Small and medium enterprises looking to improve their energy efficiency will be handed $62.6 million in grant funding, thanks to a new program revealed in Tuesday’s federal budget.
Electricity prices have soared as a result of the war in Ukraine, which disrupted global energy markets and punished the budgets of households and businesses alike.
In a joint statement, Minister for Climate Change and Energy Chris Bowen and Assistant Minister for Climate Change and Energy Jenny McAllister said the crisis has “shown Australia the consequences of a decade of underinvestment in the cheapest form of new energy – firmed renewables”.
More broadly, a growing awareness of the detrimental environmental effects of fossil fuel power generation has highlighted the need for global efficiency measures.
Under a new plan revealed in the federal budget, small and medium enterprises hoping to invest in energy efficient upgrades will be eligible for Commonwealth grants.
These payments will cover feasibility studies, planning measures, along with equipment and facility upgrades designed to boost efficiency, lower emissions, or smooth out power demand.
The scheme will kick off in the 2022-2023 financial year, but budget papers did not provide further detail on when applications would open or what precise upgrades would be eligible.
The new grant program will be partially funded by resources already assigned to the Department of Climate Change, Energy, the Environment and Water.
In Labor’s green energy strategy, the SME grant program forms part of a larger whole.
To both address skills shortages in the electrical trades and prepare Australia’s workforce for the needs of a renewable-dependant future, the government will deploy $95.6 million in wage subsidies to support 10,000 apprentices through its New Energy program.
The government also plans to deploy $20 billion in “low-cost” finance in order to overhaul the electricity grid, modernising it for today’s renewable energy generation, transmission, and storage capabilities.
A further $1.9 billion will go towards its Powering the Regions Fund, designed to help existing power-generating regions transition to greener options, while exploring opportunities in areas new to energy generation.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
