The Energy Efficiency Grant (EEG), a co-funding scheme to encourage businesses in the Food Services, Food Manufacturing and Retail sectors to invest in energy-efficient equipment, will be enhanced.
The EEG will be extended to non-SMEs, as well as additional business sectors - Manufacturing, Construction, Maritime, and Data Centres and their users. The grant quantum will be significantly increased to cater to companies which wish to make larger investments to improve energy efficiency (see Advanced Tier in Table 1 below).
The EEG is available to Singapore companies with (i) at least 30% local shareholding, (ii) at least one local employee, and (iii) group annual sales turnover of no more than $500 million.
Table 1 Summary of EEG Tiers of support
| Tier | Support Cap per Company | Qualifying Equipment | Support Rate (until 31 March 2026) |
| Basic Tier | Up to $30,000 | Pre-approved energy-efficient equipment 1 | Government will support 70% and 30% of pre-approved energy-efficient equipment costs for SMEs 2 and non-SMEs respectively |
| Advanced Tier (for selected sectors) | Up to $350,000 across Base and Advanced Tiers | Energy-efficient equipment need not be pre-approved, but must demonstrate energy savings above 350 tonnes lifetime carbon abatement | Grant quantum computed based on the lower of: (i) Support levels under the Base Tier; or (ii) Energy-efficient equipment’s expected lifetime carbon abatement. |
1 Pre-approved energy efficient equipment includes air-conditioner, clothes dryer, cooking hob, LED lighting, refrigerator and water heater.
2 SMEs are defined as enterprises with group annual sales of not more than $100 million or group employment size not exceeding 200 employees.
The changes to the scheme should be well-received by businesses, especially those in the extended sectors which are more likely heavy energy users. The additional support can help lower the barrier to making large capital investments on energy-efficient equipment. This is a great opportunity for businesses to invest in and secure a sustainable competitive edge.
It is also intended that the other existing grant schemes relating to energy-efficiency equipment be subsumed under the EEG eventually. This consolidation should help to simplify the grant administrative process and generate more interest to access the EEG.
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Irene Tai
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