Businesses in New South Wales have until 5 pm on Monday, 13 October 2025, to apply for funding through the Heat Pump Feasibility Grant program, or sooner if the $1 million allocation is taken up.
The program offers up to $30,000 per site, covering 75 percent of costs, for feasibility studies carried out by specialist consultants. Applications are assessed as they arrive, so funding could be allocated before the official deadline.
The studies are designed to give businesses a clear picture of whether heat pumps are a suitable and cost-effective replacement for gas boilers or other heating systems. Typical work includes a site screening to check barriers to installation, design options based on energy data, and a full feasibility assessment.
Electric heat pumps are already used in industries ranging from laundries and commercial buildings to food processing and recreation centres. Compared with gas boilers, which operate at around 90 per cent efficiency, heat pumps can exceed 400 per cent efficiency, cutting both energy use and emissions.
The grants are open to businesses in NSW that use between 5,000 and 100,000 gigajoules of gas per year at a single site and meet other eligibility requirements.
“These grants are a fantastic opportunity for businesses to take a serious look at how energy-efficient heat pumps can improve their operations,” Rana Juppin, Director at the Department of Climate Change, Energy, the Environment and Water said at the lunch of the program in July.
“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 Heat Pump Feasibility Grants are part of the NSW Government’s $22 million Business Decarbonisation Program, which also supports other practical projects to help reduce energy costs and emissions.
