The Energy Efficiency Fund (E2F) was first started in 2017 and it supports businesses in the industrial sector, including small and medium enterprises (SMEs) to improve energy efficiency.
As of January 2022, 27 energy efficient technologies projects have been supported by E2F. Projects supported include retrofits of LED lighting, high efficiency air-conditioning systems, variable speed air compressors and boiler systems. These are estimated to have achieved annual carbon abatement of 1,600 tonnes (or taking about 500 cars off the road). This is a promising step for Singapore’s Green Plan.
To encourage more businesses to take up the grant (and advance Singapore’s green journey), NEA has enhanced the Energy Efficiency Fund (E2F). So, here’s how businesses can tap on E2F to reduce their electricity usage and increase energy efficiency.
Read Also: Open Electricity Market (OEM) For Businesses: Can You Switch And How Much Can You Save?
Energy Efficiency Fund (E2F) Will Support Up To 70% of Qualifying Costs Of Implementing Energy Efficient Technologies
Under E2F, up to 70% of qualifying costs for the adoption of energy efficient technologies will be supported. However, the actual grant amount will vary based on the carbon abatement achieved: higher carbon abatement will receive higher grant support.
This enhancement from the previous up to 50% grant support will apply to E2F applications received by NEA from 1 April 2022 onwards.
Types of qualifying costs include external manpower, equipment or technology and professional services. If the grant amount exceeds $100,000, the disbursement request must be audited by an external Certified Public Accountant (CPA) appointed by the company. The cost of engaging the accountant would be borne by the company.
There is no grant cap for implementing energy efficient technologies.
What Companies Are Eligible For Energy Efficiency Fund (E2F)?
To be eligible for E2F, the business must be Singapore-registered owners or operators of existing or proposed manufacturing facilities (SSIC code from 10XXX to 32XXX) with group annual sales turnover of less than $500 million.
The energy efficiency project must be implemented in a facility sited and operating in Singapore.
Read Also: What is Singapore Standard Industrial Classification (SSIC) Code And Why It Matters?
What Kind Of Energy Efficiency Projects Are Eligible?
According to NEA, projects must involve the installation and use of energy efficient equipment or technologies with proven track record of energy savings in an industrial facility. The project must result in measurable and verifiable energy savings. The characteristics of proven track record and measurable energy savings mean that this is not the time to invest into new, untested technologies or projects that are still in the stage of proof of concept.
Examples of eligible projects include:
- LED Lightings with efficacy of at least 100 lumens/watt
- Air-Conditioners, including Variable Refrigerant Flow (VRF) systems, listed as 4 to 5 ticks under NEA’s Energy Labelling Scheme
- Motors, registered as IE4 and above under NEA’s Minimum Energy Performance Standard
- Compressed Air System Dryers
- Chilled Water Systems, Air Handling Units, Refrigeration System
- Boiler System, Furnaces and Ovens, Heat Recovery System
The typical expected payback period for implementing such technologies is about 3 years for LED Lamps, 4.5 years for Central Chilled Water Systems and 3.5 years for Heat Recovery Systems.
Eligible Projects Need To Have Measurable And Verifiable Energy Savings
Applicants for E2F must submit a Measurement and verification (M&V) Plan and a M&V report before and after project implementation.
This will need to include details on:
- The M&V methodology to measure and verify the realised carbon abatement after implementation;
- Baseline and post-implementation energy performance measurements; and
- Carbon abatement calculations.
The M&V can also be done at a facility-level when the projects implemented are expected to reduce facility energy consumption by at least 10 per cent of electricity. For example, a company could implement multiple projects on separate systems that collectively yield a significant amount of energy savings. On a case-by-case basis, NEA will assess if a system-level M&V is appropriate
This requirement for measurement and verification is waived for motor, lighting (excluding lighting controls), and air-conditioner (including variable refrigerant flow system) retrofit projects.
E2F Can Also Support The Identification Of Energy Efficiency Opportunities And Monitoring Energy Consumption
As Energy Efficiency Fund (E2F) is an umbrella scheme comprising 5 different grants to support businesses with industrial facilities to improve energy efficiency, it also helps support other areas before and after the implementation of energy efficient technologies.
Businesses can receive up to 50% support (capped at $200,000) to carry out detailed energy audits in existing facilities under Energy Assessment, or up to 50% support (capped at $600,000) to conduct design workshops to improve efficiency for new facilities or major expansion under Resource Efficient Design.
They can also receive support up to $600,000 to adopt low-global warming potential (GWP) refrigerant chillers under the Low-GWP Refrigerants Chillers grant. This grant will close its funding application on 30 September 2022.
Post-implementation, businesses can tap on the Energy Management Information System (EMIS) grant for up to 50% support (capped at $250,000) to install EMIS to monitor energy consumption.
Businesses In Food Services, Food Manufacturing and Retail Sectors Can Tap On The Energy Efficiency Grant
While NEA’s Energy Efficiency Fund is targeted at businesses in the manufacturing sector, businesses in food services, food manufacturing and retail sectors have also been significantly affected by higher electricity prices. These businesses will be able to tap on the new Energy Efficiency Grant, as announced on 21 June 2022 by MOF.
The Energy Efficient Grant is for local SMEs in Food Services, Food Manufacturing and Retail sectors and will provide up to 70% grant support for the adoption of energy-efficient equipment in pre-approved categories. There is a funding cap of $30,000 per company.
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