A range of Commonwealth, state and territory grant programs are available to assist companies with funding energy efficiency projects. There is a comprehensive Grants and Assistance section at business.gov.au. Eligibility requirements can differ significantly across programs and jurisdictions, however, so reviewing funding guidelines is an important first step.
Funding sources are not limited to grant programs. They also include co-financing packages, loans, tax incentives and other innovative financing solutions. Many are designed to support transition to a low carbon economy or to overcome recognised barriers to energy efficiency uptake, including lack of up-front capital and split incentives for building owners and tenants.
Funding options available
- Grant programs – A range of grant programs offered by Commonwealth, state and territory governments can reduce the payback period of energy efficiency projects and support investment in clean technology projects.
- Loan financing – Financing arrangements can be designed to suit different business requirements, including avoiding upfront costs and repaying loans with the savings generated from the energy efficiency project.
- Tax incentives – The R&D tax incentive provides tax offsets to encourage more Australian companies to invest in research and development.
- Mandatory obligation schemes – Tradeable certificates provide a financial incentive for energy users to invest in clean energy initiatives, on top of the ongoing energy savings generated by the project.
- Energy Efficiency Information Grants (EEIG) evaluation report – The EEIG program (now closed) helped industry associations and non-profits to provide practical, tailored energy efficiency information to SMEs and community organisations. This report examines the experiences and outcomes of the EEIG program.