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Small business energy incentives to help you save

Many small businesses are looking for initiatives to help increase their energy efficiency, reduce their energy bills and make a positive impact on the planet. Here’s where you can start.
6 min read
Published on 12 Sep, 2024

Key Takeaways

  • Getting a rebate or discount on energy efficient upgrades is a way small businesses can save while improving their sustainability.
  • There are some Australian Government tax incentives that could make energy efficiency switches more affordable.
  • Once you determine your priorities and understand your options, there’s a range of support out there to help you transition to becoming a more sustainable business.

Whether you’re trying to build a more energy efficient business or looking to reduce your energy costs, there are a range of government initiatives that could help you on your journey. These include grants, funding programs, rebates and tax incentives. 

Start with an energy audit

Government backed incentives to go green can help you build a roadmap toward a more energy efficient business future. Whichever options you choose, it's worth conducting an energy efficiency assessment and a energy audit before setting any solid plans in motion. Depending on the size of your business, this can be done in house or by using an established energy services company to recommend cost-effective improvements.

Once you understand your needs, you can look for the relevant incentives or financial assistance available. This can make the changes you want to make that little bit easier or more cost effective, easing the strain on your cash flow.

Get some great ideas from the team at Corryong IGA, who halved their energy usage after completing their own energy audit.


State-based rebates and discounts for sustainable upgrades

Getting a rebate or discount on energy efficient upgrades is one-way small businesses can save while improving their sustainability. You just need to decide what’s most important to you, what you can afford and what could most impact your energy efficiency. You could even create a plan to make changes over time.

  • NSW: Initiatives include discounts on solar battery installation, incentives to switch to an electric vehicle fleet and electricity grid feed-in tariffs. There are also discounts to upgrade equipment like furnaces, refrigeration, water heaters and lights for more energy efficient models.
  • ACT: The Sustainable Business Program provides support in the areas of energy, transport, waste and water. Businesses have access to a free onsite assessment and advice on ways to improve their energy efficiency, including transitioning off gas, installing solar panels and battery storage.
  • QLD: For Queensland businesses, there’s rebates for the purchase of energy-efficient equipment, PeakSmart air conditioners and zero emissions vehicles.
  • VIC: The Victorian Energy Upgrades (VEU) program gives businesses discounts and rebates on a range of energy-efficient products like hot water systems, dryers, lighting, heating and cooling and more.
  • SA: The City of Adelaide offers sustainability incentives including rebates on sustainable practices and technology. These can include solar PV systems, energy monitoring, appliance electrification, electric vehicle charging stations and they all offer discounts on business sustainability training.
  • WA: There’s zero emissions vehicle rebates and grants for businesses to co-fund the cost of an electric vehicle (EV) charging infrastructure.
  • TAS: The Energy Saver Loan Scheme provides interest-free loans to Tasmanian businesses on a range of energy efficient products.
  • NT: In the NT, businesses can benefit from electricity feed-in tariffs and electric vehicle charger grants. 

To find out what’s available in your state, head to energy.gov.au. 

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National Tax incentives

There are also some Australian Government tax incentives that could make energy efficiency switches more affordable. We’ve listed some here, but you can check out the Energy Efficiency Council’s tax incentives guide to find out how energy upgrades can benefit your business and explore specific tax incentives to make them more achievable.

  • The small business energy incentive has been introduced to help businesses improve energy efficiency and save on energy bills. 
  • The proposed extension of the temporary increase to the instant asset write-off from $1,000 to $20,000 could also help with the purchase of assets that improve energy efficiency. Small businesses with aggregated turnover of less than $10 million, can immediately deduct the full cost of eligible assets costing less than $20,000. The $20,000 threshold applies on a per asset basis, allowing small businesses to instantly write off multiple assets. If approved by parliament, the increase will be extended to 30 June 2025. 

If you’re looking to innovate in the sustainability space, the Research and Development Tax Incentive (R&DTI) is worth looking into. It provides tax offsets to encourage more Australian companies to invest in research and development. You can learn more about R&DTI by listening to this Business.gov.au podcast series or find out what kind of businesses have used it.

Once you determine your priorities and understand your options, there’s a range of support out there to help you transition to becoming a more sustainable business. And by making the switch, you might also save some dollars along the way. 

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