NSW Government seeks to enhance energy savings in hot water system upgrades
The NSW Office of Energy and Climate Change (OECC) has announced several proposed changes to the current Energy Savings Scheme (ESS) for hot water system upgrades. The changes are intended to improve energy savings in hot water system upgrades, ensure consumers have more stake and thus interest in their upgrade process, and align current ‘hypothetical’ energy savings calculations with real world results. Through this exercise, the government hopes to enhance customer engagement whilst also ensuring energy savings are more accurately calculated. Co-Payments: Increasing Customer Engagement Some upgrades under the ESS have required co-payments since 2014. These payments have helped make upgrades under the ESS more accessible to householders and businesses. However, the current $30 (ex GST) co-payment for residential hot water system upgrades and the lack of similar co-payments for small businesses and commercial upgrades have presented challenges. These include reduced customer engagement, perceived lack of legitimacy, and increased instances of high-pressure sales tactics. Efficient Energy Group (EEG) is an Accredited Certificate Provider (ACP) and the company’s CEO Joshua Liptak says the rationale behind co-payments is sound. “They’re there to encourage customer participation in their upgrade projects and help offset the cost of the upgrade. However, the problem for the OECC, and the government, is that when it’s set too low, customers may not be engaged enough to ensure they receive a quality product. Conversely, set the co-payment too high, and it may deter them from getting upgrades done at all. “The effectiveness of co-payments therefore depends on the right balance being struck between these 2 elements, and that’s what these proposed changes are trying to do.” He added, “The current co-payment also doesn’t adequately factor in the high value of the products being installed, which then risks sub par upgrades.” The New NSW ESS Hot Water System Upgrade Co-Payment […]