Accessing government energy grants in Victoria (VIC) and New South Wales (NSW) can help reduce energy costs and improve energy efficiency in your home or business.
A range of government grant programs are available to assist businesses with funding energy efficiency projects. Eligibility requirements can differ significantly across programs and jurisdictions, so it is necessary to review funding guidelines.
Whatever option you choose, you should conduct an energy audit before considering finance options. So, how do you access government energy grants in VIC and NSW? Let’s get into the details.
2024-25 Energy Bill Relief Fund for Households and Small Businesses
What is the 2024-25 Energy Bill Relief Fund?
The Commonwealth Government, in collaboration with states and territories, is providing up to $3.5 billion in electricity bill relief for eligible households and small businesses.
This substantial financial aid is designed to alleviate the financial pressures related to energy costs, providing relief and security.
Victorian families will receive up to $300, while eligible small companies may receive up to $325 to assist them pay their electricity costs. Households will accept payments in quarterly instalments ($75 per quarter), while small enterprises will get a single payment ($325).
Support for Victorian Households
Victorian households can receive up to $300 in electricity bill rebates, distributed in four quarterly payments of $75.
To qualify for this rebate, households must:
- Have an active electricity account with an energy retailer for their primary residence.
- Use electricity solely for domestic purposes, as commercial properties are not eligible.
The first $75 payment was issued in August 2024, with subsequent credits scheduled for:
- October 1, 2024
- January 13, 2025
- April 1, 2025
Most households will automatically receive the rebate through their electricity provider, with no need for further action. This streamlined process is designed to make it as easy for households to access the financial relief they need.
Households in Embedded Networks
Residents in embedded networks, such as caravan parks, retirement villages, and apartment buildings, can apply for the rebate via Victorian Energy Compare. These customers will receive a one-time payment of $300.
Support for Victorian Small Businesses Eligible small businesses in Victoria will receive a one-time rebate of $325 on their electricity bill. This support is a testament to the value that small businesses bring to the community and recognition of their contribution to the economy.
Eligible small businesses in Victoria will receive a one-time rebate of $325 on their electricity bill.
To qualify, businesses must:
- Have an active ABN registered on the Australian Business Register.
- Be on a separately metered business tariff.
- Have an annual electricity consumption below 40 MWh.
The rebates began in August 2024, and most businesses will receive the credit automatically through their electricity provider.
Small Businesses in Embedded Networks
Australian Government Grants and Financial Assistance| Grants and Funding
Find funding, loans, and support programs for your business across all levels of government at business.gov.au.
Before applying, you can assess your readiness and learn about the grant application process to improve your chances of securing funding. For energy-related financial assistance, contact Cyanergy.
Clean Energy Finance Corporation (CEFC)
The CEFC is a government-backed organisation designed to boost investment in the clean energy sector. It provides financing solutions to help businesses and consumers transition to energy-efficient technologies.
CEFC programs support small businesses, manufacturers, agricultural enterprises, and commercial properties in adopting clean energy solutions. Funding is also available through co-financing partnerships with other organisations.
CSIRO Kick-Start
CSIRO Kick-Start supports innovative Australian start-ups and small businesses in their research and development (R&D) efforts. The program offers:
- Assistance in defining research objectives
- Access to expert CSIRO researchers
- Matched funding to expand or reduce the cost of R&D services
Tax Incentives for Businesses
Research and Development Tax Incentive (R&DTI)
Instant Asset Write-Off
The instant asset write-off allows small businesses to claim tax deductions upfront instead of depreciating assets over time.
From July 1, 2023, to June 30, 2024, small businesses with an annual turnover of less than $10 million could immediately deduct eligible assets costing under $20,000. This threshold is applied per asset, allowing multiple assets to be written off instantly.
On May 14, 2024, as part of the 2024–25 Budget, the government proposed extending the $20,000 instant asset write-off for another 12 months until June 30, 2025. However, this measure is still awaiting parliamentary approval.
Using Tax Incentives to Enhance Energy Efficiency
The Energy Efficiency Council has published a guide on leveraging tax incentives to improve energy efficiency.
The guide explains how businesses can benefit from energy upgrades and outlines tax incentives that make these investments more cost-effective. It also includes real-world examples of how companies can apply these incentives.
State and Territory Government Grants and Support for Businesses
Australian Capital Territory (ACT)
The Sustainable Business Program offers rebates to small and medium businesses in the ACT for energy-saving upgrades, such as better heating, cooling, lighting, and refrigeration.
- Businesses can claim up to $10,000 (including GST).
- Rebates are only available for new upgrades (not ones that have already started).
- Eligibility rules apply.
New South Wales (NSW)
The NSW Government provides various programs, grants, and schemes to help businesses lower their energy use.
A popular option is Building Upgrade Finance, which allows businesses to get private funding for energy upgrades in non-strata commercial buildings. Repayments are made through the local council.
Queensland
The Queensland Government offers several programs to help businesses save energy:
Business Energy Savers Program: This program provides free energy audits for agricultural and large businesses and funding for energy efficiency upgrades.
South Australia
Victoria
Sustainability Victoria provides businesses with tools and expert advice to reduce costs and improve efficiency by saving energy and materials.
Their Energy Upgrades Tool helps businesses find funding options and calculate potential savings.
Tasmania
The Tasmanian Government has multiple grants and programs to help businesses cut energy costs and invest in sustainability.
Business Energy Efficiency Scheme helps businesses that use over 150 MWh of electricity annually by supporting financing costs for energy-saving projects.
Energy Saver Loan Scheme offers interest-free loans for purchasing and installing energy-efficient products. These loans have no setup or account-keeping fees, but late payment fees may apply.
Mandatory Energy Efficiency and Renewable Energy Schemes
Some businesses, mainly energy retailers, must meet specific energy efficiency or renewable energy targets under mandatory obligation schemes. These programs often allow companies to buy and trade certificates to meet their targets.
The schemes encourage businesses to invest in clean energy by offering financial benefits and long-term savings from reduced energy use and lower emissions.
National Scheme
Businesses that generate renewable energy on-site may qualify for Large-Scale Generation Certificates (LGCs) under the Large-Scale Renewable Energy Target (LRET) Scheme.
- LGCs can be sold or traded to energy retailers.
- To be eligible, companies must generate electricity from approved renewable sources and feed it into the grid.
Australian Capital Territory (ACT)
The Energy Efficiency Improvement Scheme (EEIS) helps maintain progress on energy-saving goals, ensuring affordable electricity and gas savings. It also aligns the ACT’s energy regulations with those of other states.
New South Wales (NSW)
The Energy Saving Scheme (ESS) provides financial rewards for businesses that reduce electricity use or improve energy efficiency.
Energy retailers must obtain Energy Savings Certificates based on the amount of carbon dioxide emissions reduced.
South Australia (SA)
Victoria (VIC)
The Victorian Energy Upgrades (VEU) Registry is an online system.
- VEU manages Victorian Energy Efficiency Certificates (VEECs) for businesses.
- It approves new products for energy efficiency programs.
- It tracks the ownership and status of certificates.
Rebates and Assistance
Other Energy Financing Options
Environmental Upgrade Finance (EUF) / Building Upgrade Finance (BUF)
- External financiers cover the cost of energy-efficient building upgrades.
- Businesses repay the loan through a council levy, which can be passed on to tenants.
- If the property is sold, the payments remain tied to the building.
This finance model is available in NSW, South Australia, and Victoria. Details are on the Building Upgrade Finance website.
Energy Performance Contracts (EPCs)
- Energy service companies assess a building’s energy-saving potential, finance the upgrades, and guarantee lower energy bills.
- The cost of upgrades is repaid through the energy savings.
- This model benefits tenants who save on energy bills without the building owner paying upfront costs.
Loan Financing
Leasing
On-Bill Financing
The energy provider covers the cost of new energy-efficient equipment. Once payments are complete, businesses repay through monthly power bills and ownership transfers. Repayments are often equal to or lower than the energy cost savings achieved.
Contact Cyanergy for more details and talk to an expert!
