Measurement and Verification (PIAM&V) method
What has changed
From 12 September 2025:
ACPs must show that lighting equipment used in a PIAM&V project is either:
- a Standard Equipment Class as listed in Table A9.1 of Schedule A to the ESS Rule, or
- complies with safety and performance requirements when published by the Scheme Administrator.
Lighting products used in these implementations do not need to be on the Accepted Lighting Product List and we will not be accepting product applications for lighting acceptance for the PIAM&V method.
What you need to do
See the PIAM&V Method Guide. It explains how to meet lighting requirements for PIAM&V projects.
What has changed
From 1 July 2026:
New or replacement equipment involving gas will be discontinued for use in the PIAM&V method. Activities to be discontinued include:
- gas fired steam boiler
- gas fired water heater
- gas fired hot water boiler
- gas space heater.
Where the implementation date is on or after 1 July 2026, these activities cannot be used to create ESCs.
What you need to do
Ensure projects with these activities have an implementation date before 1 July 2026. Projects with implementation dates before that date can continue to create certificates and top-up certificate creation.
Metered Baseline Method (MBM)
What has changed
From 12 September 2025:
ACPs must demonstrate that lighting equipment used in a metered baseline project is either:
- a Standard Equipment Class as listed in Table A9.1 of Schedule A to the ESS Rule, or
- complies with safety and performance requirements when published by the Scheme Administrator.
Lighting products used in these activities do not need to be on the Accepted Lighting Product List and we will not be accepting product applications for lighting acceptance for the MBM method.
What you need to do
See the MBM Method Guide for more information on meeting lighting requirements for MBM projects.
What has changed
From 1 July 2026:
New or replaced equipment from gas activities will end for the MBM. Discontinued activities include:
- gas fired steam boiler
- gas fired water heater
- gas fired hot water boiler
- gas space heater.
Where the implementation date is on or after 1 July 2026, these activities cannot be used to create ESCs.
What you need to do
Complete projects that include the above activities before 1 July 2026. Projects with implementation dates before that date can continue to create ESCs annually.
Public Lighting Energy Savings Formula (PLESF)
What has changed
From 12 September 2025:
ACPs must demonstrate that lighting equipment used in a public lighting project is either:
- a Standard Equipment Class as listed in Table A9.1 of Schedule A to the ESS Rule, or
- complies with safety and performance requirements when published by the Scheme Administrator.
Lighting products used for these activities do not need to be on the Accepted Lighting Product List and we will not be accepting product applications for lighting acceptance for the PLESF method.
What you need to do
See the Public Lighting Method Guide for more information on meeting lighting requirements for public lighting projects.
