Shorter Paybacks, Bigger Impact: NSW Program Makes Energy Projects Stack Up
There are many viable energy-saving projects across the state that aren’t progressing – not because they don’t save energy, but because the financials don’t stack up.
The NSW ESSThe 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. Safeguard Acceleration Panel aims to change that.
What Is the Safeguard Acceleration Panel?
This NSW Government initiative offers, through the generation and sale of Energy Saving Certificates (ESCs), enough funding to get energy saving projects across the line.
It gives Accredited Certificate Providers (ACPs) like Northmore Gordon the ability to lock in a future ESCAn energy savings certificate (ESC) is a tradeable certificate created under Division 7 of Part 9 of the Electricity Supply Act 1995. Each ESC represents one notional megawatt hour (MWh) of energy. price for projects – removing market uncertainty and improving project payback calculations.
Real-World Example: How the Program Can Flip a Project Decision
Scenario: Local Aquatic Centre Boiler Replacement
• Current system: Gas boiler
• Proposed upgrade: Heat pump
• CAPEX: $3,000,000
• OPEX savings: $500,000 per year
• ESCs generated: 25,000
• Market ESC price: $20 (after M&V fees)
• ESC income: $500,000
• Payback: 5 years
• Internal payback threshold: 4 years
• Project status: Not approved
Enter Safeguard Accelerator:
• Northmore Gordon negotiates ESC price of $41 (net) through the program
• New ESC income: $1,025,000
• New payback: 3.95 years
• Project status: Signed off
What We Need From You
To assess if your project is eligible for the program, we’ll need a few key inputs:
1. Energy Saving Plan A short summary of the proposed upgrade — what it replaces and how it saves energy.
2. Estimated Energy SavingsElectricity or gas savings or both. Annual reduction in electricity or gas (kWh, GJA gigajoule (GJ) is the equivalent to 1 billion joules. A joule is a measure of the energy required to send an electrical current of one ampere through a resistance of one ohm for one second. One GJ is equal to 277.8 kilowatt hours ( kWh), 1.055 million British thermal units (Btu) or 0.17 barrels of oil., etc.).
3. Capital Cost (CAPEX) Total cost to implement the upgrade.
4. Payback Expectations Your internal threshold for project approval – 3, 4, or 5 years?
With this, Northmore Gordon can model ESC revenue under the guaranteed pricing and confirm if the project qualifies for program support.
Who Should Apply?
This program is ideal for:
• Industrial sites and large facilities with high energy use and capital upgrades planned
• Safeguard Mechanism participants looking to reduce emissions and exposure
• Organisations with shelved projects that didn’t previously meet payback thresholds
• Facility types such as manufacturing plants, hospitals, aquatic centres, universities and data centres
Northmore Gordon’s Role
As an ACPAccredited Certificate Provider - a person accredited under the NSW ESS to create ESCs for Recognised Energy Saving Activities. and engineering-led consultancy, we do more than just process certificates:
• We develop M&V-compliant project plans
• We calculate and forecast ESC yield and revenue
• We manage application and compliance
• We build board-ready business cases for internal approval
Timing Is Critical
Projects must be commissioned by January 2026 to qualify. Given engineering, procurement, and installation timelines, we need to identify viable projects well before then.
Northmore Gordon is actively assessing projects for inclusion in our Safeguard Acceleration Panel portfolio now.
Next Steps
If you have a proposed energy upgrade in NSW – even one previously considered “not viable” – it may now qualify.
Contact Jack Warren at Northmore Gordon or submit your interest here for:
• A quick eligibility check
• ESC revenue modelling
• Payback optimisation under the Safeguard Acceleration Panel
Let’s turn good ideas into great projects and Do More With Less.
