Several grant and funding opportunities are currently available for businesses looking to advance their decarbonisation and reduce their exposure to energy costs.
Federal
Powering the Regions Industrial Transformation Stream
The Powering the Regions Industrial Transformation Stream is part of efforts to reduce emissions of carbon dioxide and other greenhouse gases from industry, as part of the national journey to net zero emissions. Round 3 is now open via the Australian Renewable Energy Agency (ARENA), closing when its $180 million in funding is exhausted.
This program is for existing industrial facilities in regional Australia and round 3 of the funding is focused on innovation in industrial decarbonisation, such as first of a kind technologies, and advancing commercial deployment of technologies technically proven but not yet commercially viable, or where limited adoption has occurred in Australia due to non-technical barriers.
For more information on scope and the application process, visit the ARENA website here (https://arena.gov.au/funding/powering-the-regions-industrial-transformation-stream/).
NSW
Business Decarbonisation Program: Heat Pump Feasibility Grant
Heat pumps can provide low- and medium-grade industrial process heat, as well as space and water heating, using ambient energy with high efficiency.
The Heat Pump Feasibility Grant is now open via NSW DDCCEW, closing Tuesday, 31 March 2026 at 5 pm (AEDT) or when funding is exhausted.
The grant covers up to $30,000 to identify if a heat pump is suitable for your site and develop a detailed feasibility study.
To be eligible the project needs to be delivered at a NSW site address, and use between 5,000 and 100,000 gigajoules of gas per year at the site, excluding transport fuel.
For more information on eligibility criteria, funding guidelines and to apply, visit the NSW Energy website here (https://www.energy.nsw.gov.au/business-and-industry/programs-grants-and-schemes/supporting-your-business-decarbonise/heat-pump-feasibility-grant).
Business Decarbonisation Program: metering and monitoring grants
Three grants are offered by NSW DCCEEW:
Up to $50,000 to improve energy performance through effective use of metering data, including support for planning, access to monitoring and analytics software, data integration, expert guidance and capability development.
Applications close 5pm AEDT 31 March 2026, or when funding is exhausted.
For more information on eligibility and to apply see the NSW Energy website here (https://www.energy.nsw.gov.au/business-and-industry/programs-grants-and-schemes/supporting-your-business-decarbonise/metering-and-monitoring).
Energy certificate schemes
The NSW Government has two schemes to support businesses and other energy users to improve their energy efficiency and smart energy management, by issuing valuable credits for these activities. Covered upgrades directly reduce energy costs for participating businesses, but also provide wider benefits by reducing pressure on electricity supply. These can include standardised common upgrade methods, or site-specific tailored upgrades.
The Energy Security Safeguard supports upgrades that reduce total usage of electricity or gas.
The Peak Demand Reduction Scheme focusses on upgrades that reduce electricity demand during peak times only.
For more information on the Schemes and how to access them, please visit the NSW Energy website here (https://www.energy.nsw.gov.au/nsw-plans-and-progress/regulation-and-policy/energy-security-safeguard/energy-certificate-schemes).
SA
Retailer Energy Productivity Scheme (REPS)
The Essential Service Commission SA (ESCOSA) has a program to help businesses to save energy by increasing energy productivity. The REPS scheme has a list of providers that cover a broad range of activities under the program, including lighting, appliances, heating and cooling, water heating, and insulation and building sealing.
For more information on eligible activities and providers, see the ESCOSA website here (https://www.escosa.sa.gov.au/industry/reps/overview/reps).
VIC
Victorian Energy Upgrades (VEU) program
The VEU supports businesses and other energy users to improve their energy efficiency, by issuing valuable credits for these activities. It is administered by the Victorian Essential Services Commission (ESC).
Businesses can access the VEU by undertaking eligible activities to improve electricity or gas efficiency, or to switch from gas to electricity. There are standardised activities, where credits are deemed and issued upfront; and tailored site-specific methods where credits are issued on performance. All activities need to be undertaken with a provider accredited to participate in the scheme.
Importantly regarding the installation of Solar PV systems on commercial premises, the government has recently changed the system to enable upfront deemed credits.
For more information on the VEU and eligible activities, see the ESC website here (https://www.esc.vic.gov.au/victorian-energy-upgrades/about-victorian-energy-upgrades-program) and the information on accredited providers here (https://veu.esc.vic.gov.au/vpr/s/public-registry)
Need help with decarbonisation?
To make the most of the financial support programs above, you need to know what your upgrade options are. Australian Industry Group’s Decarbonisation Unit works closely with members to navigate the complexities of the energy transition and achieve their decarbonisation goals. Our support spans strategic energy assessments, carbon and emissions accounting, evaluating technology and fuel‑switching options, dispatchable energy deployment, improving energy management practices, and helping businesses engage effectively with electricity markets and service providers.
We assist members across multiple states to identify practical pathways to reduce emissions, strengthen resilience, and improve operational efficiency, whether through process optimisation, electrification, or access to relevant funding and market opportunities.
For members seeking to manage rising energy costs, meet emerging compliance obligations under mandatory climate reporting, or find new value through energy and capacity markets, our team provides end‑to‑end support from feasibility through to implementation and ongoing market participation.
To Connect with our Decarbonisation Unit, contact our Principal Consultant – Gabor Hernadi (gabor.hernadi@australianindustrygroup.com.au).
Tennant Reed is Director - Climate Change and Energy at Australian Industry Group.
He has worked on these issues since 2008, advising Australian Industry Group’s Leaders’ Group on Energy and Climate Policy; coordinating joint research and advocacy with wider energy stakeholders; facilitating the Australian Climate Roundtable; developing reports on energy prices, carbon border adjustments and business energy use; reviewing emissions targets for the state of Victoria and closely observing international climate negotiations.
Molly Knox joined the Ai Group Industry Development and Policy team in 2018. She has previously been editor for the Ai Group Exporters Guide, is heavily involved with circular economy and waste issues, and also acts as an Advisor in the Product Stewardship Centre of Excellence.
