The NSW Government is improving its Energy Savings Scheme (ESS) to make it more affordable for households and businesses to purchase and install energy efficient products.
Electrical appliances can account for 25 per cent of home energy use, so by using energy efficient products consumers can help push down their household energy bills.
Minister for Industry, Resources and Energy Anthony Roberts and Environment Minister Mark Speakman today announced three key changes to the scheme that could save households and businesses up to $8.2 billion on their energy bills during the life of the scheme.
· The energy savings target will be increase from 5 per cent to 7 per cent in 2016 and progressively to 8.5 per cent by 2019. This is a 70 per cent increase in the target.
· It will be expanded to provide incentives for households and businesses to save gas.
· It will be extended to 2025.
Mr Roberts said more jobs and opportunities would be created for tradespeople and appliance retailers as the demand to improve efficiency grew.
“People are telling us that they want to invest in their homes and businesses to be more efficient and reduce their bills – we’re making it easier for them,” Mr Roberts said.
“More than 3,000 people are employed in the Australian energy efficiency industry, so the reforms will deliver new jobs and grow the industry. We’re expecting Western Sydney in particular to really benefit as homes, warehouses, and workplaces make savings.”
Mr Speakman said while all consumers will benefit from reduced energy prices due to avoided infrastructure costs, those actively participating in the Energy Saving Scheme would save more by making upgrades.
“Across the state, households that invest in energy efficient products are expected to save on average, around $42 a year, while small businesses, on average will save around $128 a year off their energy bills,” Mr Speakman said.
“The scheme reduces the upfront costs of buying and installing energy efficient goods, so more people can afford efficient appliances and knock down their energy bills.”
ENERGY SAVING SCHEME EXAMPLES
Upgrading your hot water system
· For a gas connected household, replacing a continuous electric storage hot water system with a 5 star instant gas hot water system could cost around $1,200 more than replacing it with the same electric system.
· An accredited plumber could access the ESS and offer a 5 star instant gas hot water system for up to $480 less than the normal price.
· In this case, the household could save up to $480 off the purchase and installation price and could save up to $325 a year in running costs.
· This means that the bill savings could cover the additional cost in just over two years, and the household could save up to $3,900 in energy bill savings over 12 years.
Upgrading your lights
· Hiring an electrician to replace ten halogen downlights with LEDs could cost about $310.
· An accredited electrician could access the ESS and install ten LED upgrades for up to $90 less than the normal price.
· The household could save up to $90 off the installation cost and could save up to $85 a year in running costs.
· This means the bill savings could cover the additional cost in around two and a half years, and the household could save up to $850 in energy bills over 10 years.
Purchasing a high efficiency fridge
· A 3.5 star fridge could cost around $100 more than a 2 star fridge.
· An accredited appliance retailer could access the scheme to offer 3.5 star fridges for up to $20 less than their normal price.
· The household could save up to $20 off the purchase price and could save up to $17 a year in running costs.
· This means the bill savings could cover the additional cost in just over four years, and the household could save up to $205 in energy bills over the fridge’s 12 year lifetime.