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High efficiency commercial appliances

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22 May 2018
Is the high efficiency commercial appliances method suitable for your business?
  • Are you looking to install new air conditioners, close control air conditioners, refrigerated display cabinets or liquid-chilling packages to service commercial or industrial buildings or common areas in residential buildings?

If you answered yes to this question, the high efficiency commercial appliances method may be suitable for your business. Read on for eligibility and compliance details.

The high efficiency commercial appliances method sets out the rules for projects that reduce emissions by improving the efficiency of air conditioners, close control air conditioners, refrigerated display cabinets and liquid–chilling packages in commercial or industrial buildings or common areas in residential buildings.

In using this method, you can replace existing equipment, supplement existing equipment or install equipment where there was none previously. Abatement for each installed appliance is credited by calculating the difference between the electricity used by an average similar appliance with that used by newly installed high efficiency appliance.

The method is based on similar methods used by the New South Wales Energy Savings Scheme (Business Appliances method) and the Victorian Energy Efficiency Target scheme. However, there are some differences due to overall scheme design and coverage.

Method variations

Section 114 of the Carbon Credits (Carbon Farming Ini​tiative) Act 2011 (the Act)​ ​allows for methods to be revised and varied. This is to ensure methods continue to operate as originally intended. Variations to methods are developed and drafted by the Department of the Environment and Energy. Information on draft methods and method variations is available on the Department of the Environment and Energy’s website.

The Clean Energy Regulator recommends making yourself familiar with proposed method variations relevant to your project should they arise, and how any changes between the original method and the varied method may affect your project plan.

Legislative requirements

You must read and understand the method and other legislative req​uirements to conduct a high efficiency commercial appliances project and earn Australian Carbon Credit Units (ACCUs). This includes:

Tools and Resources​

Department of Environment information on the high efficiency commercial appliances method

High efficiency commercial appliances – method application guidance​

Quick reference guide to the high efficiency commercial appliances method

Contents

Crediting period

Seven years – the crediting period is the period of time a project undertakes activities which generate eligible abatement.

Relevant section of the Act:

Eligibility requirements

​General eligibility requirements of the Act which include:

In addition, the method requires that the installed equipment unit be:

  • new
  • a model of air conditioner, close control air conditioner, refrigerated display cabinet or liquid–chilling package that is registered on the GEMS Register
  • a high efficiency unit with an efficiency rating that is better than the thresholds set in the “efficiency factor document”, and
  • installed in a commercial or industrial building or in the common area in a residential building.

Relevant section of the Act:

Relevant sections of the Method:

How is abatement calculated?

In simple terms, the Method credits projects for the improved efficiency of the new equipment units compared to a baseline efficiency level. The baseline efficiency level is calculated using the average of similar units listed on the GEMS register.

Each of the four technology types use a slightly different calculation with different deemed factors to account for different equipment usage. For example, the calculation for air–conditioners allows for different usage factors depending on the NCC climate zone.

Relevant section of the Method:

Notification requirements

The Method requires project proponents notify the Clean Energy Regulator of the following:

  • Any safety issues that have been identified with an installed equipment unit as soon as practicable.
  • If certain conditions are met, any product performance issue that has been identified with an installed equipment unit.

Relevant section of the Method:

Record keeping requirements

In addition to the general record keeping requirements of the Act and the Rules, the Method sets out the information that must be kept and includes the date the each equipment unit was commissioned.

Relevant section of the Act:

Relevant section of the Rule:

Relevant section of the Method:

Reporting requirements

In addition to the general reporting requirements of the Act and the Rule, the Method sets out some method specific requirements for offset reports including:

  • Reports must identify each installed equipment unit including information regarding location, specifications and class.
  • Reports must include additional information if equipment units that were included in previous reports are then excluded from the current report.

Relevant section of the Act

Relevant section of the Method:

Audits

All projects receive an audit schedule and must provide audit reports according to this schedule. A minimum of three audits will be scheduled and additional audits may be triggered. For more information on the audit requirements, see the Act, the Rule and the audit information on our website.

Relevant section of the Act:

Relevant section of the Rule:

Specialist skills will be required to carry out the project with the Method including an electrician or qualified refrigeration mechanic. Other examples of specialist skills include:

  • Registered professional engineer (PE)
  • Certified Energy Manager (CEM)
  • Certified Measurement and Verification Professional (CMVP)
  • ​Verified experience in energy or facility management, or measurement and verification

Relevant section of the Rule:

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