The Albanese government has introduced a $62 million grants program designed to help small businesses become more energy efficient, ease pressure on their energy bills and reduce emissions.

There is $16 million available in the first round of the Energy Efficiency Grants for Small and Medium Enterprises program. Grant applications opened Monday 6 March and close Wednesday 19 April 2023, or until funds are exhausted. The second round of grants will be delivered next year.

Grants of between $10,000 and $25,000 will be available to SMEs in all industry sectors to enable them to take energy-saving measures such as installing tools to monitor energy use, upgrading or replacing existing air conditioners with high-efficiency units, or gas heating boilers with heat pumps.

The measures are in line with Business NSW’s/My Business Energy’s calls for increased investment into the energy efficiency of small businesses to reduce funding barriers.

The Business NSW report – Unfinished Business: Putting small business energy policy back on the table –  found that the business case for energy efficiency and future subsidy programs has become stronger as prices have risen. The report was supported by grant funding from Energy Consumers Australia. 

While the new energy efficiency grants are welcomed, more can still be done, especially on the support process for small businesses that may struggle with how they will implement new energy efficiency initiatives, said Anthony Cooper, My Business Executive Manager, Energy Programs.

“SMEs often don’t have the skills and expertise inside the business to manage the process of identifying what the energy efficiency or energy production activity might be,” Mr Cooper said.

“Secondly, they’ve got to fill out the form to apply for the grant, and that’s hard to navigate when you’ve got three customers at the counter, or you’re physically packing the boxes in the shed.

“While we applaud the measures, the fact that there’s no facilitation and support means that small businesses will likely miss out on these grants because they’ll lack the capacity, unlike bigger businesses.”

The report also found that funding and prioritisation were the two most commonly cited reasons for not investing in energy-efficient technologies across the board. Time was the next most cited, with a third of businesses struggling to find time to identify the specific needs of the business. For newer or more niche technologies, expertise and skills requirements are more likely to be cited as a barrier.

Mr Cooper said that when it comes to addressing energy-efficient options for SMEs, identifying what those needs are is one of the most important steps.

For businesses that are growing, or aspiring to grow, a focus on efficiency read as simply cutting demand does not meet their needs. They want to know how replacing equipment can help them produce more, waste less, or make better products. This implies a shift from centring the discussion on energy to the business’s products and its bottom line.

“A business can get a bill with a big number on it. So, it’s about 'where do I start, and what do I need to do to make that number smaller'. If you are a business owner, you may not be aware of how your business actually uses energy. Is it a particular machine or process, the lights, or is it the air conditioner?” Mr Cooper said.

“This also reinforces why having another business energy advice program is so necessary. It’s about helping businesses navigate from identification of opportunity through to partnering with someone who can get the job done and solve the business’s energy needs.”

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