$30K Heat Pump Feasibility Grant for Commercial Gas Users in NSW

Many NSW businesses rely heavily on gas for heating, hot water, or process heat. With rising gas costs and decarbonisation pressures, it’s worth considering alternatives. 

One of the most promising is the commercial heat pump — an efficient technology that uses electricity to deliver heat instead of burning gas. (Read our full explainer on heat pumps here) 

To help businesses explore whether a heat pump is right for them, the NSW Government is offering the Heat Pump Feasibility Grant.

What the grant offers

• Up to $30,000 in funding to cover up to 75% of feasibility study costs. 

• Structured across three milestones: 

• Milestone 1: Up to $5,000 for an initial site screening. 

• Milestone 2: Development of a preliminary design (no direct funding). 

• Milestone 3: Up to $25,000 for a full, detailed feasibility study. 

• Total pool: $1 million, with applications assessed in order received. 

• Closing date: Friday, 24 November 2025 (or earlier if funds are exhausted).

Who is eligible?

To qualify, your business must: 

• Have an ABN and be GST registered. 

• Operate at a NSW site. 

• Use between 5,000 and 100,000 GJ of gas per year (natural gas, LPG, LNG). 

• Commit to working with a qualified consultant. 

Not eligible: government entities, businesses already funded for the same activity, or those who have previously received this grant.

Why consider applying?

The grant helps de-risk investment decisions by covering the upfront feasibility costs. Benefits of exploring heat pumps include: 

• Potentially lower energy costs thanks to high efficiency. 

• Reduced exposure to volatile gas prices. 

• Cutting emissions as the electricity grid becomes cleaner. 

• Future-proofing against carbon costs and regulatory changes.

Real-world example

At its Sydney plant, AstraZeneca used a heat pump feasibility study to identify opportunities for switching from gas. The result: 

• 46% reduction in natural gas use across site operations. 

• A strong business case to invest further in electrification.

Act now

Funding is limited and applications close November 24^th at COB. Early movers will be best placed to secure support.

At Leading Edge Energy, we help commercial and industrial users navigate grants, assess feasibility, and build business cases for energy transitions.

Talk to our energy experts today and find out how much your business could save.