HEAB

HEAB stands for the Installation of High Efficiency Appliances for Business method, also referred to as the Business Appliances method. It is a specific calculation method used within the NSW Energy Savings Scheme to establish eligibility and certificate entitlements for projects involving the installation of high-efficiency commercial appliances. The method was published by our glossary on 21 June 2023 and applies specifically to New South Wales.

Related guidance

What does HEAB stand for?

HEAB stands for the Installation of High Efficiency Appliances for Business method, also referred to as the Business Appliances method. It is a specific calculation method used within the NSW Energy Savings Scheme to establish eligibility and certificate entitlements for projects involving the installation of high-efficiency commercial appliances. The method was published by our glossary on 21 June 2023 and applies specifically to New South Wales.

What types of equipment does the HEAB method cover?

The HEAB method applies to high-efficiency refrigerated cabinets, liquid chilling packages, close control air conditioners, air conditioners, and similar high-efficiency commercial appliances for business use. These equipment categories represent common energy-consuming systems in food retail, hospitality, commercial offices and industrial facilities where efficiency improvements can generate measurable energy savings and certificate value under the NSW Energy Savings Scheme.

How does HEAB relate to the NSW Energy Savings Scheme?

HEAB is a prescribed calculation method under the NSW Energy Savings Scheme (ESS), which creates a market for Energy Savings Certificates (ESCs) from eligible energy-saving activities. Projects using HEAB must meet specific equipment, premises and implementation requirements established by the relevant method guidance. Accredited Certificate Providers can create ESCs under HEAB where the activity meets scheme conditions, though a technically sensible upgrade is not automatically eligible without proper method assessment and evidence.

What evidence and planning considerations apply to HEAB projects?

HEAB projects require careful planning around baseline establishment, implementation dates, and evidence collection before equipment changes occur. The applicable Energy Savings Scheme Rule version and implementation date matter significantly for eligibility. We recommend establishing the project boundary, modelling approach and M&V procedures while meaningful baseline data can still be obtained. Customer nomination and evidence documentation are required; an installer invoice alone does not establish certificate entitlement under the scheme.

How should commercial assumptions and savings be presented for a HEAB project?

An initial HEAB estimate should clearly show the activity, applicable rule version, energy calculation basis, certificate assumptions, commercial price date and any outstanding conditions. Engineering savings, scheme-recognised savings, created certificates and customer proceeds should be kept as separate quantities. A preliminary estimate is useful for screening but should be labelled as such until assumptions and evidence have been checked. Keep modelled payback separate from any verified operating results to maintain clarity on project status and outcomes.

What role can Northmore Gordon play in HEAB project assessment?

We offer energy audits, measurement and verification, feasibility assessment and certificate support services applicable to refrigeration and air-conditioning projects covered by HEAB. The company can assist with project scoping, evidence planning, baseline establishment, and navigating scheme requirements. We recommend submitting a project brief that describes the business decision, site locations, available energy data and the applicable scheme pathway to establish an appropriate assessment scope for HEAB eligibility and certification.

Why is early evidence planning important for HEAB projects?

Early evidence planning preserves measurement and funding options for HEAB projects. The NSW ESS requires baseline measurement procedures to be deemed appropriate by an M&V professional before the implementation date, with written reasoning provided. Delaying evidence collection until immediately before installation can make intended analysis difficult or impossible. We emphasise establishing useful metering requirements, data collection periods and baseline conditions while meaningful pre-project information can still be obtained, ensuring project eligibility and credible savings documentation.

How do HEAB method requirements differ from other energy efficiency schemes?

HEAB is specific to NSW and uses prescribed calculation methods rather than the flexible project-based approaches available in some other schemes. Victoria's Energy Upgrades scheme, for example, offers both standardised and project-based activities with different eligibility and evidence requirements. The applicable rule version, method guidance and scheme requirements must be matched to the proposed project before detailed advice is finalised. We recommend checking the governing activity document version and current scheme specifications rather than relying on historical case studies or outdated guidance.

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