About the Air conditioner upgrade incentive
The discount comes from the NSW Government's Energy Savings Scheme, which pays accredited businesses for the energy their upgrades save. The installer passes part of that value to you as a discount on the quote.
The NSW Government gives indicative amounts of up to $550 for a new 6 kW system and up to $560 for replacing an old air conditioner with a 6 kW split system. The real discount depends on the installer, model, location and their margin, so compare quotes.
Reverse-cycle air conditioners are usually the cheapest way to heat a home with electricity as well as cool it. See our guides to the cheapest ways to heat and cool a home.
Who can get it
- All NSW households and small businesses may be eligible.
- You are installing a new energy-efficient air conditioner or replacing an old one with a more efficient model.
- You may not qualify if you already have an efficient air conditioner, because the discount is based on the energy you will save.
How to apply
- Find installers offering the Energy Savings Scheme discount for air conditioners.
- Ask each for a quote showing the discount applied. Compare several, because discounts vary.
- Pay the remaining amount. You must make a minimum payment towards the cost.
How it is paid: As an upfront discount on your installer's quote.
Contact: NSW Climate and Energy Action, air conditioner upgrade. Official information.
Moving or switching retailer?
Concessions applied by your retailer do not always move with you. When you move house or switch, give your card details to the new retailer and check the next bill. See how to claim a concession.
Other energy help in New South Wales
- Low Income Household Rebate: Up to $285 a year ($313.50 in embedded networks).
- Family Energy Rebate: Up to $180 a year ($198 in embedded networks).
- Seniors Energy Rebate: $200 a year.
- Medical Energy Rebate: Up to $285 a year ($313.50 in embedded networks).
- Life Support Rebate: Depends on equipment, up to $1,343.20 a year.
- Energy Accounts Payment Assistance (EAPA): $50 vouchers towards an unpaid bill.
- NSW Gas Rebate: Up to $110 a year ($121 in embedded networks).
- Home Energy Saver: Discount up to $4,000 or zero-interest loan up to $15,000.
- Hot water upgrade incentive: Up to about $640 off a heat pump.
See every program on our New South Wales rebates page.
Common questions
The NSW Government gives indicative discounts of up to $550 for a new 6 kW system and up to $560 to replace an old air conditioner with a 6 kW split system. Actual discounts vary by installer.
No. All NSW households and small businesses may be eligible, depending on the energy savings of the upgrade.
No. It is taken off the installer's quote upfront, so you pay the reduced price.
Sources
Every rate on this page comes from the regulator or the regulated retailer. Last checked October 2026. Prices include GST unless we say otherwise.