Evaluation of impacts on the high efficiency lighting market

The NSW market for high efficiency lighting was transformed through the Energy Savings Scheme (ESS) – offering lessons for policy design to facilitate the transformation of other markets for the net zero transition. Common Capital – on behalf of the Office of Environment and Heritage – conducted an impact evaluation of the lighting market to understand the root causes and barriers to uptake of this technology.

Key takeaways

  • The ESS has driven over 3.7 million energy-saving lighting upgrades at more than 10,000 NSW businesses since 2011, generating a net economic benefit of $671 million for NSW.
  • The ESS accelerated the adoption of efficient lighting technologies by bringing them to NSW 2-3 years earlier than they would have otherwise, leading to spillover benefits and reduced energy bills for businesses.
  • The ESS helped improve the quality and drive down the cost of LEDs in Australia through new product standards, market competition, and innovation, with ESS/Victorian Energy Efficiency Target (VEET) standards becoming a de facto quality benchmark.
  • There is an opportunity to re-focus the ESS on new areas that still require support to achieve complete market transformation. Doing so will require further research, analysis consultation and possibly removing support for lighting activities under the ESS.