Government Subsidies Explained

Learn more about how the Energy Efficiency Rebate Programs work for each state and territory, and how Ozwide Group can help you take full advantage of the opportunities available to your business to transform your energy efficiency.

Victorian Energy Upgrades Program

What is the Victorian Energy Upgrades (VEU) program?

The Victorian Energy Upgrades program helps Victorians cut power bills and reduce greenhouse gas emissions by giving households and businesses access to discounted energy-efficient products and services, like LED Lighting, Solar, and HVAC etc. The VEU program was allocated a further $17M in the 2020/21 State Budget, and is due to cease in 2025.

How does the Victorian Energy Upgrades program work??

When you engage us, for example, to upgrade your LED lighting, we’ll calculate your reduction in energy consumption prior to installation.

For each tonne of greenhouse gas you reduce, Ozwide Group will work with an Accredited Certificate Provider (ACP) to create one Victorian Energy Efficiency Certificate (VEEC) which has a variable ‘market value’.

The total number of certificates your project will generate is then multiplied by the current market value for the certificates, giving you the total dollar discount that you are eligible for. This discount is applied to the total cost of your upgrade.

Depending on the upgrades carried out, as well as other factors like annual hours of operation, geographic location, and the cost of equipment, there can be more complex calculations that determine how the rebates and discounts are applied.

What does this mean to me?

This means that you can upgrade things like LED lighting at a significant discount – oftentimes at no cost to you.

As well as this up-front saving to upgrade your fittings, you’ll also tap into the ongoing savings associated with running costs (up to 70% reduction in energy costs) and ongoing maintenance savings (parts and labour).

NSW Energy Savings Scheme

What is the NSW Energy Savings Scheme?

The NSW Energy Savings Scheme (ESS) provides NSW households and businesses with financial incentives to invest in projects which will reduce their energy consumption. Incentives are available to install new equipment or modify a current system.

Different equipment and processes are eligible, including but not limited to:

  • lighting
  • heating, ventilation, and air conditioning (HVAC) systems
  • motors, fans and pumps
  • compressed air systems
  • refrigeration
  • hot water and steam systems
  • furnaces

In December 2020, the NSW Government increased the existing energy savings targets of the ESS for the years 2022 to 2025 and set new targets for the years 2026 to 2050.

The target will increase by 0.5% each year from 2022, reaching 13% in 2030. The target will then remain at 13% until the end of the program in 2050.

How does the Energy Savings Program work?

This process, in principle, works similarly to the Victorian Energy Upgrades.

When you engage us, for example, to upgrade your LED lighting, we’ll calculate your reduction in energy consumption prior to installation.

 For each tonne of greenhouse gas you reduce, Ozwide Group will work with an Accredited Certificate Provider (ACP) to create one NSW Energy Saving Certificate (ESC) which has a variable ‘market value’.

The total number of certificates your project will generate is then multiplied by the current market value for the certificates, giving you the total dollar discount that you are eligible for.

This discount is applied to the total cost of your upgrade.

Depending on the upgrades carried out, as well as other factors like annual hours of operation, geographic location, and the cost of equipment, there can be more complex calculations that determine how the rebates and discounts are applied.

What does this mean to me?

This means that you can upgrade things like LED lighting at a significant discount.

As well as this up-front saving to upgrade your fittings, you’ll also tap into the ongoing savings associated with running costs (up to 70% reduction in energy costs) and ongoing maintenance savings (parts and labour).

Being the first business accredited to participate in Commercial Lighting upgrade activities in the Victorian Energy Upgrades (VEU) and being the largest participant in the NSW Energy Saving Program (ESS) means that we understand how to work with businesses to maximize your participation in both these and other energy efficiency initiatives.

Frequently Asked Questions

Who pays for these programs?

In short, we all do! The energy retailers are mandated by law to participate in the programs in the relevant states, and they are allowed to pass the cost onto their residential and domestic consumers, normally reflected in the ‘Network charges’ component of your bill. It is this pool of money that the retailers utilise to pay for the number of certificates they are required to buy from the Accredited Persons each year. In short, businesses and residents choosing not to participate in the program are effectively subsidising the participation of others.

What level of price erosion has occurred in LED lighting?

It has been estimated that the price of LED lighting product costs has reduced by over 70 per cent in the last five years. In combination with the rebates available, this has ensured that the payback period for LED lighting upgrades has been brought back to less than two years in most instances.

If you own, manage or operate a building asset portfolio from $1m to $1bn+, we can help you unlock significant savings and competitive advantage, more quickly than any other provider.