What Is the NSW Air Conditioner Upgrade Incentive?

If your old air conditioner is costing you a fortune to run, or you’re thinking about upgrading to something more efficient, the NSW Government has money available to help. Through the Air Conditioner Upgrade Incentive, eligible NSW households and small businesses can access an upfront discount on the cost of installing a new energy-efficient air conditioner.

The discount is funded through the NSW Government’s Energy Savings Scheme and is applied directly to your quote, so you don’t wait for a rebate cheque. The savings come off the price before you pay.

Official Source

All details on this incentive are published directly by the NSW Government. You can read the full program details at energy.nsw.gov.au.

How Much Can You Save?

The discount amount depends on whether you’re installing a brand-new system or replacing an old one, and which model you choose. The more energy-efficient the unit, the larger the discount. Here are the indicative figures for a 6kW system:

$550
Installing a new 6kW air conditioner for the first time
$560
Replacing an old air conditioner with a 6kW split system
Important

These figures are indicative only. Your actual discount depends on the installer you choose, the model selected, your location, and installation complexity. Always get multiple quotes and confirm the discount is included.

Who Is Eligible?

Eligibility is broad. Both households and small businesses across NSW can apply. Here’s a quick breakdown:

Who Eligible? Notes
NSW homeowners YES All NSW residential properties
NSW renters / tenants CHECK Landlord approval may be required
NSW small businesses YES Must be located in NSW
Already have an efficient unit CHECK May not be eligible as incentive is based on energy savings
Outside NSW CHECK This is a NSW-only incentive

The best way to confirm your eligibility is to speak directly with a licensed installer who participates in the Energy Savings Scheme. They’ll assess your situation and confirm what discount you can access before any work begins.

Why Upgrade to an Energy-Efficient Air Conditioner?

Beyond the upfront discount, the long-term savings are real. An energy-efficient reverse-cycle air conditioner uses significantly less power to heat and cool your home compared to electric heaters or portable units.

  • Lower energy bills over the life of the system
  • One unit for both heating and cooling, no need for a separate heater
  • Better air quality with built-in filters that remove dust, allergens, and pollutants
  • Reduced emissions, helping NSW reach net zero by 2050
  • Lower maintenance costs with a newer, more reliable system

NSW’s target is to reduce emissions from cooling and heating by 70% by 2035. Every upgrade counts.

How to Claim the Incentive: Step by Step

The process is straightforward. Here’s exactly how it works, with links to the official NSW Government steps:

  1. 1

    Get Multiple Quotes from Participating Installers

    Not every installer participates in the Energy Savings Scheme. You need to specifically ask whether they offer this incentive and confirm the discount is included in their quote. Shop around to get the best deal for your situation.

    To find a qualified installer, you can use comparison websites like Energy Matters or check the IPART Accredited Certificate Providers list. You can also use a licensed tradesperson you already trust, providing they partner with an Accredited Certificate Provider (ACP).

    See the official guidance on finding an installer at energy.nsw.gov.au

  2. 2

    Choose Your Air Conditioner

    Not all models are eligible, and not all eligible models receive the same discount. A more energy-efficient unit delivers a higher discount and greater long-term savings. Discuss your options with your chosen installer, who can advise on which models qualify and which is best for your space.

    Read more about choosing an eligible model at energy.nsw.gov.au

  3. 3

    Complete the Required Paperwork

    Before installation begins, your installer will give you a nomination form to sign. This form is required to secure the discount and must be completed before the work starts. You cannot be reimbursed after the fact.

    You’ll also receive a detailed quote showing the discount applied and the final cost. You may be asked to provide documentation to confirm your eligibility.

    See what documentation is required at energy.nsw.gov.au

  4. 4

    Schedule and Complete the Installation

    Set a date with your installer. A licensed air conditioning or refrigeration technician will install your new system, walk you through how to use it, and safely dispose of or recycle your old unit if you’re replacing one.

    After installation, you’ll sign a Post Implementation Declaration confirming the work is done to standard. Your installer will photograph the completed installation as proof.

    See full installation requirements at energy.nsw.gov.au

Critical Reminder

The nomination form must be signed BEFORE installation starts. If you skip this step, you will not be eligible for the discount and cannot be reimbursed after the fact.

What Installers Offer This Incentive?

To participate in the Energy Savings Scheme, an installer must be partnered with an Accredited Certificate Provider (ACP). These are independent businesses accredited by IPART (the scheme administrator) to process the incentive.

You can find a full list of Accredited Certificate Providers on the IPART website. If your preferred installer isn’t already working with an ACP, they can partner with one to participate.

As a licensed Sydney air conditioning installer, Skycon Air can help you navigate the process and ensure your installation is completed by qualified professionals who know the requirements inside and out. Contact us to discuss your upgrade.

Frequently Asked Questions

When does this incentive close?
As of May 2026, the incentive has no current closing date. It is available now. However, government programs can change, so it’s worth acting sooner rather than later.
Is this a cash rebate or a discount?
It’s an upfront discount applied directly to your installation quote. You pay less from the start. There is no rebate form to file or wait for a cheque in the mail.
Can I use my own preferred installer?
Yes. If your preferred installer isn’t currently offering this incentive, they can partner with an Accredited Certificate Provider listed on the IPART website to make it happen.
What size air conditioner qualifies?
The indicative figures published by the NSW Government reference a 6kW split system. The actual eligibility and discount for other sizes depends on the model’s energy efficiency rating and your installer. Discuss your specific needs with multiple installers to confirm what’s available for your situation.
I already have an air conditioner. Can I still get the incentive?
If you already have an energy-efficient air conditioner, you may not qualify, as the incentive is calculated based on potential energy savings. If your existing unit is old or inefficient, speak to an installer who can assess whether an upgrade makes you eligible.
What if I have a problem after installation?
Contact your installer first. If you can’t resolve the issue with them, you can reach the Accredited Certificate Provider listed on your nomination form. For licensing complaints, contact Building Commission NSW. For disputes about contracted work, contact NSW Fair Trading.
Does this incentive apply outside NSW?
No. This is a NSW Government program under the NSW Energy Savings Scheme. If you’re based in another state, check with your state government for any similar programs available in your area.

Ready to Upgrade?
We’ll Handle the Rest.

Skycon Air installs energy-efficient split systems and ducted units across Sydney. We carry leading brands including Daikin, Mitsubishi Electric, Fujitsu, and Samsung, and our licensed technicians know exactly what’s required for a compliant, quality installation.

Get a Quote Today Or call us on 1300 264 424