The NSW Government is dangling a juicy carrot in front of businesses: a cool $1 million in grant funding to help explore if heat pumps are the future of their heating systems. And for many, the answer might be a resounding yes.
If your business is burning through thousands of gigajoules of gas every year, now might be the time to rethink how you heat things up—or cool them down.
Why Heat Pumps?
Heat pumps are gaining ground as an energy-efficient alternative to gas boilers. They’re not just greener—they’re downright impressive when it comes to efficiency. While a gas boiler typically hits around 90% efficiency, electric heat pumps can blow past 400%. That means serious savings on power bills and a dramatic cut to your carbon footprint.
They’re also incredibly versatile—used across everything from industrial heating to keeping your local pool nice and toasty, or even cranking up hot water for commercial laundries.
What’s the Deal with the Grant?
Enter the Heat Pump Feasibility Grant. This program offers up to $30,000 per project, covering 75% of the costs involved in figuring out whether switching to heat pumps is the right move for your business.
You’ll get access to specialist consultants who’ll:
- Identify any hurdles to installing a heat pump at your site
- Provide tailored heat pump design options
- Deliver a deep-dive feasibility study
All this helps businesses make smart, informed choices about their energy use.
The Grant is Broken Into Three Steps:
Milestone 1:
Up to $5,000 to identify if heat pumps are even a possibility at your site—what roadblocks exist, and how to deal with them.
Milestone 2:
Design phase—no funding here, but it’s the blueprint for what a heat pump setup would look like in your specific scenario.
Milestone 3:
Up to $25,000 for a detailed feasibility study to properly evaluate costs, savings, and logistics.
Is Your Business Eligible?
To apply, you’ll need to tick a few boxes:
- Be a registered business in NSW with an ABN and GST registration
- Use between 5,000 and 100,000 gigajoules of gas per year (excluding transport fuel)
- Have a business site in NSW
- Line up a specialist consultant ready to carry out the study
Certain organisations—like government entities or those already receiving similar funding—won’t qualify.
The Bigger Picture
This initiative sits within the broader $22 million NSW Business Decarbonisation Program, designed to help businesses chip away at their emissions and move toward a net zero future. It’s about giving businesses the practical tools to make energy upgrades that not only help the planet but also the bottom line.
Keen to Apply?
Applications are open now and will close at 5 pm (AEDT) on Monday, 13 October 2025—or earlier if the funding pot runs dry.
Start by reading the funding guidelines (PDF, 637KB), and then head to the official Heat Pump Feasibility Grants webpage to apply.
If your business has ever considered moving away from gas or you're simply fed up with unpredictable energy costs, this could be a great time to explore a cleaner, cheaper path forward.
Article information source: NSW Climate and Energy Action - Heat Pump Feasibility Grant
