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EEG Aircon Grant: Government Support for Energy-Efficient Air-Conditioning Systems

Key Takeaways:

What You Need to Know About the EEG Aircon Grant?

The grant helps food and retail businesses offset part of the cost of installing approved high-efficiency air-conditioning systems.
It focuses on approved 5-tick units that improve energy efficiency without affecting daily operations.
Eligibility applies to SMEs in Food Manufacturing, Food Services, and Retail, subject to prevailing government criteria.
Businesses must select equipment from the approved list under the grant before applying.

Introduction

Air conditioning systems play a part in daily operations for food and retail businesses in Singapore. From maintaining comfort for customers to supporting kitchen and storage environments, cooling systems are a necessary but ongoing cost.

The Energy Efficiency Grant, or the EEG aircon grant, was introduced to help eligible small and medium enterprises manage this expense by supporting the adoption of approved energy-efficient air-conditioning systems.

This article looks at how the grant works and what business owners should consider when planning compliant and cost-conscious upgrades.

What Is the EEG Aircon Grant?

Upgrading air-conditioning systems often involves considerable cost for food and retail businesses. The grant provides support by offsetting a portion of the cost associated with installing high-efficiency systems and supporting eligible companies with partial funding for high-efficiency air conditioning installation in Singapore.

The purpose of the grant is to encourage businesses to install approved 5-tick systems that improve energy efficiency, without disrupting operational requirements. For cafes, restaurants, central kitchens, and retail outlets, this funding helps lower initial costs associated with upgrading to an energy-saving air conditioner in Singapore.

What are the Coverage Amount and Grant Tiers?

1. Base Tier

Support cap: Up to S$30,000 per company.

Qualifying equipment: Must be from the pre-approved energy-efficient equipment list.

Support rate:

Up to 70% of equipment cost for SMEs (Small and Medium Enterprises)
Up to 30% of equipment cost for non-SMEs

2. Advanced Tier

Support cap: Up to S$350,000 per company (combined with Base Tier support).

Qualifying equipment: Equipment need not be pre-approved but must demonstrate lifetime energy savings of at least 350 tonnes of carbon reduction.

Support rate: Same SME vs non-SME rates as Base Tier, but grant amount is determined by whichever is lower.

Who Can Apply?

Eligibility for this air conditioning grant is tied to both business size and industry classification. Small and medium enterprises operating in selected sectors may qualify, subject to the latest government guidelines.

The grant currently applies to businesses within the following sectors:

Food Manufacturing
Food Services
Retail

Applicants should review the full criteria published by Enterprise Singapore to confirm eligibility before proceeding. Approval is assessed based on business profile, equipment selection, and compliance with grant requirements.

How to Prepare Before Submitting an Application

Preparation plays an important role in a smooth application process. Businesses are required to select equipment models that fall within the list of approved systems under the Energy Efficiency Grant.

Engaging a qualified aircon contractor early allows you to assess your premises, cooling needs, and suitability of approved 5-tick units. This step ensures the selected system aligns with operational demands while meeting grant conditions for the installation of energy efficiency air conditioners.

Once the appropriate model is identified, a formal quotation can be prepared to support the grant application.

How to Apply

1. Log in and Prepare Your Profile

Log into the Business Grants Portal (BGP) and go to the “Applications” tab.
Update your company profile and ensure details (e.g., ACRA info) are accurate.

2. Start a New Grant Application

Go to “My Grants”, then click “Get new grant.”
Select the sector that best describes your business (e.g., Food & Beverages, Manufacturing, Retail).
Choose Energy Efficiency Grant and click “Apply.”

3. Complete the Eligibility Section

Confirm you meet the eligibility criteria as you proceed through the form.
This means acknowledging that your company and project qualify under the EEG Base Tier rules.

4. Fill in Contact and Deployment Details

Enter details for your main contact person and the person who will receive the Letter of Offer.
Provide information about where the energy-efficient equipment will be deployed.

5. Enter Equipment Information

Choose the brand and model of the energy-efficient equipment from the pre-approved list.
Provide the vendor’s details and upload mandatory supporting documents (e.g., quotation, tenancy agreement for deployment location).

6. Enter Cost Details

Fill in the cost of the equipment you intend to purchase.
Make sure costs match the supporting quotation you uploaded.

7. Describe Business Impact

Briefly explain the impact of adopting energy-efficient equipment, such as energy savings and business benefits.

8. Declare and Submit

Review your entire application.
Complete the declaration section and submit the application for processing.

Application Window and Grant Period

According to official guidance, applications for the EEG aircon grant are open from 1 April 2024 to 31 March 2026, subject to the availability of funds. Businesses planning upgrades should factor in equipment lead time, installation scheduling, and post-installation requirements.

Why the EEG Aircon Grant Matters for Business Owners

The grant reduces the financial barrier to upgrading cooling systems while encouraging responsible energy use. For businesses operating long hours in warm environments, efficient air-conditioning systems help contribute to more predictable operating costs and better working environments.

With over three decades of experience, Newway has been supporting residential and commercial customers since 1987. Our aircon servicing in Singapore is guided by a practical understanding of each property’s operating needs, from routine servicing to troubleshooting.

Get a quotation from us to support your EEG application.

Disclaimer: This blog post and/or Newway does not take responsibility for the approval or rejection of any Energy Efficiency Grant application. Readers should refer to the official GoBusiness and Enterprise Singapore websites for the most up-to-date eligibility criteria and policies issued by the relevant authorities.

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