NSW Govt supports business to use energy-saving heat pumps


Monday, 14 July, 2025

NSW Govt supports business to use energy-saving heat pumps

The NSW Government’s new $1 million grants program is designed to assist businesses to investigate the feasibility of switching to energy-efficient heat pump technology.

The Heat Pump Feasibility Grants provide up to $30,000 to cover 75% of project costs to support heat pump feasibility studies. 

Specialist consultants will assess the potential for heat pumps to provide a practical and cost-effective solution, and provide expert guidance. This includes:

  • initial screening to identify barriers to heat pump installation at the site;
  • heat pump design options informed by energy data; and
  • a detailed feasibility study to assess if a heat pump is the right fit for the site.
     

Heat pumps could be suitable for a variety of sectors and applications, from generating industrial process heat to providing commercial space heating, recreational pool heating and laundry hot water.

Switching to energy-efficient alternatives like heat pumps can help businesses lower energy costs, reduce exposure to volatile fossil fuel prices and cut carbon emissions.

“These grants are a fantastic opportunity for businesses to take a serious look at how energy-efficient heat pumps can improve their operations,” said Rana Juppin, Director of the NSW Department of Climate Change, Energy, the Environment and Water. 

“By providing funding for feasibility studies, we’re empowering businesses to make smarter, more informed decisions that benefit both their bottom line and the environment.” 

The funding is open to businesses in NSW that use between 5000 and 10,000 gigajoules (GJ) of gas per site annually and meet other eligibility criteria.

To find out more, click here.

Image credit: iStock.com/LukaTDB

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