South Australia has its own energy efficiency scheme—the Retailer Energy Efficiency Scheme (REES). It’s similar in concept to NSW’s ESS and Victoria’s VEET, but with important differences.

If you’re managing commercial property in Adelaide or regional SA, here’s what you need to know.

How REES Works

REES imposes energy efficiency targets on energy retailers operating in South Australia. To meet these targets, retailers fund energy efficiency activities—including commercial LED upgrades.

Unlike ESS and VEET where tradeable certificates are created, REES activities generate “energy efficiency units” that count toward retailer obligations. The practical effect for you as a client is similar: rebates on eligible projects.

Who Delivers REES Activities?

REES activities are typically delivered through:

• Energy retailers directly (some run their own programs)
• Approved delivery agents (contractors authorised to deliver activities)

You’ll work with a delivery partner who handles the administration and claims the activity with the Essential Services Commission of South Australia (ESCOSA).

What Qualifies for Commercial Lighting?

Commercial LED retrofits are eligible under REES lighting activities. The specifics include:

Eligible upgrades:

• HID (metal halide, high-pressure sodium) to LED
• Fluorescent to LED
• Halogen to LED

Requirements:

• Products must meet Australian standards
• Installation by licensed electrical contractor
• Proper documentation and evidence

The technical requirements are broadly similar to NSW and Victoria, but the specific activity definitions and deemed savings calculations differ. Your delivery partner will know the current requirements.

The Financial Picture

REES rebates can be substantial but are generally structured differently than ESC/VEEC certificate payments.

Common REES approaches:

• Fixed rebate per fitting replaced
• Percentage of project cost covered
• Free product + subsidised installation

The exact offer depends on the delivery partner and current scheme parameters. Get quotes from multiple providers to compare.

For a typical commercial project:

• 50 x highbay replacements might receive $5,000-$10,000 in rebates
• 100 x office panel replacements might receive $3,000-$6,000 in rebates

These are indicative figures. Actual amounts vary based on scheme parameters, fitting types, and your delivery partner’s offer.

Practical Steps

Step 1: Audit Your Existing Lighting

Before approaching delivery partners, know what you have:

• Number and type of existing fittings
• Approximate wattages
• Operating hours
• Current condition

This helps you get accurate quotes and avoids wasted time.

Step 2: Get Multiple Quotes

Approach several REES delivery partners. Ask:

• What products do they offer?
• What’s the rebate or subsidy amount?
• What’s the installation cost after rebate?
• What are the documentation requirements?
• What’s the timeline?

Compare the net costs and the quality of products being proposed.

Step 3: Verify Product Quality

Some REES programs push high-volume, low-margin products. That’s not necessarily bad, but check:

• CRI ratings (important for offices and retail)
• Warranty terms
• Compliance with AS/NZS standards
• Brand reputation

Don’t accept rubbish just because it’s cheap.

Step 4: Coordinate Installation

Installation needs to be done by a licensed electrical contractor. Some delivery partners have their own installation teams; others use subcontractors or expect you to arrange installation.

Understand the logistics, especially for after-hours work or sites with access restrictions.

Step 5: Keep Documentation

You’ll need to sign off on completion and may need to keep records for audit purposes. Ensure you receive:

• Copies of invoices/receipts
• Product compliance certificates
• Electrical safety certificates
• Before and after photos (if required)

REES vs ESS/VEET

How does REES compare to the NSW and Victorian schemes?

Similarities:

• Both fund commercial LED upgrades
• Both require Australian standards compliance
• Both reduce the net cost of efficiency projects

Differences:

• REES doesn’t create tradeable certificates in the same way
• REES rebate structures tend to be simpler (fixed amounts rather than variable certificate prices)
• REES market is smaller, so fewer delivery partners
• Administrative processes differ

In my experience, REES offers good value but with less flexibility than the certificate trading schemes. You’re typically choosing from set packages rather than optimising certificate value.

Regional SA Considerations

Adelaide-based projects have good access to REES delivery partners. Regional SA can be more challenging:

• Fewer delivery partners servicing remote areas
• Installation costs higher due to travel
• May need minimum project sizes to be viable

If you’re in regional SA, it’s worth asking delivery partners explicitly about coverage. Some will service regional areas; others focus on metro Adelaide.

The Priority List

For South Australian commercial facilities, LED retrofit opportunities roughly in order of typical impact:

1. 24/7 operations (cold storage, security lighting): Maximum energy savings
2. Warehouse and industrial: High wattage existing lights, long operating hours
3. Retail: Extended trading hours, lighting-intensive
4. Office: Lower hours but often straightforward retrofits
5. External areas: Security lighting, car parks

The REES rebate helps all of these, but the best paybacks come from high-usage applications.

Timing Considerations

REES scheme parameters can change. Rebate levels, eligible activities, and administrative requirements evolve over time as the scheme is reviewed.

This isn’t a reason to wait indefinitely, but it does mean:

• Quotes have limited validity
• What applies today might not apply next year
• If you’ve got a viable project, don’t delay assuming better deals will come

The energy savings start the day the LEDs are installed. That’s guaranteed, regardless of scheme changes.

Getting Started

Contact a few REES delivery partners and explain your situation. Most will offer a free assessment to scope the opportunity.

You’re under no obligation after an assessment. Use it to understand your options before committing.

And remember: REES is a pathway to reduce retrofit costs, but the underlying project has to make sense. Calculate your payback including the rebate. If it’s attractive, proceed.

South Australian businesses have a genuine opportunity here. Don’t leave rebate money on the table.