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What is the Community Energy Upgrades Fund?
The Community Energy Upgrades Fund provides grants between $25,000 and $2,500,000 to local governments for energy efficiency and electrification upgrades in local government-owned and/or operated facilities.
Background
Launched as part of a strategic move to bolster Australia’s commitment to sustainable development, the Community Energy Upgrades Fund allocates $100 million across two funding rounds over three years (2024-2027). This initiative is aimed at assisting local governments in reducing energy bills and emissions, thereby contributing to Australia’s ambitious emission reduction targets of 43% by 2030 and net-zero by 2050, while supporting 82% renewable electricity generation by 2030.
The program will deliver $100 million over two rounds and will now run across four years, from 2024–2025 to 2027–2028. It also supports the Commonwealth-led National Energy Performance Strategy (NEPS).
Objectives
The objectives of the Community Energy Upgrades Fund are:
- To support the Australian Government’s efforts to meet its emission reduction targets through improved energy performance.
- To assist local governments in decarbonising their operations, reducing energy bills through energy efficiency, and load flexibility upgrades.
- To contribute to the improvement of energy performance, facilitating the transition to renewable electricity and enhancing system reliability.
Eligible Entities
Eligible Entities for the Community Energy Upgrades Fund are:
- have an Australian business number (ABN)
- Local Government Body
- Joint Local Government Body
You cannot apply if you:
- Were a successful applicant in Community Energy Upgrades Fund Round 1
- Are a member of a separate joint local government body application in Round 2
- Are on the National Redress Scheme’s list of Institutions that have not joined or indicated they will join the Scheme
- Employ 100 or more staff and are not compliant with the Workplace Gender Equality Act 2012
Eligible Expenditure
Eligible activities can include, but are not limited to:
- Newly purchased or pre-existing plant and equipment
- Hired/leased plant
- Constructed plant
- Labour expenditure and on-costs
- Contract expenditure
- Other eligible expenditure as defined in the grant agreement
Eligible Projects
You must complete your project by 31 March 2027. The maximum project length is 24 months. For Round 2, projects must be completed by 31 March 2028.
Your project must:
- be located in Australia
- be aimed at meeting the objectives of the grant opportunity, as outlined in Section 2 of the grant opportunity guidelines
- have at least $50,000 in eligible expenditure
- be aimed at energy efficiency and/or electrification and/or load flexibility upgrades that reduce costs and emissions for local
- government’s facilities or operations using commercially available technologies.
Timing
Applications for Round 2 are now open and will close on Friday, 13 June 2025, at 5:00 pm AEST.
More Information
News
The Federal Government announces Round 1 of the Community Energy Upgrades Fund, allocating $50 million to enhance energy efficiency in local government facilities. This initiative aims to lower emissions and energy costs, supporting Australia’s emission reduction targets. Grants from $25,000 to $2.5 million are open to local governments for energy upgrades, including electric vehicle infrastructure and renewable energy installations. Applications close on 30 April 2024.
