Funding for energy efficiency and electrification upgrades for local governments

Community Energy Upgrades Fund Round 2

The Community Energy Upgrades program will co-fund energy efficiency and electrification upgrades for local governments to deliver reduced energy bills and emissions from local government owned and/or operated facilities.

What do you get?

Grants between $25,000 and $2,500,000 to cover up to 50% of eligible expenditure.

Who is this for?

Local government bodies.

About the program

The Community Energy Upgrades Fund Round 2 will provide matched funding of up to $2.5 million of eligible expenditure for energy efficiency and electrification upgrades for local governments to deliver reduced energy bills and emissions from local government-owned and/or operated facilities. The program will also support the Commonwealth led National Energy Performance Strategy (NEPS).

The objectives of the program are to support:

  • the Government’s broader efforts to reduce emissions and improve energy performance, and contribute to Australia meeting its emission reduction targets of 43 percent by 2030, Net-Zero emissions by 2050, and 82% renewable electricity generation by 2030
  • local governments to decarbonise their operations and reduce energy bills through energy efficiency and load flexibility upgrades, and electrification of their existing facilities
  • the improvement in energy performance necessary to more easily utilise renewable electricity and improve system reliability.

The intended outcomes of the program are:

  • reduced energy bills and emissions from local government-owned and/or operated facilities
  • installed energy efficiency, load flexibility and electrification technology that is commercially available
  • improved capability of local governments and the wider community to implement energy upgrades and electrification projects in their existing facilities
  • increased capacity of domestic supply chains and labour force to support significant future investment in energy efficiency upgrades
  • improved workforce skills in delivering and operating energy transition projects.

The program will deliver $100 million over 2 funding rounds and will run over 4 years from 2024-2025 to 2027-28.

Check if you can apply

You can apply if you meet the eligibility criteria. The eligibility criteria are a set of rules that describe who we can consider for this grant. You can apply if you:

  • are an eligible entity
  • have an eligible project
  • have eligible expenditure.

The rules are in the grant opportunity guidelines.

Closing date: Friday 13 June 2025

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Craig is a mechanical engineer with 30 years’ experience including more than fifteen years’ assisting organisations manage energy, greenhouse gas…

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