Energy costs are one of the most stubborn line items on a Singapore SME’s profit and loss statement. The Energy Efficiency Grant (EEG) is designed to help businesses do something about it — by co-funding the purchase and installation of energy-efficient equipment. For a qualifying SME, the grant can cover up to 70% of the cost of pre-approved equipment, turning an expensive capital upgrade into an affordable one that pays for itself in lower utility bills.
This guide explains what the EEG covers, who is eligible, the two tiers of support, how much you can claim, and how to apply.
What Is the Energy Efficiency Grant?
The Energy Efficiency Grant is a government co-funding scheme that helps businesses invest in energy-efficient equipment to reduce energy consumption and carbon emissions. It is administered across several government agencies depending on your sector, with Enterprise Singapore overseeing Food Services and Retail, and other agencies covering construction, manufacturing, maritime and data centres.
The grant was introduced to help businesses cope with rising energy costs while supporting Singapore’s wider decarbonisation goals. It has since been expanded so that the base tier is available across all sectors, and the scheme has been extended — businesses should confirm the current application window directly with Enterprise Singapore before applying.
Two Tiers of Support
The EEG offers two levels of support depending on the scale of your investment:
| Base Tier | Advanced Tier | |
|---|---|---|
| What it covers | Pre-approved, off-the-shelf energy-efficient equipment | Larger, customised investments delivering substantial energy or carbon savings |
| Support level | Up to 70% for SMEs; up to 30% for non-SMEs | Support based on the lifetime carbon or energy savings achieved |
| Funding cap | Up to S$30,000 per company | Up to S$350,000 in total (inclusive of any Base Tier support drawn) |
| Availability | Expanded to all sectors | Selected sectors such as construction, manufacturing and maritime |
The Base Tier is the right fit for most SMEs — it lets you buy from a list of pre-approved equipment (such as energy-efficient LED lighting, refrigeration, air-conditioning and water heaters) with minimal paperwork. The Advanced Tier is aimed at companies undertaking larger projects where the grant is computed against the lifetime energy or carbon savings the investment will deliver.
Who Is Eligible?
To qualify for the EEG, a business generally needs to meet the following criteria:
- Be a business entity that is registered or incorporated in Singapore.
- Have a minimum of 30% local shareholding (with certain exceptions, such as maritime companies and data-centre users).
- Purchase equipment from the list of pre-approved energy-efficient equipment (for the Base Tier).
- Not have paid, committed to or started work on the purchase before applying — the grant must be approved first.
To qualify for the enhanced SME support rate, your company also needs to meet the standard SME definition (group annual sales turnover of not more than S$100 million, or group employment size of not more than 200 workers).
How to Apply
- Identify the equipment. For the Base Tier, choose from the list of pre-approved equipment relevant to your sector.
- Get a quotation from a supplier for the equipment and installation.
- Submit the application on the Business Grants Portal at GoBusiness before making any purchase or commitment.
- Await approval. Do not proceed with the purchase until the grant is approved, or you risk disqualifying the claim.
- Purchase, install and pay for the equipment once approved.
- Submit the claim with the required supporting documents (invoices, proof of payment and proof of installation) to receive disbursement.
How the EEG Fits With Other Grants
The EEG is one of a suite of government schemes SMEs can tap. If you are weighing your options, it is worth understanding how the main grants differ — our comparison of EDG vs PSG vs MRA is a good starting point. For digital and productivity tools rather than energy equipment, the Productivity Solutions Grant may be more appropriate. And if your upgrade is part of a larger expansion, the Enterprise Financing Scheme can help fund the balance. Employers should also keep track of their SkillsFuture Enterprise Credit when planning workforce upgrades alongside equipment upgrades.
What Equipment Qualifies?
Under the Base Tier, the grant covers a defined list of pre-approved, energy-efficient equipment. Typical categories include energy-efficient LED lighting, high-efficiency air-conditioning systems and chillers, refrigeration units, water heaters, and motors. Because the list is curated by the administering agencies, companies do not have to prove the energy savings themselves for Base Tier items — the equipment has already been assessed as energy-efficient. For the Advanced Tier, the assessment is project-specific: the grant amount is computed against the lifetime carbon or energy savings the investment is expected to deliver, which is why it suits larger capital projects in energy-intensive sectors.
Worked Example
Suppose an SME food-services company replaces its ageing air-conditioning and refrigeration with pre-approved energy-efficient models at a total cost of S$40,000. Under the Base Tier at up to 70% support, the grant could fund up to S$28,000 of the cost, within the S$30,000 per-company cap, leaving the business to fund roughly S$12,000. The new equipment then reduces the company’s monthly electricity bill, so the net cost is recovered progressively through lower running expenses. This is why applying before committing to the purchase matters so much — the savings only count if the grant is approved first.
Practical Tips for a Successful Claim
The single most common reason applications fail is committing to the purchase before the grant is approved — always apply first. Keep every invoice, payment record and installation photo, because the claim stage requires documentary proof. For the Base Tier, stick to the pre-approved equipment list; equipment outside it will not qualify at the base level. And remember the funding cap applies per company, so plan larger multi-item upgrades to make the most of the S$30,000 base allowance.
How Raffles Corporate Services Can Help
We help SMEs assess grant eligibility, prepare and submit EEG applications on the Business Grants Portal, and manage the claim documentation so disbursement goes smoothly. If you are planning an equipment upgrade, talk to us first at [email protected] or +65 8501 7133 — applying before you commit is the key to getting funded.
This article is for general information only. Grant terms, support levels and application windows are set by the administering agencies and may change; confirm current details before applying.
— The Editorial Team, Raffles Corporate Services