Attention all businesses in NSW! There are upcoming changes in the pipeline to the Energy Savings Scheme (ESS) which will affect the subsidy you will receive following an LED lighting upgrade. These changes will significantly decrease the ESS subsidy you will receive for certain industry types, meaning the cost of the upgrade will be more and your payback period will be longer.
NSW-based businesses currently receive an ESS subsidy of between 30 to 50% of the price of an LED lighting upgrade. Changes relating to the Commercial Lighting Energy Savings Formula will be recalculated later this year and have the following effect on the subsidy you will receive:
To put this into context, a business that runs a storage warehouse looking to upgrade today may receive a subsidy of $50,000 towards a $100,000 job. Following the recalculations, they will miss out on a discount of $13,500 which will need to be capitalised by the business itself. The changes are significant!
The new rules come into effect from 1 November 2018. However, to ensure you get today’s higher subsidy, your installation needs to have been completed and the necessary paperwork submitted before this date. It is therefore imperative that you commit to an LED lighting upgrade with Shine On before the end of August and the recalculations will not affect you.