Small and medium businesses struggling to keep up with rising power bills can now apply for up to $25,000 in federal government grants, with the funding intended to help enterprises install new energy-efficient technology and investigate ways to effectively reduce their power usage.
From Monday, eligible SMEs can apply for the first round of the Energy Efficiency Grants for Small and Medium Sized Enterprises (EEGSME) scheme, a program the federal government hopes will kick start long-term energy efficiency upgrades in the private sector.
Dozens of projects are eligible for grant funding: businesses can claim grants for new energy-efficient refrigerators and air conditioners, LED lighting, water boiler replacements, insulation around ovens and pipework, and double-glazed windows, among others.
In addition, businesses can claim the cost of energy efficiency audits, which may be the first step a small business takes when determining which updates will provide the greatest benefit and spending on systems designed to monitor a building’s energy usage.
In a joint statement, Minister for Small Business Julie Collins and Assistant Minister for Climate Change and Energy Jenny McAllister said Round 1 of the EEGSME program will provide $16 million of funding.
It forms part of a broader $62 million federal government commitment to boosting business energy efficiency.
To apply, businesses must have a headcount of 199 people or fewer and plan energy-focused expenditure of $10,000 or more.
Applications close Wednesday, April 19, or when its funding is exhausted.
The program’s launch comes just over a year after the outbreak of war in Ukraine, which disturbed global energy markets, elevated domestic consumer costs, and created an opportunity for resource giants to reap significant profits.
Despite interventions by the federal government, Treasurer Jim Chalmers last month said energy prices are still expected to rise a further 23% in 2023-2024.
Those disruptions, and elevated costs, continue to affect small businesses nationwide.
“Across the country, I hear from small businesses who tell me that energy prices are an increasing cost to their business which is why the Albanese Government is acting,” Collins said.
“The grants will provide practical assistance alongside the Government’s whole-of-economy approach to rising energy costs, giving businesses more security and confidence.”
The scheme was announced as part of the Labor Government’s 2022-2023 Federal Budget, which originally forecast the EEGSME program would provide $17 million in funding over the financial year.
It was one of a suite of measures the federal government has introduced in an attempt to minimise the harms of runaway energy prices.
In December, the federal government successfully guided its energy price cap legislation into law.
The federal government also earmarked up to $1.5 billion in power bill relief for struggling households and small businesses.
That funding will be matched by states and territories, Prime Minister Anthony Albanese said at the time, with the precise funding mechanisms to be worked out by each jurisdiction according to the specific needs of their homes and businesses.
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.
