Energy Efficiency Grants for Small and Medium Enterprises Round 2

Opening Date: 22 February 2024
Closing Date: 5pm AEST 8 April 2024

Round 2 of Energy Efficiency Grants for Small and Medium-Sized Enterprises aims to assist businesses in upgrading or replacing inefficient equipment.

The objectives of the program are:

  • 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:

  • increase 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

Key Dates:

Due to the nature of this program and the demand on the system, applications will open with a staggered approach based on the jurisdiction you are applying for. Please see the application opening date and times below for each jurisdiction:

  • VIC – Thursday 22 February 2024 12.00pm AEDT
  • NT – Friday 23 February 2024 12.00pm ACST
  • SA – Friday 23 February 2024 12.00pm ACDT
  • NSW – Monday 26 February 2024 12.00pm AEDT
  • WA – Tuesday 27 February 2024 12.00pm AWST
  • TAS, ACT – Tuesday 27 February 2024 12.00pm AEDT
  • QLD – Wednesday 28 February 2024 12.00pm AEST

Who is this for?

This grant opportunity is for small and medium sized businesses with an employee headcount of 1 to 199 employees. You must have an ABN and have been in operation for a minimum of 24 months

Who can’t apply?

You are not eligible if you received grant funding under the Energy Efficiency Grants for Small and
Medium Sized Enterprises Round 1.

We cannot fund your project if it receives 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.

You are not eligible if you are a Commonwealth, state, territory or local government body, including government business enterprises, public schools and public hospitals.

Funding Amount:

A grant of up to $25,000, to cover up to 100% of eligible expenditure. There is a total of $41.241 million available for this grant opportunity. Grant funding will be distributed between states and territories based on the distribution of small and medium sized businesses nationally. See table below

JurisdictionCount of businesses with 1-199 employeesJurisdictional split %Financial split $
New South Wales367,26036%14,919,307
Victoria264,66626%10,751,602
Queensland195,90919%7,958,467
South Australia56,4616%2,293,631
Western Australia91,4339%3,714,309
Tasmania17,6102%715,376
Northern Territory6,6931%271,892
Australian Capital Territory15,1751%616,458
Australia1,015,207100%41,241,042

Eligible Activities:

Focus AreaEligible Activities
Energy audits and energy management– Audit a system or facility to AS/NZS 3598
– Develop an energy management plan for your organisation
– Conduct an airtightness test in accordance with AS/NZS ISO 9972 to identify possible energy efficiency improvements
– Conduct an engineering feasibility study for an energy efficiency upgrade
– Assess the feasibility of an investment that would reduce your energy use
Energy monitoring– Purchase and install equipment to meter, monitor and record energy use
– Short term hire of energy metering equipment
– Digitalise energy meters/sub meters or sensors relating to energy using processes
– Automatic fault detection for energy using equipment/processes
– Implement an energy data management system
Power supply– Replace existing fossil fuel or inefficient electric-powered equipment for heating, drying or cooling with a heat pump system equivalent
Heat Pumps– Replace existing fossil fuel or inefficient electric powered equipment for heating, drying or cooling with a heat pump system equivalent
Upgrades to motors, including for compressors, pumps, fans, conveyors, mixers and blowers– Replace a motor with an electronically commutated motor
– Install a variable speed drive for any motor
– Replace a motor with a higher efficiency motor, or a lower power motor that is better matched to its duty point
– Replace a pump, fan, industrial blower, conveyor, compressor or industrial mixer with a more energy efficient equivalent
Heating Ventilation and Air Conditioning (HVAC)– Replace an existing chiller, air conditioner and air conditioner compressor condenser, HVAC compressor, boiler, space heating hot water heater, chiller or cooling tower with a higher-efficiency unit
– Install or upgrade an economy cycle on an air conditioning unit
– Install carbon monoxide sensors or carbon dioxide sensors to control ventilation
– Replace air distribution equipment to facilitate fan energy savings
– Retrofit electronic expansion valves to HVAC compressor or chiller
– Replace a fossil-fuelled heater and/or cooler with a reverse cycle air-conditioner
Commercial refrigeration– Replace an existing refrigerated display cabinet, refrigeration compressor with a new high-efficiency unit
– Install air purging, night blinds, glass doors or lids, or rapid close doors on refrigerated spaces
– Upgrade insulation on a cool room or upgrade a cool room to be airtight
– Retrofit an electronic TX valve for a refrigeration compressor or chiller
– Install a (small) low-load chiller or refrigeration unit or a variable speed compressor for low loads, isolated loads or capacity modulation
– Replace an existing liquid chiller or air-cooled chiller unit, refrigerator, compressor or cool room with a higher-efficiency unit
Install automatic controls to switch off refrigeration fan when cold room door is open
Compressed Air Improvements– Replace air compressor with higher efficiency unit or install variable capacity unit for trim control
– Reconfigure intake to use cooler or cleaner air
– Install economiser regulators
– Optimise compressed air storage
Water Heating– Recover heat from cooling system or air compressor
– Upgrade insulation on hot water pipes, valves and fittings
– Install chemical sanitisation equipment to reduce hot water demand
– Replace an existing hot water system with a more efficient new heat pump or solar thermal hot water heater
– Replace an existing pool heater with a new heat pump or solar thermal pool heating system
– Install solar thermal preheat
– Replace an existing pool pump with a variable speed pump
– Provide a swimming pool cover to a currently uncovered heated pool

Contact Brett for more details

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Brett Lewis

Senior Consultant - Carbon Strategy

Brett is a Chartered Accountant and Carbon Strategy expert who is passionate about educating and supporting organisations embarking on a…

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