How to create ESCs in NSW: a provider's walkthrough

Creating an ESC is a four-part job: get accredited, pick an activity, do the work with evidence in mind and lodge the claim. None of the parts is difficult on its own. What trips people up is the order, because the evidence for an ESC is largely gathered before and during the job, not after, and a gap cannot be filled in later.

This is a provider’s walkthrough for installers who want to create ESCs under the NSW Energy Savings Scheme. It covers each stage, the evidence you need per job, the changes that took effect in 2026 and the practical holdups. For what an ESC is and how it differs from a PRC or an STC, start with our ESC explainer. For the shorter version of the sales side, see how to sell ESCs.

Stage 1: Decide whether to be an ACP

Only an accredited certificate provider, or ACP, can create ESCs. You have two routes:

• Become an ACP. You apply to IPART for accreditation for the activities you will deliver. You carry the evidence, record-keeping and audit responsibility, and you keep the certificate value.
• Work under an ACP. You do the installation and assign the right to create certificates to an accredited provider, who handles registration and sale and passes on a share or a discount.

For a handful of jobs a year, working under an ACP is usually the better route. For a steady volume of NSW work, accreditation pays. Our answer on becoming an ACP in NSW covers the application and the ACP overview explains the role.

Stage 2: Choose the activity

ESCs are created for approved activities, each with a defined method that sets what qualifies, how the savings are calculated and what evidence is needed. Residential and small business installers typically work with activities for efficient hot water, appliances and commercial equipment. The scheme’s published changes describe heat pump water heater activities identified as F16 and F17, with a minimum five-year warranty requirement for most systems from 1 December 2025, a cap on certificates per system and a reduced confidence factor for larger commercial heat pumps until the end of 2026. Treat those details as pointers, and read the current activity definition on the scheme’s website, because rules changed again when new ESS and PDRS rules commenced on 1 July 2026.

Before you quote, check four things in the activity definition:

1. The product is on the required list or meets the stated specification.
2. The existing equipment being replaced meets the replacement conditions.
3. The installer qualifications and any supervision rules.
4. The evidence and customer consent required.

Stage 3: Do the job with evidence in mind

Evidence for an ESC claim varies by activity, but a typical set includes:

• Customer consent and the assignment of the right to create certificates.
• Details of the product installed: make, model, serial number and specification.
• Photos of the old equipment before removal, the new equipment and the installation.
• Invoices and proof of the work done and the date.
• Records of who did the work and their licence details.
• Any calculations or declarations required by the method.

Photograph as you go. You cannot recreate the “before” picture once the old unit is gone. The hot water and heat pump checklist lists the equivalent for STCs, and many of the shots overlap.

Stage 4: Lodge and register

The ACP lodges the activity details, evidence and calculation in the scheme registry. IPART reviews, and if the claim is valid, registers the ESCs. Where the checks find a problem, the claim is queried and you correct it. Registered ESCs can then be transferred to a buyer.

A worked flow for one job, using placeholder numbers:

We leave the numbers as placeholders because the method and the market change. The point is that the count comes from the activity’s calculation, and the price comes from the market. See ESC pricing in NSW.

Stage 5: Sell and get paid

Once registered, sell the ESCs to a trader or a retailer. Agree the price, volume, settlement date and fees in writing and compare quotes. Payment timing varies with registration and the buyer’s terms. See NSW ESC payment time.

Practical holdups

• Evidence gaps. Missing “before” photos or serial numbers are the common cause of a queried claim.
• Product not on the list. Check before you quote, not after you install.
• Consent paperwork. The customer’s consent must be complete and consistent with the claim.
• Method changes. Confidence factors and caps can change on a set date, which affects your price per job.
• Cash flow. ESC income arrives after registration and sale. Plan the working capital. See how to improve cash flow as a solar installer for the principles, which apply here too.

Budgeting your first year

Think in terms of fixed and variable costs: accreditation and administration fees as set by the regulator, staff time on evidence and registry work, software and photo tools, and any share you pay to an ACP or trader. Check the scheme’s current fee schedule, since we do not state fees here. Then estimate how many jobs you need before the certificates cover the overhead.

Where STCs and ESCs meet

NSW installers often run both. A heat pump may earn STCs under the federal scheme and ESCs under the state scheme, and the same photos support both. STCs settle through traders on a published rate, and the hot water STCs page explains that side. Pricing shows today’s STC rate, and the switch page is there if your STC settlement is slower than you want.

What to do next

1. Decide between becoming an ACP and working under one.
2. Read the current activity definition for the product you install most.
3. Build a single evidence checklist that satisfies both ESC and STC rules.
4. Agree the sale and settlement terms for ESCs in writing.
5. Read what an ESC is and the NSW heat pump rebate guide to see how the discount appears to the customer.