The Energy Savings Scheme method that funded commercial LED lighting upgrades at around 40,000 New South Wales business sites has closed, and the NSW government has acknowledged there is no simple replacement for larger premises.
Eligible small and medium-sized businesses can still access discounted LED upgrades through the scheme.
The Commercial Lighting Energy Savings Formula was discontinued from 1 April 2026 after operating for 14 years.
Its closure has particularly affected larger warehouses, industrial premises, apartment building car parks and other sites above the threshold, which no longer have an equivalent straightforward deemed pathway for lighting upgrades.
Around 34 per cent of upgrades under the closed method were at sites in regional New South Wales or outside Greater Sydney, underlining the reach of the program before it wound down.
In its August 2025 position paper, the NSW government found that the remaining measurement-based method will not drive lighting upgrades, given the complexity of these methods compared with deemed methods.
Lighting activities remain available through the Home Energy Efficiency Retrofits method for eligible businesses using less than 100 MWh of electricity a year.
This means many offices, shops, cafes, medical practices and other small and medium-sized commercial premises can still reduce the upfront cost of replacing older lighting with eligible LED products.
Businesses can check eligibility and how the upgrade process works through Efficient Energy Group’s NSW LED light replacement program guide, available on the company’s website.
The distinction matters because commercial lighting upgrades have historically been promoted broadly under the NSW Energy Savings Scheme, even though the pathway available now depends heavily on the size and energy consumption of the site.
Josh Liptak, Managing Director of Sydney-based Efficient Energy Group, said the change had left some businesses working from outdated information about what they qualify for.
“If someone quotes you scheme value on a commercial lighting job today, ask which method they are creating certificates under, and ask for it in writing,” he said, adding that a single question like that sorts out most of the confusion.
The discount available under the remaining method is not a fixed amount.
Its value depends on the number and type of fittings being replaced and on the certificate price at the time, so any advertisement quoting a set dollar figure is describing a particular offer rather than the scheme itself.
It also cannot be claimed after the fact.
Certificates must be created through the scheme framework by an accredited certificate provider, or by an installer working under one.
A business cannot engage any electrician, complete the work and then claim the value afterwards.
Unsolicited door knocking to market upgrades incentivised by the Energy Savings Scheme was banned from 12 September 2025.
The same change applies to the Peak Demand Reduction Scheme.
The closure applies to New South Wales only. High bay lighting upgrades remain available in South Australia under the Retailer Energy Productivity Scheme, and the Victorian Energy Upgrades program continues to support commercial lighting in Victoria.
