Proven Way To Make An Extra $3,000 On Every Water Heater Installation
Climate targets and carbon emissions goals and decarbonisation plans and greenhouse gas monitoring…Sometimes all the rhetoric can be overwhelming and distract us from the actual work that needs to be done to make these goals a reality.
That’s why we need plumbers and other skilled trades to turn plan into action.
Even though plumbers are doing the important work of actually installing new and more efficient equipment, many of them are leaving thousands of dollars on the table when they complete jobs without capturing the accompanying certificates that they deserve.
If you’re not used to regulatory language, it can seem complicated and burdensome. But when you realise just how simple the process is — some of it being paperwork that plumbers are already required to do — you will be able to earn up to an extra $3,000 per water heater installation.
For many plumbers, this could mean an extra $12,000 in hand every week.
What are the energy efficiency certificates?
Certificates represent a reduction in carbon emissions from qualifying energy efficiency upgrades. As state and federal governments ramp up their decarbonisation efforts, electricity retailers are required to show proof of progress by submitting an annual quota of certificates.
Replacing and upgrading water heaters is a qualifying energy efficiency job… and it’s one that many plumbers do routinely.
At the state level, both Victoria and New South Wales offer certificates for replacing water heaters. The Victorian Energy Upgrades (VEU) program aims to collect 6.5 million certificates in 2021. That number is set to rise to 7.3 million by 2025.
Similarly, the Energy Savings Scheme (ESS) in New South Wales penalises electric retailers who do not meet their target certificate quotas. On top of the Victorian Energy Upgrades is a Victorian government energy efficiency program that gives every Victorian household and business the opportunity to receive rebates or discounts on energy saving products. More and The NSW Energy Savings Scheme (ESS) provides financial incentives to install, improve or replace energy savings equipment and appliances in NSW households and businesses. The ESS was established in 2009. Financial incentives are in the form of tradeable certificates, called energy savings certificates (ESCs). Generally, householders and businesses who fund energy savings activities transfer the right to create ESCs to Accredited Certificate Providers (ACPs) in return for a discount on the cost of the energy savings activity. The MWh savings from the project determines the number of ESCs that can be created. The ESS works by allowing ACPs to create and register ESCs for energy savings that are supported with appropriate evidence. ESCs are then purchased each year by mainly electricity retailers operating in NSW to meet their share of a legislated annual energy savings target. More, the federal government also offers certificates. Plumbers can take advantage of both the federal and the appropriate state certificate when providing their service.
One way or another, certificates will be acquired. Since plumbers installing water heaters have already done the intense labour, they might as well be rewarded by allowing their work to count towards Australia’s carbon reduction plan.
How to collect the water heater certificates
Regulations and political dialogue can be tedious and seem complicated. Sometimes it is.
In the case of water heater certificates, however, the process is so easy and financially rewarding that plumbers will be looking for ways to add more water heater upgrades to their weekly project lineup.
Receiving a certificate can be as simple as:
- Taking 5 specified photos during the course of the water heater installation job &
- Sufficiently filling out paperwork for provided plumbing and/or electrical services
While the photos may be a new element to plumbers’ work, they are taken on-site and require little time. The paperwork is already a job requirement, so by simply understanding the appropriate details needed for regulatory purposes, plumbers will be able to take advantage of the lucrative certificates.
With the new water heater installed, the photos taken, and the paperwork filled out, the material is submitted to a regulator for approval. Once approved, appropriate certificates will be given.
How to monetise the certificates
Due to the large number of certificates needed by electricity retailers, participants will only be able to effectively monetise certificates in the wholesale market.
This can be challenging for small business plumbers who are doing one to three water heater jobs a week.
Fortunately, there is a simple solution that streamlines the regulatory process and assures you get paid for your individual certificates.
How Northmore Gordon makes the certificate process easy
At Northmore Gordon, we have the capacity to aggregate large enough quantities of certificates to participate in the wholesale market.
That means we want to make it as easy as possible for plumbers to get certificates and be fairly compensated for their critical work.
To streamline the certificate process, Northmore Gordon:
- provides training on what photos to take and what information needs to be included on paperwork
- shares an app outlining a step-by-step certification process so that plumbers don’t have to worry about missing something
- manages all of the third-party regulatory relationships once plumbers’ photos and paperwork is completed
Dealing with regulation is what Northmore Gordon does, so we want to remove the headache and uncertainty plumbers feel towards certificates and replace it with a steady cashflow.
A cashflow that you deserve for helping the state meet its carbon emissions goals.
When it’s all said and done, plumbers have already put the work in. Northmore Gordon is here to make sure that the work is properly recognised and that plumbers receive the payment they deserve.
If you provide water heater upgrades or other energy efficiency services, give us a call today on 1300 878 500 so that we can get you set up to make an extra $3,000 per installation.