Funding for energy efficiency and electrification upgrades for local governments

The Community Energy Upgrades program will co-fund energy efficiency and electrification upgrades for local governments to deliver reduced energy bills and emissions from local government owned and/or operated facilities.

The Community Energy Upgrades Fund will deliver $100 million over 2 funding rounds and will run over 3 years from 2024-25. The program will co-fund energy efficiency and electrification upgrades for local governments to deliver reduced energy bills and emissions from local government owned and/or operated facilities. The program will contribute to Australia meeting its emission reduction targets of 43 percent by 2030, net zero emissions by 2050, and support 82% renewable electricity generation by 2030. It will also support the Commonwealth-led National Energy Performance Strategy (NEPS).

The objectives of the program are to support:

• the Government’s broader efforts to reduce emissions and improve energy performance and contribute to Australia meeting its emission reduction targets of 43 percent by 2030, Net-Zero emissions by 2050 and 82% renewable electricity generation by 2030
• local governments to decarbonise their operations and reduce energy bills through energy efficiency and load flexibility upgrades and electrification of their facilities
• the improvement in energy performance necessary to utilise renewable electricity more easily and improve system reliability.

The intended outcomes of the program are:

• reduced energy bills and emissions from local government owned and/or operated facilities
• installed energy efficiency, load flexibility and electrification technology that is commercially available
• improved capability of local governments and the wider community to implement energy upgrades and electrification projects in their facilities
• increased capacity of domestic supply chains and labour force to support significant future investment in energy efficiency upgrades
• improved workforce skills in delivering and operating energy transition projects.

Applicants must contribute at least 50% of the agreed eligible project costs.

Projects must be completed by 31 March 2027.

You must not commence your project until you execute a grant agreement with the Commonwealth.