Second round of grants now open for small businesses to make energy efficient upgrades

This week saw the release of the second round of Energy Efficiency Grants for Small and Medium-Sized Enterprises by the federal government. Grants will be available in a first-come, first-serve basis for businesses to upgrade or replace inefficient equipment or make energy efficiency changes to their premises. Adding to the $15.5 million made available in 2023, the government has committed an additional $41 million in grant funding to help small and medium enterprises save on energy bills and reduce their carbon footprint.

Assistant Minister for Climate Change and Energy Jenny McAllister said the grants would improve the bottom line of small businesses and lower emissions.”Investing in energy efficiency can save on energy costs, taking the pressure off small businesses and allowing them to reinvest savings to their business.”

As energy prices continue to rise, small businesses have been facing increased pressure to raise prices to stay competitive and these incentives are being made available across the states to help with bill shock and to help small enterprises swap out polluting energy sources and machines for renewable-powered electric versions to permanently lower the cost base of a business

This grant opportunity provides eligible small and medium businesses between $10,000 and $25,000 to purchase energy efficient equipment to reduce and manage energy usage and costs.

The introduction of the Energy Efficiency Grants scheme last year saw 674 businesses be able to afford “energy efficient activities” such as upgrading pool covers, refrigerators, LED lighting, window glazing, and equipment insulation, among other activities. Businesses can also claim grants for conducting energy efficiency audits and installing energy monitoring systems or replacing air conditioners with high-efficiency units, gas heating boilers with heat pumps, gas cookers with electronic equivalents and upgrading display fridge cabinets.

Grant funding will be distributed between states and territories based on the distribution of small and medium sized businesses nationally. It is open for small and medium sized businesses with an employee headcount of 1 to 199 employees but only until Monday 8 April 2024 5:00pm AEST.

To apply, businesses must complete and submit the application form for the correct jurisdiction for their business or project location and address the eligibility criteria as listed on the website. Application dates and times are different across Australia so applicants should visit the Business Grants Hub portal to find out when applications are open for your state or territory.