NSW Heat Pump Feasibility Grant

Status checked 21 October 2026: The NSW Government says this grant is closed. Applications closed at 5 pm AEST on 30 April 2026. The funding terms below describe the former round, not a current opportunity. Check the NSW Government program page for status and any future announcement.

What the grant supported

The grant helped eligible NSW industrial and commercial businesses assess whether heat pumps could meet site heating needs. It offered up to $30,000, covering up to 75% of approved feasibility costs. The former guidelines described three linked stages: up to $5,000 for an initial heat-pump screening; design options using site process data, with no separate payment at stage two; and up to $25,000 for a detailed feasibility study.

Screening considered heat demand, temperature, metering data, electricity capacity, available space and operational constraints. A detailed study could then examine equipment options, integration, energy and emissions impacts, costs and implementation risks. The former program required the work and any claim for payment to follow its funding deed and guidelines; a feasibility forecast was not a verified operating saving.

Assessing a heat-pump opportunity now

A useful project assessment identifies where heat is used, at what temperature and duty cycle, and whether heat recovery or process changes can reduce demand. Collect gas and electricity records, process and production data, equipment schedules, tariffs and available metering. Compare design alternatives on consistent assumptions, including capital cost, operating cost, grid capacity and emissions factors.

Northmore Gordon can support energy audits, heat-pump feasibility, measurement planning and an investment case. These services can help a business decide whether to proceed or seek a future grant, but they do not reopen the closed 2026 round.

What was the NSW Heat Pump Feasibility Grant?

The closed NSW grant offered eligible businesses up to $30,000, covering up to 75% of approved costs, to assess industrial or commercial heat-pump feasibility. The NSW Government says applications closed at 5 pm AEST on 30 April 2026.

What were the three project stages?

The former guidelines described an initial screening (up to $5,000), heat-pump design options based on site process data (no separate stage-two payment), and a detailed feasibility study (up to $25,000). Funding and delivery depended on the former deed and guidelines.

Why did the grant use staged feasibility work?

Screening could identify data, electrical, temperature or space barriers before a detailed design. The design stage then informed a more complete technical and economic study. A business can use the same staged logic for an independent investment decision even though the grant round is closed.

What baseline information helps assess a heat-pump project?

Gather gas and electricity bills, interval or process data, heat-load profiles, supply and return temperatures, production schedules, tariffs, equipment condition, electrical capacity and site constraints. Record assumptions and data gaps so forecast savings can be reviewed.

How did the grant relate to metering?

Metering and data quality were relevant to credible screening and feasibility results. A project team should identify which heat, electricity and operating variables need measurement; the former funding guidelines and deed governed any eligible metering costs.

What if a site did not meet the former gas-use threshold?

It would not meet that former round's published energy-use test unless another provision applied. The 2026 application window is closed, and a business should check the specific eligibility rules of any future program rather than relying on an old threshold.

Should a business treat a grant as secured in a heat-pump investment case?

No. Present the project with and without conditional public funding. The former NSW grant is closed; any future grant would require its own eligibility decision, approval and funding deed before it could be treated as committed support.

How should forecast savings be distinguished from verified results?

A feasibility study models energy, cost and emissions outcomes under stated assumptions. Verified operating savings require a defined baseline, measurement boundary, post-implementation data and adjustment for changes such as output, weather or operating hours.

How can Northmore Gordon help after the grant closed?

Northmore Gordon can assess heat demand, develop design options, model project economics and emissions, and plan measurement and verification. That work can support a future business decision or funding application; it does not reopen this closed round.

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