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Electricity prices across NSW have been rising, with some households seeing bill increases of up to 9.7%. Most people feel this most during long summers and cold winter nights, when air conditioners and heaters run for hours at a time.
In fact, heating and cooling alone account for roughly 40–50% of a home’s total energy use. This places pressure not only on household power bills but also on the electricity grid during peak demand periods.
To address this, the NSW Government has focused on improving home energy efficiency, particularly by encouraging the use of high-efficiency electric air conditioners through the NSW Energy Savings Scheme (ESS).
This is where rebates come in. However, the term is often misunderstood. What many people call a rebate isn’t money sent back after you buy. In NSW, these are cost savings applied upfront when purchasing or installing an eligible air conditioner.
These upfront discounts are provided by an Accredited Certificate Provider (ACP) under the NSW Energy Savings Scheme (ESS). The goal is to reduce overall energy consumption, lower emissions, and help households save on running costs over time.
If you’re unsure what these rebates are or how they work, keep reading. We’ll break it all down and show you exactly how to claim them.
What Makes an Air Conditioner Eligible for NSW Rebates?
Eligibility is largely based on the following factors:
- The air conditioner must be electric and not gas-powered.
- It must comply with or exceed the Minimum Energy Performance Standards (MEPS).
- It must have good efficiency performance, such as good star ratings and actual energy savings.
If the air conditioner is an inverter type with good star ratings and is replacing an old or inefficient air conditioner, then it is likely to be eligible.
So which air conditioners actually qualify? Let’s break it down.
Eligible Type 1 – Split System Air Conditioners
Split systems are popular in Australia for good reasons. They’re made up of a wall-mounted indoor unit connected to an outdoor compressor.
They have a simple setup, a clean look and offer reliable performance. These systems are suitable for single rooms or small zones like bedrooms, living rooms, or home offices.
Modern split systems qualify because they are efficient by design. Most use inverter compressors that adjust output instead of switching fully on and off. This can actually help cut energy use by 30–40% compared to older fixed-speed units.
Many current models sit at 6 to 7 stars, well above the minimum threshold.
Key features
- Quiet operation
- Easy installation without ducting
- Smart Wi-Fi control via apps
- Motion sensors
- Air purification
Popular models
Brands like Daikin, Rinnai, Mitsubishi Electric, Fujitsu, and Panasonic dominate this space. Their inverter-based systems are commonly approved by ACPs for certificate discounts.
Rebate estimate
For eligible split systems, households often see A$400 to A$800 taken off the upfront price. Larger or higher-star units tend to land at the upper end of that range.
Eligible Type 2: Ducted Air Conditioning Systems
Ducted systems are built for scale. One central unit pushes the air through ducts into multiple rooms that are controlled by zones and a thermostat.
They cost more, yes. But when properly sized and zoned, they can be efficient.
A zoned ducted air conditioning system qualifies since it ensures that energy is not wasted on empty rooms. It can reduce energy consumption by 20-30% compared to an old ducted air conditioning system, where the entire house is conditioned at once.
To qualify, the systems must meet MEPS standards, which require high star ratings for cooling and/or heating systems.
Key features
- Zoning capabilities that enable independent temperature control for different rooms and reduce energy usage by up to 52%
- Inverter technology that helps adjust power usage to maintain a consistent temperature, lowering energy bills.
- Smart control and automation allowing control via smartphone apps, timers and specialised zoning systems like AirTouch.
- Reverse cycle operation to provide both efficient cooling during scorching summers and heating in cold winters.
Popular models
Eligible systems must be listed on the GEMS Register and meet high-efficiency standards such as Daikin, Mitsubishi Electric, Panasonic, ActronAir, and Fujitsu.
Rebate estimate
For larger ducted systems, incentives often start around A$1,000 and can increase based on system size and efficiency scores.
Eligible Type 3: Reverse-Cycle Air Conditioners
Reverse-cycle systems are the backbone of NSW rebate programs; whether split or ducted, most eligible systems fall into this category.
They are cool in summer and warm in winter, using heat pump technology.
They qualify because they are far more efficient than traditional electric heaters. For every unit of electricity used, a modern heat pump can deliver 3 to 5 units of heating energy.
That efficiency is why governments push them so hard.
Key features
- Inverter compressors that adjust speed in real time
- Variable output that reduces start-stop energy spikes
- Annual energy savings of 30–50% compared to resistive heating
Popular models
Daikin Cora Series, Mitsubishi Electric MSZ-AP Series, and Fujitsu General Lifestyle Range
Rebate estimate
Reverse-cycle units with 7-star ratings or higher tend to unlock the strongest incentives, especially when replacing older heaters or air conditioners. Depending on the model’s efficiency, unit size, and installer, typical savings range from A$200 to over A$1,000.
Why Gas and Non-Efficient Systems Don’t Qualify
Some air conditioners miss out on NSW rebates because they don’t line up with where energy policy is headed.
Gas systems are the clearest example.
They don’t run on electricity, they don’t carry Energy Star ratings in the same way, and they don’t support the state’s shift toward electric heat pump technology. NSW rebate programs are built around cutting grid emissions.
This is why electric systems are favoured, and gas heating is left out.
Low-efficiency air conditioners also fall short. Systems with poor star ratings, older models without inverter technology and basic window or portable systems usually fail to meet MEPS requirements.
These systems draw more power than they should, cycle on and off too often and end up costing more to run over time.
Oversizing is another common issue. A bigger unit might sound better. However, if it’s too powerful for the space, it wastes energy and performs worse.
Many older systems were installed this way, and this is why they’re often excluded from rebate programs.
How to Claim NSW Rebates and Maximise Savings
Here is the step-by-step guide:
🟩 Find an ACP: Go to the official NSW energy saving website (like energy.nsw.gov.au) and find a list of approved providers.
🟩 Get Three Quotes: Prices and rebates can vary between installers. Getting a few quotes helps you get the fairest deal.
🟩 Check the Model: Ensure the model number is on the approved list. This is crucial. One digit off could mean zero rebate.
🟩 The Paperwork: You’ll sign a form (often digital) that assigns the “energy savings certificates” to the provider in exchange for the discount.
Final word
If you’re upgrading your air conditioning, the smartest move is sticking with high-efficiency split systems, well-zoned ducted units, or modern reverse-cycle systems. These are the models that qualify for NSW rebates and actually reduce power bills over time. With upfront discounts often covering 20–30% of installation costs, the savings start immediately and continue every time the system runs.
