Grants of up to $2.5 million to help local governments decarbonise their operations by upgrading existing facilities for improved energy efficiency, electrification, and load flexibility.
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What is the Community Energy Upgrades Fund?
The Community Energy Upgrades Fund Round 2 is a targeted grant initiative designed to help local governments decarbonise their operations by upgrading existing facilities for improved energy efficiency, electrification, and load flexibility. This programme supports reduced energy bills and lower greenhouse gas emissions in line with Australia’s national emissions reduction targets and renewable energy ambitions.
The fund is part of a broader $100 million programme delivered over two rounds, with up to $50 million available in Round 2.
Community Energy Upgrades Fund level of support
Grants:
- Minimum amount: $25,000
- Maximum amount: $2,500,000
Co-contribution:
- Applicants must contribute 50% of the eligible expenditure, as the grant covers up to 50% of the total eligible costs.
Community Energy Upgrades Fund important dates
- Closing Date: Friday, 13 June 2025 at 5:00pm AEST
- Project Completion Deadline: All project activities must be completed by 31 March 2028
- Project Commencement: Projects are expected to start around December 2025, following the execution of the grant agreement
- Register your interest with GrantHelper
Community Energy Upgrades Fund objectives
The main objectives of this grant are to:
- Reduce Energy Bills and Emissions: Facilitate energy efficiency, electrification, and load flexibility upgrades that lower operational costs and greenhouse gas emissions for local government facilities.
- Support Decarbonisation: Assist local governments in their transition towards net-zero emissions by 2050 while contributing to a 43% emissions reduction by 2030 and 82% renewable electricity generation by 2030.
- Enhance System Reliability: Improve energy performance to better integrate renewable energy sources and bolster energy system reliability.
Projects and expenditure eligible for Community Energy Upgrades Fund support
Eligible projects must be aimed at:
- Delivering energy efficiency upgrades, electrification improvements, or load flexibility enhancements using commercially available technologies.
- Achieving measurable reductions in energy costs and emissions for existing local government facilities or operations.
- Having a minimum of $50,000 in eligible expenditure and a maximum project duration of 24 months (to be completed by 31 March 2028).
Ineligible Expenditure:
The grant funds cannot be used for:
- Energy upgrades using fuels other than electricity or solar thermal, including gas or fossil fuel efficiency projects.
- Front of meter projects (new energy generation or storage facilities rather than upgrades to existing local government infrastructure).
- The purchase of electric vehicles (although EV charging infrastructure is eligible).
- Remote area power supplies and costs associated with compliance with white or small-scale technology certificates.
- Administration costs, research (including feasibility studies and energy audits), costs incurred prior to executing the grant agreement, in-kind contributions, financing costs, and capital expenditure for non-project assets (such as office furniture or unrelated ICT equipment).
Other Community Energy Upgrades Fund important details that you will need to know
Organisations eligible for Community Energy Upgrades Fund support
Eligible organisations include:
- Local Government Bodies: Entities with an active Australian Business Number (ABN) that are recognised as local government bodies.
- Joint Local Government Bodies: Organisations formed by local governments for collaborative initiatives (as defined in the guidelines).
Exclusions:
Applicants are not eligible if they:
- Are listed on the National Redress Scheme’s website as not having joined or intending to join the scheme.
- Are an employer of 100 or more employees that has not complied with the Workplace Gender Equality Act 2012.
- Have previously been awarded funding in Community Energy Upgrades Fund Round 1 or are part of a separate joint local government application in Round 2.
See the guidelines for full details of organisational requirements.
Community Energy Upgrades Fund assessment criteria
Applicants’ proposals will be assessed against the following criteria:
Criterion 1: Emission Reduction and Load Flexibility (30%)
- Describe how your project will reduce greenhouse gas emissions and deliver load flexibility. Include detailed calculations for energy savings and emissions reductions, utilising tools like the abatement calculator.
Criterion 2: Wider Impact (20%)
- Demonstrate the broader benefits of your project, such as building capacity within local government, facilitating knowledge sharing, and setting an example for similar projects across regions.
Criterion 3: Capacity, Capability, and Resources (30%)
- Provide a comprehensive project plan that details technical feasibility, personnel, resources, and risk management. This should include a detailed budget and a clear timeline for project implementation.
Criterion 4: Economic and Social Benefits (20%)
- Outline the economic, social, and community benefits, and explain how your project remains viable without grant funding. Highlight any regional or broader impacts.
How do I get the Community Energy Upgrades Fund?
Check your eligibility: Ensure you’re an eligible organisation and that your project fits the program objectives and requirements.
Develop your project scope: Confirm costs, gather quotes, and identify any required approvals.
Compile your supporting documentation: Examples include a work plan and a detailed project budget.
Information to prepare for the Community Energy Upgrades Fund application
Before applying, ensure you have the following:
- A detailed project plan that addresses all assessment criteria.
- Evidence of eligible expenditure, including quotes and abatement calculator outputs.
- All mandatory attachments such as technical documentation, risk assessments, and financial records.
- A clear outline of your co-contribution, confirming that you can meet the 50% funding requirement for eligible costs.
See the guidelines for full details of information requirements.
Applying for the Community Energy Upgrades Fund
Submit your application via the online portal on business.gov.au.
Register your interest with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Community Energy Upgrades Fund resources
Is Your Business Eligible for This Government Grant?
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