Energy Efficiency Grant for SME Round 1: Government Funding Opportunities for SME to Install Power Factor Correction
Update 28 March 2023: Funding allocation limit for this grant is now exhausted for all jurisdiction. Round Two is scheduled to open in 2024. Contact us to join our email list and stay updated to find out about Round 2 of EEG.
On This Page:
- About Energy Efficiency Grant (EEG) for SMEs
- Grant Details
- What Can the Grant Money be Used for?
- Why Include Power Factor Correction in Your Grant Application?
- Who is Eligible for the Grant Program?
- How to Apply for the Grant?
- Timing of Grant Opportunity
- Notification of Grant Application Outcomes
- Monitoring of Grant Activity
- Conclusion
- Useful Links and Key Documents
Small and medium-sized businesses across the country will benefit from a $62 million grant program to help them be more energy efficient, ease the pressure on energy bills and reduce emissions. The Federal Government published guidelines for the Energy Efficiency Grants for SMEs, with a $16 million investment announced in Round 1 to support SMEs in saving on their energy bills. This article outlines the grant details, eligibility criteria overview, why include Power Factor Correction in your grant application and how we can help.
About the Energy Efficiency Grant (EEG) for SMEs
The Energy Efficiency Grants for Small and Medium-Sized Enterprises (the program) will run over two years from 2022-23 to 2023-24. The objectives of the program are:
- improve energy efficiency practices and increase the uptake of energy-efficient technologies
- assist small and medium businesses in managing their energy usage and costs
- reduce greenhouse gas emissions
Grant Details
- Opening Date: Monday, 6 March 2023, 10 am AEDT.
- Closing Date: Wednesday, 19 April 2023, 5 pm AEST.
- Grant Amount: $10,000 to $25,000 to cover up to 100 per cent of the eligible project expenditure. You are responsible for any remaining eligible expenditure above the maximum grant amount and ineligible project costs.
- Project Period: The maximum project period is 12 months.
This demand-driven grant is awarded to eligible applicants on a first-come, first-served basis in order of the application receipt until funding is exhausted in each state and territory. The program is expected to be oversubscribed, so we encourage SMEs to apply as soon as possible within the application open dates.
What can the grant money be used for?
To be eligible, your project must:
- be aimed at reducing the energy consumption of your business in Australia.
- have at least $10,000 in eligible expenditure
- include one or more of the activities listed in the Grant Opportunity Guidelines
- expenditure must be a direct cost of the project and be incurred by you for required project audit activities
- the project expenditure must also be incurred between the project start and end date for it to be eligible unless stated otherwise in your grant agreement
- you must not commence your project until a grant agreement has been executed with the Commonwealth.
See the Grant Opportunity Guidelines on business.gov.au for a complete list of eligible activities for the EEG for SMEs.
One of the eligible activities for the grant is the installation of Power Factor Correction. There are many reasons for SMEs to include PFC in their energy efficiency Grant application. It is one of the most direct and quickest ways to receive funding, improve your energy efficiency AND reduce your ongoing electricity bills with minimal disruption. Read what our customers say about how PFC is helping them improve energy efficiency.
A Power Factor Correction Unit consists of capacitor modules and a controller that acts as a buffer between your incoming power supply and your main distribution panel. Installing Power Factor Correction can improve energy efficiency and lower electricity demand charges without coordinating a massive overhaul of your equipment, heating, refrigeration, and lighting systems.
Speak to us about installing Power Factor Correction and including it in your grant application.
Who is Eligible for EEG for SMEs?
To be eligible, you must:
- Have an ABN number and be one of the following types:
- an entity incorporated in Australia
- a partnership
- a sole trader.
- Be a small and medium-sized business with an employee headcount of 1-199 employees averaged over any consecutive 12-month period since 1 July 2019.
- Provide evidence that you have consent from the owner of the project location to undertake the project if you’re not the owner of the project location.
Note: if successful, you must ensure appropriately qualified personnel are engaged to undertake agreed activities where applicable.
Applicant must satisfy all eligibility criteria. The project cannot be funded if the applicant receives funding from another Commonwealth, state or territory government grant for the same activities funded under this grant program.
How to Apply for the Grant:
- Step 1: Read and understand the complete Grant Opportunity Guidelines, sample application form and sample grant agreement published on business.gov.au and GrantConnect.
- Step 2: Set up an account to access GrantConnect.
- Step 3: Provide all the information requested
- Step 4: Address all eligibility criteria
- Step 5: Include all necessary attachments
Timing of Grant Opportunity:
If your application is successful and you enter into a grant agreement, it is expected that you will be able to commence the project around June 2023.
Notification of Grant Application Outcomes
Applicants will be notified in writing of the application outcome and any specific conditions attached to the grant. Non-sensitive details of successful projects will be published on GrantConnect.
Monitoring of Grant Activity
If your application is successful, you are expected to submit reports in line with the grant agreement, such as progress against agreed project milestones and project expenditure, including the expenditure of future grants. You will also be required to submit an end-of-project report.
Conclusion
SMEs are under cost pressure, with 36% of small businesses reporting that electricity is one of their biggest overheads and a further 38% reporting that electricity is a substantial cost to the business (Energy Consumer Sentiment and Behaviour Surveys, December 2022).
The grant is an excellent opportunity to ease pressure on energy bills for these SMEs. The funding might help manufacturers or commercial buildings install Power Factor Correction units to improve energy efficiency and reduce ongoing electricity demand charges.
Grant applications will open on 6 March and close on 19 April 2023. Speak to our energy efficiency experts about how to best utilise this grant opportunity and get a free quote to support your grant application.
Useful Links and Key Documents
- Grant Opportunity Information (Weblink)
- Key Documents (Weblink to download)
Disclaimer: Grant application information is current as of 1 March 2023. The information provided is for general information only and should not be relied upon as the sole basis for making decisions. Visit business.gov.au for more details.
This article was originally published on qualityenergy.com.au on 1 March 2023.
Since 1989, Quality Energy is a power quality and energy efficiency solutions provider and manufacturer. Our mission is to help businesses solve the problem of ever-increasing energy costs and inconsistent, unreliable power supply. Besides Power Factor Correction, our Power Solutions experts can also design and install a solar power system for your site, furthering your sustainability reputation and reducing your site's reliance on grid-generated electricity.
Give us a call on 1800 736 374 or
send us an email to discuss your energy efficiency project.
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