Upgrade costs

Upgrade costs can vary

The cost of an upgrade depends on the system size, installation complexity and any services that may be needed. Installers can offer discounts to decrease the cost of an upgrade. 

We don’t set prices, so we can’t advise what different products should cost. It depends on the system, services needed and job complexity. 

Review all quotes carefully and choose a system that meets your needs. 

Your chosen installer will give you a quote that details the work, the discount and the total cost. Ask them if your quote includes extra charges like site preparation, electricals and removing your old system.

Minimum payments

Some upgrades require you to make a minimum payment. You might need to pay more than the minimum depending on the upgrade costs.

The minimum payment amount can vary depending on: 

  • product type 
  • energy consumption of the product (typically called capacity and is listed in kilowatt hours (kWh))
  • dwelling type
  • business size. 

Minimum payments for homes and small businesses*

Minimum payment Products
$30
  • LEDs
  • CFLs (only to replace floodlights)
  • windows
  • doors 
  • chimney dampers 
  • draught proofing 
  • external blinds 
  • low-flow showerheads 
  • space ventilators
  • self-sealing exhaust fans. 
$200
  • pool pumps
  • heat pump water heaters
  • solar water heaters
  • solar batteries (up to 2 kWh - 28 kWh capacity, for government owned/managed sites and certain low-income or exempt energy programs).
$500
  • air conditioners (except multi-split or ducted systems).
$1,000
  • multi-split air conditioners (up to 15kW capacity)
  • ducted air conditioners (up to 15kW capacity)
  • solar batteries (20kWh – 200kWh capacity, for apartments and 4+ individual dwellings).
$2,000
  • multi-split air conditioners (greater than 15kW and less than 20 kW capacity)
  • ducted air conditioners (greater than 15kW and less than 20 kW capacity).
$3,000
  • multi-split air conditioners (with at least 20kW+ capacity)
  • ducted air conditioners (with at least 20kW+ capacity).

*a small business is defined as consuming less than 100 MWh per year

Minimum payments for businesses and commercial industries

Minimum payment Products
$1,000 
  • refrigerated cabinets
  • air conditioners, (except multi-split and ducted systems)
  • heat pump water heaters.
$3,000 
  • multi-split air conditioners (with at least 30kW+ capacity)
  • ducted air conditioners (with at least 30kW+ capacity).
$5,000
  • solar batteries (20 kWh ≤ 200 kWh capacity, not for residential buildings or data centres).

How minimum payments apply

Tables 1 and Tables 2 in the ESS Rule and clauses 8.1.1(f), 8.1.7(f), and 8.1.13(f) in the PDRS Rule set out whether the minimum payment that the purchaser must make applies on an implementation or an equipment basis. 

For air conditioners, minimum payments apply on a per air conditioner basis (not across a site). The table below provides a worked example of the minimum payments required where 4 air conditioners are installed at the one site.

Minimum payment exemptions under Low income and Exempt Energy Programs

A minimum payment may not apply if the upgrade is done under a low-income energy or exempt energy program. Check with your installer to find out if you are exempt from the minimum payment.

Air conditioner minimum payment example

System type Number of systems Cooling capacity Minimum payment
Single split 2 5 kW

2 x $500 = $1,000

 
Multi-split 1 10 kW $1,000
Ducted 1 20 kW $2,000
Total payment = $4,000 (excluding GST)

Note: Air conditioner minimum payments for multi-split and ducted systems are scaled based on cooling capacity. Cooling capacity for determining the minimum payment is the lessor of the:

  • cooling capacity of the outdoor unit or
  • sum of the cooling capacities of the indoor units.

You can also refer to our HEER Method Guide or the IHEAB Method Guide for further details on how minimum payments apply.

Other resources

Here are a few resources below that might help you understand upgrade costs. 

NSW Climate and Energy Action
IPART