Net Zero

Heat Pump Feasibility Grant

Heat Pump Feasibility Grant
Heat Pump Feasibility Grant helps eligible NSW businesses to assess whether a heat pump is a feasible option for their site. You can apply for up to $30,000 to cover 75% of the project costs.
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Key information

  • Status: Open
  • Grant amount: up to $30,000
  • Application opened: 14 July 2025
  • Application closes: 31 March 2026, 5:00 pm

Program objective

To drive the uptake of heat pumps, the Grant aims to: 

  • enable NSW businesses to make informed decisions on heat pump implementation
  • increase business productivity with high-efficiency heating, reduced exposure to rising fuel costs and lowered emissions
  • support the growth of industry capability
  • accelerate the uptake of the NSW Energy Security Safeguard.

This program is administered by The Department of Climate Change, Energy, the Environment and Water.

Eligibility

1

Who can apply

To be eligible for this Grant, you must meet all of the following criteria:  

  • have a current Australian Business Number (ABN) and be registered for goods and services tax (GST).
  • deliver your heat pump project at a NSW business site address.
  • use between 5,000 and 100,000 gigajoules (GJ) of gas (liquified natural gas, liquified petroleum gas, natural gas) per year at your business site, excluding fuel for transport. 
  • have identified a specialist consultant(s) to complete the Grant milestones.

For more information on the full eligibility and assessment criteria, please visit our website and read the funding guidelines.

2

Types of projects funded under this grant

The Heat Pump Feasibility Grant helps you assess if a heat pump is the right fit for your business site through a feasibility study.

Please refer to the funding guidelines for more details.

3

What costs you can apply for

Eligible costs include:

  • up to 75% of the cost of the services provided by the specialist consultant(s) responsible for delivering milestone activities
  • up to 50% of the cost of eligible metering hardware and software to address metering barriers identified.
4

Who can’t apply

You are not eligible for this Grant if you:

  • are a Commonwealth, state or local government entity
  • have already been approved for this Grant funding
  • have received or are going to receive funding from the NSW Government for the same activities.

Only one application can be submitted per business.

5

What costs you can't apply for

  • Costs incurred (paid for in full or through a deposit) before you were awarded the grant.
  • Internal project management and labour costs.
  • Costs associated with any capital expenditure, other than the eligible metering costs.

Most recent recipients

All recipients (13)

What your application needs to include

1

Prepare your application with this checklist

Before starting the application, please make sure you have read the funding guidelines. Then:

  • check whether your energy spend meets the eligibility threshold. If it does, have your energy bills ready for submission
  • identify a specialist consultant(s) to help complete the grant milestones. Ensure your chosen consultant(s) meets grant assessment criteria and have the supporting documentation ready to demonstrate how they meet the selection requirements.
2

Address the eligibility criteria

Each applicant, as part of an application response, must confirm that they meet the eligibility criteria.

Applicants that do not address the eligibility criteria in full may be excluded from the application process at the department's discretion.

3

Address the assessment criteria

You must address the below assessment criteria.

Alignment with the Grant objectives

The application demonstrates alignment with the Grant objectives and a commitment to electrification and decarbonisation.

Specialist consultant(s) competency and availability of contingency resources

You must nominate a specialist consultant(s) in your application and provide evidence of the nominated consultant(s)’ expertise (in the form of formal qualifications and/or implemented project examples) in all the required competency areas detailed in the funding guidelines.

Quality of application details

The information provided in your application is accurate, up-to-date, complete and legible.

Risks

The application does not raise any unacceptable reputational or delivery risks to the NSW Government, including any:

  • pending legal action
  • media controversy
  • lack of grantee financial capacity to cover the remaining costs to implement the Grant milestone activities.

Start the application

Click on the “Apply now” button to access the application form in the grants management system. Upload all the necessary documentation, answer all the questions and complete and submit the application form. Apply now because applications are assessed as they are received and will close on Tuesday 31 March at 5 pm (AEDT) or earlier, if funding is exhausted.

Note: If you are a new applicant to SmartyGrants, you will need to register and create a password. If you are already registered, you can log in with your existing username and password.


Apply now

After the application is submitted

Successful applications will be decided by: Program Manager

  • Applications will be assessed against the eligibility and assessment criteria outlined in the funding guidelines as they are received.
  • Independent technical and probity advisors may assist our assessment team in the assessment process.
  • We may request additional information as part of the assessment process. You will have 5 business days from the date of our written request to provide the requested information. If you do not respond by the due date, your application will not proceed.
  • You will receive an email notification within 20 business days of your application date confirming the outcome of your application. We reserve the right to extend this notification window if necessary and applicants will be notified accordingly.

Support and contact

For further information or clarification, please contact us at: energyefficiency.program@environment.nsw.gov.au

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