The round 2 South Australian Small Business Energy Efficiency Grant was launched on the 27th of August as part of the $154 million Economic Recovery Fund (ERF) by the Malinauskas SA Government. The goal of this initiative is to help small businesses reduce their energy costs through grants ranging from $2,500 to $50,000. These grants are available until November 29th or until funds run out. They are aimed at supporting energy-efficient upgrades, such as installing solar panels, battery systems, heat pumps or energy-efficient appliances, as well as making improvements to building insulation and HVAC systems.
The program was introduced with the broader objective of reducing energy bills and encouraging sustainable business practices. As of 2024, the South Australian government has allocated $20 million specifically for this round of grants, aiming to help around 8,000 small businesses and not-for-profit organisations.
This detailed guide from Solar Choice provides everything you need to know about the small business grants available in south Australia, including details on the application processes, eligibility criteria, types of supported projects, and expert tips on how to maximise the benefits of the grant for your business.
Grant Overview
Total Funding Available: $20 million allocated for the 2024-2025 funding round.
Grant Amounts: Ranges between $2,500 and $50,000 per eligible business, depending on the project size and energy efficiency improvements proposed.
Applicant Contribution: A 50% co-contribution from the business is required, meaning businesses must match the grant funds dollar-for-dollar for their energy-efficient upgrades.
Application Deadline: Applications are open until November 29, 2024, or until the allocated funds are fully distributed.
Administered by: The Office for Small and Family Business, part of the South Australian Government.
Why This Grant Matters
As energy prices continue to soar, small businesses are feeling the pinch. This grant not only offers financial relief but also aligns with Australia’s sustainability goals. By incentivising small business energy-efficient upgrades, the South Australian government is fostering a more resilient and environmentally conscious business sector.
Attributable to Stephen Mullighan on round two of the ERF
Eligibility Criteria: Who Can Apply?
To be eligible for the Small Business Grant, your business must meet the following criteria:
Have a valid Australian Business Number (ABN)
Be registered for GST (with exceptions for some not-for-profits)
Be located and operating in South Australia
Own or lease the business premises where upgrades will occur
Be able to match at least 50% of the project cost
Must either:
Be a small business electricity customer consuming less than 160MWh per year, or
Have an Australia-wide grouped payroll of less than $1.5 million in 2023-24
Additional Notes
Not-for-Profit Organizations: Must provide the most recent lodged tax return showing turnover above $75,000 (if not registered for GST).
Embedded Networks: Eligible if payroll is under $1.5 million.
Public Companies: Not eligible for the grant.
Previous Funding: Ineligible if you have received state funding for the same project.
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What’s Covered: Eligible Projects and Equipment
The grant supports a broad range of energy-efficient upgrades, which include:
1. Power Supply and Generation
Battery storage systems
Solar panels with accompanying storage
Voltage optimization devices
2. Lighting and Electrical
LED lighting upgrades
Automatic lighting controls
Motion sensors for lighting
Smart power strips
3. Energy-Efficient Appliances (4-Star Rating or Better)
Air conditioners
Refrigerators and freezers
Pool pumps
Dishwashers and laundry equipment
4. Heating, Cooling, and Refrigeration
HVAC system upgrades
Refrigeration controls
Heat pump systems
Walk-in refrigerator upgrades
5. Water Heating
Heat pump or solar hot water systems
Pool heating systems
Hot water system insulation
6. Motors, Pumps, Fans, and Compressors
High-efficiency motors
Variable speed drive units
7. Building Upgrades
Improved insulation (roof, walls, ceiling)
External window shading
Draught-proofing and weather stripping
Energy-efficient doors and windows
8. Process Automation, Controls, and Optimization
Automated energy monitoring systems
Building Energy Management Systems (BEMS)
IoT smart building technology for energy management
The Application Process: A Step-by-Step Guide
Step 1: Review Eligibility and Plan Your Project
Verify that your business meets eligibility criteria.
Identify the most suitable energy-efficient upgrades for your business needs.
Consider conducting an energy audit for detailed insight into potential energy savings.
Step 2: Gather Required Documentation
Copies of energy bills for the last 12 months.
Quotes for proposed equipment or services.
Proof of ability to match the grant funding (e.g., financial statements).
Provide detailed information about your business and the proposed project.
Submit quotes and financial evidence along with energy consumption details.
Step 4: Await Approval
The Office for Small and Family Business will review your application and may request additional information.
Upon approval, you will receive a Grant Agreement and Acceptance Form.
Step 5: Accept the Grant Agreement
Review and accept the grant agreement within 14 calendar days to proceed.
Step 6: Implement Your Project
Complete all purchases and installations within 6 months.
Work must be performed by licensed professionals where required.
Step 7: Submit for Reimbursement
Submit valid invoices, proof of payment, and Certificates of Compliance (where applicable).
Reimbursement is processed within 15 days.
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Maximising the Grant’s Potential: Expert Tips
1. Conduct a Comprehensive Energy Audit
Before applying, invest in an energy audit to identify the most impactful upgrades for your business. This ensures you’re maximising energy savings and getting the best return on investment.
2. Focus on High-Impact Projects
Use the Energy Consumption Reduction Calculator provided by the government to assess which upgrades will provide the greatest energy savings relative to cost.
3. Leverage Complementary Technologies
Consider how different energy-efficient technologies can work together. For example, combining LED lighting upgrades with smart controls can yield greater savings than either upgrade alone.
4. Plan for Future Growth
Choose upgrades that will accommodate potential business expansion or increased energy needs. This forward-thinking approach ensures your investments will remain relevant for years to comes.
The Bigger Picture: Economic and Environmental Impact
This grant program is more than just financial assistance; it’s a strategic move towards a more sustainable and competitive business landscape in South Australia. By reducing energy costs, businesses can redirect resources towards growth and innovation. Moreover, the collective reduction in energy consumption contributes significantly to the state’s environmental goals.
Conclusion: Investing in Your Business’s Future
The South Australian Small Business Energy Efficiency Grant is more than just a funding opportunity—it’s a long-term investment in your business’s efficiency, competitiveness, and sustainability. By planning strategically and utilising the available resources, you can reduce costs, enhance operations, and contribute to a more sustainable South Australia.
Remember, funds are limited and applications are processed on a first-come, first-served basis. Act now to secure your business’s energy-efficient future.
If my project costs $200,000, can I still apply for the grant?
Yes, you can still apply for the grant even if your project costs exceed the maximum grant amount. However, the government will only contribute up to $50,000, which is the maximum grant available under this program. For a $200,000 project, you would need to cover $150,000 yourself, and the grant would provide the remaining $50,000. Remember, the grant is designed to cover 50% of eligible costs up to the $50,000 cap.
What is the Economic Recovery Fund?
The Economic Recovery Fund is a $154.2 million initiative established by the South Australian Government to assist businesses and industries in the state. The Small Business Energy Efficiency Grants are part of Round 2 of this fund, specifically aimed at helping small businesses reduce their energy costs.
When do applications open and close?
Applications open on Tuesday, August 27, 2024, and close at 5pm (ACDT) on Friday, November 29, 2024, or when funding is exhausted, whichever occurs sooner. As grants are allocated on a first-come, first-served basis, it’s advisable to apply early.
How much funding can my business apply for?
The total funding available under Round 2 is $20 million, with grants ranging from $2,500 to a maximum of $50,000 per eligible business. The government will provide up to 50% matched funding through reimbursement of eligible business expenditure from $5,000 (excluding GST and inclusive of the business’ financial contribution).
For example:
If you spend $5,000, you may be eligible for a grant of $2,500.
If you spend $100,000, you may be eligible for the maximum grant of $50,000.
If you spend $120,000, you may be eligible for the maximum grant of $50,000.
How long will my application take to process?
The Office for Small and Family Business (OSFB) will assess applications in the order they are received. They aim to assess each application within 10 business days, subject to any additional information required or high volumes of applications. Applications including items from the “Other unique projects/equipment” category may take longer due to the need for independent third-party verification.
What documentation do I need for my application?
In addition to your business information, you’ll need:
At least one quote from a third-party provider for works up to $15,000.
Two quotes for works or costs above $15,000.
Estimated savings calculated using the Energy Consumption Reduction Calculator provided by the program.
When can my project commence and when does it need to be completed?
Projects may commence after you accept the Grant Agreement and Acceptance Form issued by the OSFB. You’ll have 6 months from the date of this form to complete purchases, installations, and apply for reimbursement.
Can my business purchase solar panels?
Yes, you can purchase solar panels, but they must be accompanied by battery storage in your application.
How long will it take to receive the funding once I apply for reimbursement?
Once you provide satisfactory documentation through the reimbursement form, payment can be expected within 15 days into your nominated business bank account.
Are home-based businesses eligible?
No, home-based businesses operating primarily from the owner’s or an employee’s residence are not eligible for this grant program.
Does the grant amount include or exclude GST?
All grant amounts exclude GST.
Can I still apply if I receive grant funding from other government programs?
You are eligible to apply as long as the project you submit hasn’t been awarded funding through another State Government financial assistance program. Funding from Commonwealth, local, or other government programs is acceptable but won’t count towards your matched contribution. You must disclose all government funding received in the past 2 years and any pending applications in your application form.
What is considered eligible matched funding for my contribution?
Eligible co-contribution funds exclude:
Contributions made ‘in-kind’
Commonwealth, state, local, or other government funding
Any activities funded from other sources such as grants or concessions
Expenditure incurred prior to the acceptance of a grant agreement
Project development costs such as feasibility studies and consultant reports
General overhead costs, e.g., wages, rent, vehicles, furniture
Financing, interest or insurance costs
Any costs of preparing an application to this program
Remember, it’s always best to refer to the official program guidelines or contact the OSFB for detailed information.
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With half a decade experience in the solar energy industry, specialising in business strategy and marketing for solar companies. He has worked with top solar distributors in Canada and now collaborates with solar manufacturers and installers across Australia via Solar Choice, Australia's leading solar comparison and installation platform. With degrees in business technology, science, and marketing, James combines in-depth market insights with technical knowledge, positioning him as a trusted authority in renewable energy.
