The NSW Energy Savings Scheme has been running since 2009, but the 2025 updates bring some of the biggest changes we’ve seen in years. I’ve been helping commercial clients navigate these rebates for over a decade, and this year’s adjustments are worth paying attention to.

Let me break down what’s actually different and how it affects your bottom line.

The Key Changes for LED Lighting

First, the good news. The baseline wattages for calculating energy savings have been updated to reflect current market conditions. This means if you’re replacing older T8 fluorescents or inefficient HID fixtures, your Energy Savings Certificates (ESCs) are calculated against more realistic baselines.

Here’s the catch though. The certificate price has been fluctuating, and projections for 2025 suggest we might see some volatility. At the time of writing, ESC spot prices are hovering around $35-38, which is decent but not the highs we saw a couple of years back.

For a typical warehouse retrofit, this means:

• Replacing 100 x 400W metal halide highbays with 150W LEDs
• Generating roughly 800-1000 ESCs over the lifetime
• Current value: approximately $28,000-$38,000 in rebates

That’s still substantial. But you need to factor in that processing times have increased. What used to take 4-6 weeks for certificate creation is now stretching to 8-10 weeks in some cases.

The Documentation Requirements Have Tightened

This is where I’ve seen projects fall over lately. The Scheme Administrator is being much stricter about:

Pre-installation evidence: You need clear photos of existing fixtures with serial numbers visible where possible. Date stamps matter. I’ve had clients lose thousands in potential rebates because their “before” photos weren’t adequate.

Compliance certificates: Every LED fixture needs to meet AS/NZS 60598.1 and relevant parts of AS/NZS 62031. Your supplier should provide these, but check them yourself. I’ve seen non-compliant products slip through, and that’s a rejection waiting to happen.

Installation verification: Licensed electricians only. The Certificate of Compliance (CCEW) must match the installation address exactly. Sounds obvious, but I’ve seen typos cost people time and money.

Practical Advice From the Field

After 18 years in commercial lighting, here’s what I tell every client:

Don’t wait for certificate prices to rise. I’ve watched people delay projects for months hoping the ESC price would climb, only to see their existing fixtures fail anyway. The energy savings start the day you switch on the new LEDs. That’s guaranteed money in your pocket regardless of certificate prices.

Bundle your sites if possible. If you’re managing multiple facilities, consolidating them into a single project can reduce administrative overhead significantly. The per-fixture costs for processing drop when you’re dealing with larger quantities.

Consider timing around financial years. Many facilities have capital works budgets that reset in July. Planning your retrofit to align with budget cycles means you’re not scrambling for approval when there’s no money left in the pot.

What’s Actually Worth Retrofitting in 2025?

Not every lighting upgrade makes financial sense. Here’s my honest assessment:

Strong ROI (do it now):

• Metal halide to LED highbay conversions in warehouses
• T8 fluorescent to LED panel conversions in offices
• External security lighting upgrades
• Car park lighting retrofits

Moderate ROI (worth considering):

• T5 fluorescent to LED (savings are smaller since T5s were already efficient)
• Decorative lighting in retail (depends heavily on operating hours)

Weak ROI (think twice):

• Recently installed LED fixtures to newer LED fixtures
• Low-usage areas like storage rooms that are rarely occupied

The maths changes if you’re already planning maintenance work. Replacing ballasts in aging fluorescent fixtures? You’re probably better off just going LED at that point.

Working With Accredited Certificate Providers

You’ve got options here. Some electricians work with ACPs directly, while others prefer to leave that side to the client or a project manager.

My recommendation: find an ACP who’s responsive and knows commercial lighting specifically. Some providers are geared more towards residential solar and heat pumps. They’ll still process your lighting certificates, but they might not understand the nuances of commercial installations.

Questions to ask your ACP:

• How many commercial LED projects have you processed this year?
• What’s your current average processing time?
• Do you handle the Scheme Administrator queries, or does that come back to me?
• What documentation do you need from the electrician?

The Bigger Picture

NSW isn’t the only state with these schemes. Victoria’s VEECs work similarly, and if you’re operating across state borders, it’s worth understanding both programs. The requirements differ in some details, but the core principle is the same: prove you’ve made a legitimate energy efficiency improvement, and you’ll receive tradeable certificates.

For those of you managing commercial properties, the 2025 changes shouldn’t scare you off. If anything, the updated baselines mean genuine upgrades are being valued more fairly. The extra documentation requirements just mean being more organised upfront.

I’ll be covering the Victorian VEEC changes in a follow-up post. And if you’re dealing with a particularly complex multi-site project, sometimes it’s worth bringing in specialists who focus on smart lighting controls and building automation. The rebate calculations get more interesting when you’re adding occupancy sensors and daylight harvesting into the mix.

But for most straightforward LED retrofits? The 2025 ESS is still one of the best incentives going. Just make sure your paperwork is tight.