Small Business Energy Efficiency Grants

Energy Efficiency Grants for Small and Medium Sized Enterprises Round 1

Funding to purchase energy-efficient equipment upgrades for small and medium businesses is available.

The Energy Efficiency Grants for Small and Medium Sized Enterprises Round 1 will support businesses to upgrade or replace inefficient equipment to improve their energy efficiency. These upgrades will enable industries to reduce their energy use and manage energy cost volatility in the long term. This will contribute to Australia’s target of a 43% reduction on 2005 emission levels by 2030. 

Key points

  • Grants from $10,000 to $25,000 to cover up to 100% of eligible project expenditure
  • Funding will be distributed between states and territories based on the distribution of small and medium sized businesses nationally
  • This is a demand-driven grant opportunity with grants awarded to eligible applicants on a first come, first served basis until the funding is exhausted in each jurisdiction
  • Grant applications close 19 April 2023.

Who is this for?

This grant opportunity is for small and medium sized businesses with an employee headcount of 1 to 199 employees.

The objectives of the program are to: 

  • improve energy efficiency practices and increase the uptake of energy efficient technologies 
  • assist small and medium businesses to manage their energy usage and costs
  • reduce greenhouse gas emissions. 

The intended outcomes of the program are: 

  • increased awareness of energy efficiency opportunities and help businesses to save energy  
  • reduced power bills for small and medium businesses  
  • emissions abatement to contribute to Australia reducing its emissions to 43% below 2005 levels by 2030.

Check if you can apply

You can apply if you meet the eligibility criteria. The eligibility criteria are a set of rules that describe who can be considered for this grant. You can apply if you:

  • are an eligible entity
  • have an eligible project
  • have eligible expenditure.

The rules are in the grant opportunity guidelines.

If you enter a grant agreement under the Energy Efficiency Grants for Small and Medium Enterprises program you cannot receive other funding for the same activities from other Commonwealth, state or territory programs. Funding includes, but is not limited to, grants, rebates, contributions, certifications and certificates that have a value and any other form of financial assistance.

Eligible entities

You can apply if you:

  • have an Australian business number (ABN)

and are one of the following entity types: 

  • an entity incorporated in Australia 
  • a partnership
  • a sole trader.

You must also:

  • be a small or medium sized business with an employee headcount from 1 to 199 employees averaged over any consecutive 12-month period since 1 July 2019
  • have consent from the owner of the project location to undertake the project, if the entity is not the owner of the project location.

 You can’t apply if you are:

  • an organisation, or your project partner is an organisation, included on the National Redress Scheme’s list of Institutions that have not joined or signified their intent to join the Scheme
  • an employer of 100 or more employees that has not complied with the Workplace Gender Equality Act (2012)
  • an unincorporated association
  • a trust (however, an incorporated trustee may apply on behalf of a trust)
  • a Commonwealth, state, territory or local government body (including government business enterprises, public schools, and public hospitals)
  • a non-corporate Commonwealth entity
  • a business that has more than 199 employees.

Eligible projects

Your project must:

  • be aimed at reducing the energy consumption of your business in Australia
  • have at least $10,000 in eligible expenditure.

Your project may include the following activities:

  • an energy audit of your site or part of your site
  • the design, and installation of energy efficient equipment, including any necessary wiring or other electrical work
  • measuring, monitoring and recording energy usage
  • the commissioning or tuning of equipment installed.

Eligible expenditure

You can use this grant funding for:

  • purchase of equipment to replace existing equipment, where the new equipment is higher energy efficiency
  • costs to decommission, remove and dispose of the old equipment that is replaced
  • purchase of equipment or components to help an existing system run more efficiently in regard to energy
  • building permits or approval costs to install equipment, where required
  • the cost of suppliers, consultants and contracted labour undertaking eligible project activities.

Check if you’re ready to apply for a grant

Finding a suitable grant opportunity is just the start of the process to get funding. The application process can take time and effort. Understanding the entire process will help you be grant ready and may improve your chances of getting funding.

Use this checklist to find out what it takes to apply for a grant »

When you’re ready to apply

Submit an application through the online portal. You’ll need to set up an account when you first log into the portal. The portal allows you to apply for and manage a grant or service in a secure online environment.

Applications will be checked to ensure they meet the eligibility criteria in order of application receipt.

Before you apply, make sure you:

  • read and understand the grant opportunity guidelines
  • read the grant agreement
  • read the sample application form.