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How the Government Subsidises LED Lighting

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By now we should know some of the valid reasons for switching to LED lighting. They’re safer (cool to touch), environmentally friendly, more energy efficient… but did you know there are government subsidies in place to encourage you financially to make the change to LED? Rebates exist on  LED lighting, as incentives to help you decide. If you own a building (not a home) and are interested, read on.

Government subsidies on offer for LED lighting

In New South Wales there is an energy incentives scheme designed to encourage people to reduce their use of electricity (by investing in energy saving products, investors receive financial incentives). As usual with anything to do with the government, it’s long-winded and convoluted; however we’ve tried to make it as easy to understand as possible.

Accredited Certificate Providers (ACPs) bring in energy saving activities, proving that they’re capable of producing Energy Savings Certificates (ESCs). Those participating in the scheme can purchase these certificates (these participants include electricity retailers and those licenced to buy and supply electricity in NSW).

Certificates are $5-10 each, and entitle the purchaser to rebates. Who can purchase the certificates? Any one of the following:

  • Industrial facilities
  • Commercial facilities (office buildings, hotels, motels, aged care facilities, shopping centres)
  • Public facilities (pools, administration and community centres)
  • Residential strata.

Also, as usual with government schemes, you can’t do it yourself – to purchase an ESC you need to go through an agent, or have the project co-ordinator do it on your behalf. You need to pay the agent and you need to pay a fee to the provider of the ESC (the ACP). ECPs vary in prices according to supply and demand.

In a nutshell, though, this is the cycle: businesses invest in technology that will assist them to reduce their electricity usage. By reducing their electricity requirements, they generate ESCs (ACPs generate the ESCs). Electricity retailers (mandatory scheme participants) purchase these certificates (required by law). The money generated by the selling of these ESCs are returned to the business.

By purchasing certain LED lights, you are entitled to take part in the scheme. Schemes run in other states, too, and we’re almost certain they’re just as confusing. Our advice is to contact the relevant authorities and have them explain it to you. If there’s a way of getting money for being energy efficient and more environmentally friendly, we suggest you go for it!


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