Are taxpayers funding the HEER program?

Are taxpayers funding the HEER incentive?

How does the HEER method work? We’re often asked how and why the HEER method or program works – by Sydney residents. We thought we’d provide a helpful summary of just how the HEER method works in relation to the LED upgrades we complete and who is covering the cost of these incentivised energy-efficiency upgrades.

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If you’re in Victoria we have written a similar post on the VEU program (previously called VEET) and how that program works, here.

What is the HEER method for?

The HEER (Home energy efficiency retrofit) method is an incentive launched by the NSW government under the Energy Savings Scheme to encourage tenants and homeowners to undertake energy efficiency retrofits throughout their home to decrease their energy consumption by upgrading inefficient appliances to more modern, efficient ones. Like upgrading halogen downlights to LED.

By undertaking these upgrades the state can reduce its carbon emissions and help Australia reach its Paris Climate Agreement target.

Are taxpayers funding HEER?


We are often asked if we’re able to offer LEDs for free because the scheme is funded by taxpayers. Don’t worry, this is not the case. Incentives under the program are available because each upgrade, undertaken by an accredited partner generates energy efficiency certificates. These certificates are traded in a closed market, on your behalf and the savings are supplied to you directly. The buyers of the certificates are energy retailers who are obligated to purchase these certificates as a method of abating their carbon emissions. So, taxpayers are not footing the bill!


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