Energy Efficiency Grants for Small Business in Australia

Energy Efficiency Grants for Small Business in Australia

Last updated on December 12, 2023

What is the Importance of Energy Efficiency in Small Businesses?

What is the importance of energy efficiency for small businesses?

The answer to this question relates to a number of different factors, most importantly helping small businesses save money from the rising energy cost and utility bills.

Therefore, it is essential that the owners and staff of small businesses pay close attention to the programs that they implement.

From teaching every employee different ways to conserve energy in the workplace to looking for special grants to fund these initiatives, the importance of energy efficiency in small businesses is not only good for the environment but also good for the company’s bottom line.

This article will address the topics that explore the current plight of small companies as it relates to rising energy prices.


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    Current Energy Prices, Rising Trends And Their Impact on Small Business.

    According to information published on sites like the Australian Chamber of Commerce and Industry (ACCI), the price of energy is surging and is having a harsh financial impact on small businesses.

    One of the industries that have been hit hardest is manufacturing, especially because it is an intensive energy sector that relies on high energy consumption to effectively operate .

    This domino effect is also compounding cost issues due to country-wide labor shortages. Therefore, it is important for small business owners to pay close attention to the energy sector and how it is impacting their day-to-day operations.

    This allows both owners and staff to identify the most effective means to adjust and manage costs, while at the same time identifying other viable solutions, including applying for energy efficiency grants to fund these initiatives.

    Potential Challenges in Achieving Energy Efficiency

    As the cost of energy continues to rise, there are several challenges that a small business may eventually face. Here are just a few that tend to stand out immediately.

    1. Lack of funding

    Updating the energy efficiency of the business will often require upfront investments.

    This can be a real challenge for small business owners that do not have the necessary funding, and might not be able to implement energy efficiency programs which could save them a lot of money in the long run.

    2. Lack of awareness and education

    Another big challenge that many small businesses usually encounter is the lack of implementing programs that properly educate their employees on the most effective ways to reduce the company’s energy costs.

    This means the staff may or may not be aware of the most energy-efficient methods and measures to support their company’s day-to-day activities (ie. only buy recyclable office supplies for the administration).

    3. Employees may be resistant to change

    Since most people are resistant to change, it may be difficult to implement the new energy efficiency operational measures that are necessary for the business to sustain itself.

    This is especially true when attempting to replace outdated processes with new energy-efficient procedures that may disrupt the operation for extended periods of time.

    4. Technical barriers

    When business owners do their research, they may find energy-saving technologies that can reduce the cost of operating the business. However, some of the latest technologies may be relevant only to certain buildings or systems.

    Moreover, if the business does not have the skills and expertise to install or maintain these new technologies, they can miss major opportunities that will not only save money but also ensure employees’ comfort.

    The Need for Energy Efficiency Grants in Australia

    Funding is generally a huge barrier for small businesses, which is why the Australian government has proposed a number of grants that can help with the financing.

    Since small businesses are the backbone of the economy, the government wants to help them thrive and grow.

    These grants can help small businesses improve their energy efficiency standards and save money.

    However, before the government approves the grants, the business must apply for the programs that they are eligible for. It is also important to note that the business must be able to prove that they meet certain requirements.

    For example, if a small business would like to update its facility’s air conditioning system with a new energy-efficient model, this project would need to meet the energy efficiency program requirements.

    So, it is very important that the business owners and their staff do their homework in advance before filling out the required paperwork.

    Different Types of Grants and Incentives Available

    To accommodate the needs of small business owners, there are different types of grants and incentives available. It is important that all business owners learn about the different types, including the requirements for each.

    Here are 4 of the most beneficial types that owners may want to consider.

    • Victorian business energy saving grants
    • NSW business energy saving grants
    • SA National business energy saving grants
    • Business energy-saving grants

    Eligibility Criteria for Grants

    Before you apply for one or more of these grants, you need to know if your business is eligible for that specific program.

    For example, here are 4 of the eligibility requirements that must be met to receive a grant:

    • Businesses must have an ABN (Australian business number)
    • Employee headcount must range from 1 to 199 employees for small to midsize business
    • Employee headcount has to average these numbers for at least 12 months consecutively. The time period is from July 1, 2019
    • Consent of the owner (locale for the project).


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      Objectives of grant program

      Before applying for any grant, it is important to know what the objectives of the program are. Here are some of the objectives to consider:

      • Helping with improving energy efficiency technologies
      • Receiving required assistance for small to midsize companies to effectively manage costs and consumption
      • Reducing greenhouse gas emissions

      What is the eligibility for receiving grants?

      To receive one of these grants, there are also some specific eligibility requirements that a small business must meet. This means the small business owner will need to understand the eligibility details for the particular grant, before qualifying for the pool of applications.

      For instance, some grants are awarded on a first-come, first-served basis.

      • Apply on the Date that is mentioned on the website.
      • Do not wait until the last minute to submit an application since there is a date beyond which applications will not be considered .
      • Any and all other requirements can be found on the website for that specific program.

      More details on the website.

      How to Apply For The Grant

      Applying for these grants is actually a straightforward process. To find the application process, you will need to go to the official site for the program that you are interested in and carefully review the details and requirements. .

      How Energy Efficiency Grants Can Help Small Businesses

      These grants are designed to help small businesses in a number of different ways. Here are 2 of the most beneficial:

      1. The first is by offering financial assistance to help businesses save money, which can be invested in business-relevant processes allowing further growth.
      2. Purchase Equipment and systems that are essential for the business’s continued and effective operation. If the company has outdated equipment that is draining the business’s energy, the grants can help them purchase newer equipment that will not only save on energy but reduce their expenses.

      Financial Benefits of Grants

      The main objective behind the grants is to help companies financially. Since some of these grants can range from $10,000 to $25,000, the grants can help businesses with the upfront money needed to update their equipment to new and energy-efficient models.

      >> Related Reading: NSW Solar Rebate- Everything You Need To Know

      Operational Improvements through Energy Efficiency

      There are many different ways that energy efficiency can improve the operation of a small business. One of the most essential and vital is the reduction of energy costs.

      The rising costs of energy make the savings from energy efficient systems more attractive and ensure more financing dedicated for the business’s growth and operational improvement.

      >> Related Reading: 7 Ways to Make Your Home Energy Efficient


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        E-Green Electrical

        E-Green Electrical is a top tier energy efficiency company based in Sydney. We focus on utilising government rebates to help reduce our clients energy consumption by installing energy efficient solutions. E-Green boasts a rich heritage within the realm of energy efficiency, consistently staying up to date with cutting-edge technologies to deliver optimal results for our valued customers.

        We don't just sell products and services; we also provides tips and information on how to help reduce energy consumption. We believe in using energy wisely and teaching others how to do the same. For E-Green, it’s important to share knowledge with the community. That's why we regularly write articles about saving energy, new government rebates available and increasing sustainability.

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