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).
Step 3: Complete the Online Application
- Access the application form on the Office for Small and Family Business website.
- 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.
For more information and to start your application, visit the Small Business Energy Efficiency Grant page.
For more you can Download the Round 2 Energy Efficiency Grant Guidelines PDF
Frequently Asked Questions
If my project costs $200,000, can I still apply for the grant?
What is the Economic Recovery Fund?
When do applications open and close?
How much funding can my business apply for?
How long will my application take to process?
What documentation do I need for my application?
When can my project commence and when does it need to be completed?
Can my business purchase solar panels?
How long will it take to receive the funding once I apply for reimbursement?
Are home-based businesses eligible?
Does the grant amount include or exclude GST?
Can I still apply if I receive grant funding from other government programs?
What is considered eligible matched funding for my contribution?
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