Tax planning


21st February, 2024

Grants for SMEs to lower energy bills

A further $41 million for small and medium businesses to lower energy bills has been announced by the federal government.

The Energy Efficiency Grants (EEG) for Small and Medium Enterprises is part of the campaign to improve energy efficiency, save on energy bills and lower emissions.

The grants are between $10,000 and $25,000 and can be used to upgrade to more efficient equipment.

Moreover, this includes replacing air conditioners with high efficiency units or gas heating boilers with heat pumps.

The first round of grants awarded $15.5 million to 674 businesses for energy savings. These included upgrades to pool covers, heat pumps, air conditioners, as well as more efficient hot water pumps and compressed air improvements.

Helping improve the bottom line

Minister for Small Business Julie Collins said, “I encourage small businesses to read the Grant Opportunity Guidelines to check if they are eligible for this new support.”

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 and allowing them to reinvest savings.

“We want to help small businesses make every watt count. Upgrades to appliances not only saves on bills, but also contributes to Australia’s emissions reduction targets.”

How to apply

Round two is a $41.2 million investment from the $62 million program that will help businesses use less energy. This will also improve competitiveness, while reducing their carbon footprint.

Also, the $41.2 million will be allocated to states and territories in proportion to the national distribution of SMEs.

Grants will be awarded on a first-come, first-served basis until each jurisdiction’s allocation is exhausted.

Applications for the grants will open across the country on the following dates:

  • Thursday 22 February 2024: VIC
  • Friday 23 February 2024: SA & NT
  • Monday 26 February 2024: NSW
  • Tuesday 27 February 2024: WA, TAS & ACT
  • Wednesday 28 February 2024: QLD

Click here for more information about the Energy Efficiency Grants for SMEs program and how to apply.