Heating and cooling rebates in New South Wales
Certificates on efficiency, not on what you replace.
What you can claim towards heating or cooling in New South Wales, what the systems actually cost to run here, and the local facts that change the answer — the climate, the tariff structure and the grid.
What you can claim in New South Wales
Energy Savings Scheme (ESS)
$200 to $2,600 off a high-efficiency reverse cycle system — indicatively $200 to $2,600.
- The system has to meet the scheme's high-efficiency threshold — not every model on the shop floor qualifies.
- Covers both ducted and split systems, new installs and replacements.
- Applied by an accredited provider as an upfront discount on the invoice.
Administered by NSW Climate and Energy Action. Official scheme page. Last verified 5 September 2026.
Why New South Wales is different
New South Wales runs its heating and cooling incentive through the Energy Savings Scheme, the same mechanism as the hot water upgrade. It is worth $200 to $2,600 off a high-efficiency reverse cycle system, ducted or split, new install or replacement.
The important qualifier is "high-efficiency". Not every model on a retailer's floor meets the scheme's threshold, and a cheaper unit that does not qualify can easily cost more once the missing discount is counted. Ask the installer which specific model attracts the discount before you choose one.
On the underlying economics, Sydney is genuinely balanced — 478 heating degree days against 683 cooling. It is one of the few Australian capitals where a system needs to do both jobs well rather than being chosen for winter.
What it costs to heat and cool a house here
A 160 m² house built before 2005, heated and cooled for a full year at New South Wales's reference rates. On these assumptions the cheapest option in New South Wales is single split system at about $363 a year — though read the conditions column, because it is not conditioning the same amount of house as the ones below it.
| System | Conditions | Per year | Installed | 10-year total |
|---|---|---|---|---|
| Single split system | One main living area | $363 | $2,600 | $6,232 |
| Multi-split system | Most of the house | $820 | $8,500 | $16,703 |
| Ducted reverse cycle | The whole house | $1,188 | $15,500 | $27,381 |
| Ceiling fans | Cools only — you would still need something for winter. | |||
| Ducted evaporative cooling | Cools only — you would still need something for winter. | |||
| Electric panel or fan heater | Heats only — you would still need something for summer. | |||
| Gas space heater | Heats only — you would still need something for summer. | |||
| Ducted gas heating | Heats only — you would still need something for summer. |
A 160 m² pre-2005 house in New South Wales — 478 heating and 683 cooling degree days — at 33.1c/kWh, heating and cooling for a full year. Read the conditions column: the cheap options are partly cheap because they condition less of the house.
Your own house will differ. Put your floor area, insulation and rates into the calculator and every figure recalculates.
Every state, for comparison
| State or territory | Scheme | Indicative value | Deadline |
|---|---|---|---|
| Victoria | Victorian Energy Upgrades (VEU) | $1,000–$3,500 | Changes 30/09/2026 |
| New South Wales | Energy Savings Scheme (ESS) | $200–$2,600 | — |
| Australian Capital Territory | Home Energy Support Program | $0–$2,500 | — |
| South Australia | Retailer Energy Productivity Scheme (REPS) | $300–$1,500 | — |
| Queensland | Climate Smart Energy Savers | $0–$1,000 | — |
| Western Australia | no state scheme | — | — |
| Tasmania | no state scheme | — | — |
| Northern Territory | no state scheme | — | — |
There is no federal rebate for heating or cooling. Small-scale Technology Certificates apply to water heaters and solar panels only, so unlike a hot water upgrade there is no national floor — what you get depends entirely on your state. Every figure is indicative and delivered as a discount by an accredited installer rather than claimed back. Last verified 5 September 2026.
Frequently asked questions
What air conditioning rebate can I get in New South Wales?
Indicatively $200 to $2,600, through the Energy Savings Scheme (ESS). It is delivered as a discount on your installation invoice by an accredited provider rather than claimed back afterwards, so it has to be arranged before the work is done.
Is Sydney a heating or a cooling climate?
478 heating degree days against 683 cooling, so genuinely balanced, which is unusual. A system here needs to do both jobs properly rather than being chosen for one season.
How much does it cost to run a ducted system in New South Wales?
About $1,188 a year for a 160 m² pre-2005 house at 33.1c per kilowatt hour, heating and cooling combined. A multi-split in the same house comes to about $820, but it is conditioning less of the house — that is most of the difference, not better hardware.
Would insulation save more than a new system in New South Wales?
Almost certainly. Taking the same house from pre-2005 to a 6-star standard cuts heating energy to 30% and cooling energy to 60% — a bigger reduction than any system change on the market, and it applies whichever system you end up with. No scheme in New South Wales pays for it, which is precisely why it gets overlooked.