In New South Wales there is a program under the NSW Government’s Household Energy Saving Upgrades scheme that offers upfront discounts on installing or upgrading to more energy-efficient air conditioning systems. If you’re considering replacing an old air conditioner or installing a new one, this guide will help you understand who’s eligible, how much you might save, what products qualify, and how to claim.
What is the NSW Air Conditioner Rebate?
The NSW Air Conditioner Incentive provides discounts to lower the cost of installing or replacing existing air conditioning with energy-efficient models. It is offered through the NSW Household Energy Savings Scheme which also offers discounts for heat pump hot water systems and solar batteries.
In practice installing an efficient air conditioner will generate Energy Savings Certificates (ESCs) depending on how efficient the new air conditioner is and if its upgrading an older inefficient model. The installer will create the certificates and sell them on your behalf in order to provide you a upfront discount. If you are installing a eligible air conditioner from a registered installer, you will see the amount of the rebate stated on your quote.
The aim is to help NSW households and small businesses save on electricity bills, reduce energy use, and support emissions reduction. Upgrading to a more efficient air conditioner can also reduce maintenance costs and help improve comfort in summer and winter.
NSW Rebate Amounts for Common Air Conditioner Scenarios
Below is a table of typical scenarios for a 6 kW air conditioner, to give NSW homeowners a sense of how much they can save. These are illustrative ranges, based on what the government states and published installer quotes.
| Scenario | Indicative Upfront Discount (NSW) |
|---|---|
| Installing a new 6 kW system (no prior AC or replacing non-efficient cooling only) | Up to $550 |
| Replacing an old AC with a new 6 kW split system | Up to $560 |
Actual amounts depend on installer, product selected, and installation complexity.
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Key Factors That Will Affect the Size of the NSW Discount
Here are the top factors that influence how much discount you’ll get under the NSW incentive:
- Model efficiency – More efficient units (higher rated under MEPS or other standards) qualify for larger discounts.
- System capacity (kW size) – A 6 kW system is the benchmark used frequently; smaller or larger units may get proportionally adjusted discounts.
- Installer / ACP partnership – The installer must participate in the scheme or be partnered with an Accredited Certificate Provider (ACPs). Different ACPs will offer slightly different prices for the created certificates.
- Location & complexity of installation – Travel, building access, and complexity of install can affect quote and thus affect how much of the discount you receive.
- Energy savings potential / baseline condition – How inefficient the old system is (if replacing) or the absence of an old AC (i.e. a new install) influences the benefit. A very inefficient old unit replaced tends to give more savings and thus greater incentive.
Eligibility Criteria for the Air Conditioning Rebate in NSW
The eligibility criteria for the air conditioner rebate in NSW is fairly broad. It is available to any household or business that installs an eligible efficient product.
How To Claim The NSW Air Conditioner Rebate
The best way to get started is to understand the basics of air conditioning so you can get an idea of the right size system and type of air conditioner for your needs.
Then its important to connect with some local and trustworthy air conditioning installers to understand the potential costs and rebates for your specific installation circumstances. Through Solar Choice’s online quote comparison tool you can immediately browse through indicative quotes for various size air conditioning systems from local installers we’ve pre-vetted. Each installer will then provide you with a customised final offer based on your installation requirements and preferences.
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Conclusion
If you’re in NSW and thinking of upgrading or installing a new air conditioner, the NSW Air Conditioner Incentive under the Household Energy Saving Upgrades scheme can significantly reduce your upfront cost — especially if you go with an efficient model and an eligible installer.
Review your eligibility, get a few quotes, confirm the model meets efficiency standards, and make sure your installer is partnered with an Accredited Certificate Provider. Doing all that will help you get the best discount available, lower your energy bills, and stay more comfortable year-round.
FAQs
Do I need a concession card or be low-income to be eligible?
No — the incentive is open to all NSW households and small businesses, provided you meet the product, installer, and model eligibility criteria.
Is the discount like a rebate I claim later, or is it applied up front?
The discount is upfront — included in the installer’s quote — so you pay less at the time of purchase.
Can renters access the NSW air con incentive?
Yes, renters can be eligible, but you will need permission from the landlord and must use an installer/ACP who participates in the scheme.
Will replacing my old unit always get me the maximum discount?
Not always — how old or inefficient the old unit is, the model you move to, and how complex the installation is will all affect the size of the discount.
- NSW Air Conditioner Rebate: What You Need to Know - 16 September, 2025
- Air Conditioner Rebate Victoria: All you need to know! - 15 September, 2025
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