The NSW Government is offering businesses an opportunity to explore whether switching from gas to heat pump systems is a practical option for their site, with funding available to cover most of the costs involved in assessing feasibility. Applications are open now and will close at 5 pm on Monday, 13 October 2025, unless the $1 million funding pool is used up earlier.
Businesses that use between 5,000 and 100,000 gigajoules of gas annually at a site in NSW can apply for a grant of up to $30,000 to support the cost of working with a specialist consultant. The program is designed to help eligible applicants understand technical or site-based challenges before deciding whether to move forward with a heat pump system.
“Heat pumps are an effective solution to cut costs and decarbonise heating systems,” the NSW Government says. “Switching to heat pumps can benefit your businesses in many ways, including: lowering energy costs, avoiding volatile global energy prices, [and] reducing carbon emissions.”
The funding is divided into three stages:
Milestone 1 offers up to $5,000 (covering 75% of costs) for an initial site assessment. This helps identify whether there are any major barriers to installing a heat pump and explores ways to overcome them.
Milestone 2 involves refining the heat pump design to suit the site’s current energy use. While this step is essential, it doesn’t come with a grant payment.
Milestone 3 provides up to $25,000 (again at 75% of cost) to carry out a detailed feasibility study based on the refined design.
To be eligible, businesses must be GST-registered with an Australian Business Number and must not already be receiving state funding for the same activities. They also need to have selected a consultant to carry out the assessment work. Government entities at all levels are not eligible.
Applicants are assessed in the order submissions are received, and the program will close early if the total budget is committed before the deadline. Don’t miss this opportunity to identify potential barriers to heat pump implementation and assess possible solutions.
