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Businesses will be able to apply for grants of up to $25,000 to switch to more efficient equipment, saving on energy bills and reducing emissions.
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Government commits $41m to power SME energy relief
12 February 2024
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9 minute read
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, it said in a statement last week.
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The funding would be used for the second round of the government’s Energy Efficiency Grants and was almost triple the amount available during the initial $15.5 million round last year.
Minister for Small Business Julie Collins encouraged businesses to apply for grants up to $25,000.
“The Albanese Labor government is delivering for small business, helping to improve their long‑term resilience. These grants are another example of our government providing targeted support to small businesses,” she said.
Jenny McAllister, Assistant Minister for Climate Change and Energy, said the grant would help the bottom line of small businesses and reduce their carbon footprint.
“Investing in energy efficiency can save on energy costs, taking the pressure off small businesses and allowing them to reinvest savings to their business,” she said.
“We want to help small businesses make every watt count. Upgrades to appliances like freezers or air conditioners not only saves on bills, but also contributes to Australia’s emissions reduction targets.”
In 2022, the government set a target of reaching emission levels of 43 per cent below 2005 levels by 2030, and net zero by 2050.
The introduction of the Energy Efficiency Grants scheme last year saw $15.5 million in funding awarded to 674 businesses for “energy efficient activities”.
It said businesses used the funding to upgrade pool covers, refrigerators, LED lighting, window glazing, and equipment insulation, among other activities.
Businesses could 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.
The government said the latest funding round would be allocated to states and territories in proportion to the national distribution of SMEs, with NSW receiving $15 million and Victoria receiving $11 million.
Last year, the Australian Energy Regulator announced electricity prices would increase between 20 and 25 per cent for customers in South Australia, NSW and South-East Queensland from July.
The average quarterly electricity bill faced by small businesses averaged around $953, according to data from comparison website Canstar Blue.
Grant applications would open from February 22 and would be awarded on a “first-come, first‑served basis” until funding was exhausted, it said. Grants awarded would range between $10,000 and $25,000.
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