By 2030 Australia has committed to reducing its carbon emissions by 65%. To this end, electricity retailers have mandatory emission reduction targets to meet. If electricity retailers cannot meet the targets naturally and through their own operational changes, one of their options is to purchase Energy Saving Certificates (ESCs) to offset their emissions. ESCs are the tradable currency of the Energy Savings Scheme (ESS) which creates financial incentives for organisations to invest in energy efficiency technologies.
The Independent Pricing And Regulatory Tribunal (IPART) administers and regulates the Energy Savings Scheme. They are the government body who assess applicants to become Accredited Certificate Providers (ACP). ACPs can create ESCs based on the energy savings, provided the saving is a Recognised Energy Saving Activity (RESA). The ACP must also be compliant with the rules and regulations of the ESS.
An ESC is a representation of carbon emission reduced by the implementation of energy efficient technologies and decommission of old technology. Each ESC represents one notional megawatt hour of energy abated. The ACP can reduce the cost of the technology to the end user in exchange for the ESCs created in the upgrade. The ACP will then, provided that the technology upgrade is compliant with the ESS rules and regulations, exchange the certificate to recover the cost of the upgrade. The Green Guys Group is an accredited certificate provider.
To put it simply, the ESS creates opportunities for businesses in NSW to access energy efficient technologies at an affordable price. If you are an eligible business, you can receive a lighting upgrade at a greatly reduced cost in exchange for the ESCs. You receive a low cost upgrade and benefit from the energy savings for all future electricity costs.
Can I receive a Free upgrade? At present, businesses in NSW can only receive upgrades at a reduced cost, this cost is quickly recovered through the savings in electricity.
Currently there are not any provisions for New South Wales residents to receive ESCs.
The Green Guys Group is working closely with the relevant parties to create provisions for residential properties. If you are interested in upgrading, please fill out the following contact form. We will contact you if a residential option becomes available.
To create value from ESCs you need to be an ACP and ensure that the upgrades are compliant with the ESS. You also need to create a high volume of certificates to sell to energy retailers. Because of this there is little to no value for individual ESCs per business, except to receive a highly subsidised upgrade, and ongoing savings from the energy efficient technology.