NSW Home Energy Saver Program: $15,000 Interest-Free Loans for Energy Upgrades

Why the program matters: Australian homes are freezing — and expensive to heat

Australian homes have a reputation worldwide for being poorly built and cold in winter. Every year, new arrivals from Europe and North America take to social media to complain that it's warmer outside than inside. The problem isn't just comfort — it's cost. Running inefficient heaters to compensate for leaking building shells pushes energy bills higher, especially during the cost-of-living crisis.

The NSW Home Energy Saver Program is designed to change that by giving households access to the technology and upgrades that make homes more comfortable, efficient and cheaper to run. The $557 million package is part of the NSW Labor Government's broader cost-of-living relief, focused on practical help that lowers power bills over the long term rather than one-off rebates.

Premier Chris Minns said the program was about helping families access technology to lower power bills and make homes more comfortable. Environment Minister Penny Sharpe added that many residents had felt energy-saving upgrades were unaffordable, and the program was designed to give more families a fair opportunity to access improvements that make homes "more comfortable, more efficient and better to live in."

Who is eligible for the $15,000 loan?

The program is open to NSW households with a combined annual income of up to $210,000. Both apartments and houses are eligible. The broad income threshold means the program is aimed at middle- and low-income households, including many who would otherwise struggle to afford the upfront cost of energy upgrades.

Later in 2026, additional support will be available for:

• • Households with a combined annual income of $80,000 or less
• • Concession card holders

These households will be able to apply for $4,000 discounts on their loans, further reducing the cost of upgrades. Up to 32,000 homes are expected to benefit across the state.

What can you buy with the loan?

The $15,000 loan can be used for a wide range of energy-saving and weatherproofing upgrades. Households can choose the combination that best suits their home and priorities. Eligible products include:

How the loan works: 10 years, zero interest

The $15,000 loan is a zero-interest loan repaid over up to 10 years. That means a household borrowing the full amount would repay roughly $1,500 per year, or about $29 per week, with no interest charges. For households currently paying hundreds of dollars extra on heating and cooling each quarter, the loan can pay for itself through reduced bills.

The $4,000 discount for eligible low-income households and concession card holders will be available later in 2026, reducing the amount that needs to be repaid. Combined with existing federal and state rebates — such as the Small-scale Renewable Energy Scheme (SRES) for solar and hot water heat pump incentives — the out-of-pocket cost for many upgrades can be significantly reduced.

For a full picture of available assistance, see our government rebates guide and green loans comparison.

How to apply and what to do first

Applications open from 17 June 2026 through the NSW Government's official Home Energy Saver Program portal. Before applying, households should:

1. Check eligibility — confirm your household income and concession status.
2. Identify your biggest problem — a cold home in winter usually points to insulation, draughts or inefficient heating. High summer bills often mean poor glazing or lack of shading.
3. Get a home energy assessment — a home energy audit or NatHERS Existing Homes Assessment can pinpoint the upgrades with the best payback.
4. Compare quotes — use approved suppliers and get multiple quotes for solar, insulation, heat pumps and other upgrades.
5. Apply for the loan — submit through the official NSW portal and use the funds for eligible products and installation.

For households unsure where to start, our energy rating calculator and energy efficiency consultant guide can help you understand your options and connect with professionals who can advise on the right upgrades.

How much could you save?

The savings depend on the upgrades chosen and the starting condition of the home, but the evidence is strong:

• • Draught-proofing: CSIRO testing found proper sealing can reduce energy bills by around 20%.
• • Ceiling insulation top-up: Can reduce winter heat loss by 25–35% and typically pays back in 3–5 years.
• • Heat pump hot water: Uses 60–75% less energy than conventional electric or gas storage systems.
• • Reverse-cycle heating: Delivers 300–600% efficiency, meaning every 1 kWh of electricity produces 3–6 kWh of heat.
• • Solar + battery: Can reduce grid electricity bills by 50–90% depending on system size and usage.

For a personalised estimate, use our savings calculator to see how much you could save by improving your home's energy efficiency.

How this fits with electrification and all-electric homes

The Home Energy Saver Program is a practical step toward the broader electrification of Australian homes. By funding induction cooktops, reverse-cycle air conditioning, heat pump hot water, solar and batteries, the program helps households move away from gas and towards efficient electric systems powered increasingly by renewable energy.

Electrification is not just about replacing gas appliances. It works best when paired with a well-sealed and insulated building shell. A home with good insulation, draught-proofing and efficient glazing needs less heating and cooling in the first place, which means smaller, cheaper heat pumps and solar systems can deliver the same comfort.

For households considering the switch, our guides on all-electric homes, electrifying your home and getting off gas explain the full transition pathway.