A Guide to Malaysia's Energy Audit Conditional Grant (EACG 2.0)

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A Guide to Malaysia's Energy Audit Conditional Grant (EACG 2.0)

Reading Time: Approximately 7-8 minutes

Key Takeaway: Malaysia's Energy Audit Conditional Grant (EACG 2.0) provides financial assistance for eligible commercial and industrial businesses to conduct energy audits, identify savings, and implement efficiency measures, ultimately reducing operational costs and supporting national sustainability goals.

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Problem: Are your business's energy bills stubbornly high, eating into your profits?

Agitate: With rising operational costs and increasing pressure to be sustainable, ignoring your energy consumption is no longer an option. Finding the capital for expert energy audits can feel like another financial burden, leaving you stuck in an expensive cycle.

Solve: Good news! A Guide to Malaysia's Energy Audit Conditional Grant (EACG 2.0) reveals how your business can get government funding to identify and fix energy waste, helping you save money and contribute to a greener future without breaking the bank.

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Summary

The Energy Audit Conditional Grant (EACG 2.0) is a Malaysian government initiative under the 12th Malaysia Plan (2021-2025) aimed at encouraging commercial and industrial sectors to improve energy efficiency. Managed by the Sustainable Energy Development Authority (SEDA) Malaysia, this grant provides financial aid for businesses to conduct energy audits using Energy Commission (ST) registered Energy Service Companies (ESCOs). Eligible applicants are commercial buildings or industrial installations with a minimum electricity consumption of 100,000 kWh per month. The grant amounts can be up to RM60,000 for commercial buildings and up to RM100,000 for industrial installations. Key conditions include implementing recommended energy-saving measures equivalent to or higher than the grant amount within three years and reporting progress. Applications are processed on a first-come, first-served basis.

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What is the Energy Audit Conditional Grant (EACG 2.0)?

Let's talk about something really exciting for businesses in Malaysia: the Energy Audit Conditional Grant, or EACG 2.0. This is a special program from the Malaysian government designed to help companies like yours save money on energy. It's part of a bigger plan called the 12th Malaysia Plan (RMK-12), which runs from 2021 to 2025.

Think of it this way: the government wants businesses to be smarter about how they use energy. Why? Because using less energy helps save money, it's better for the environment (less pollution!), and it makes Malaysia a stronger, more sustainable country.

The EACG 2.0 is basically a financial helping hand. It's not a loan you have to pay back, but a grant. This grant gives money to businesses in the commercial (like office buildings, hotels, shopping malls) and industrial (like factories and manufacturing plants) sectors.¹⁰ The main idea is to help these businesses pay for something called an "energy audit."

What's an Energy Audit?

An energy audit is like a health check-up for your building's energy use. Imagine you go to the doctor, and they check your blood pressure, listen to your heart, and ask about your habits. An energy auditor does something similar for your business. They come in and:

• Look at your energy bills: They check how much electricity, gas, or other energy you've been using over time.
• Inspect your equipment: They'll look at your air conditioning systems, lighting, machinery, motors, and anything else that uses energy.
• Measure energy use: Sometimes they'll use special tools to measure how much power different machines are actually drawing.
• Find waste: They try to find places where energy is being wasted. Maybe lights are left on in empty rooms, or an old air conditioner is using too much power, or there are leaks in your compressed air system.
• Suggest improvements: Most importantly, they'll give you a report with ideas on how to save energy. These ideas are called "Energy Saving Measures" (ESMs). They'll tell you how much you could save and roughly how much it would cost to make those changes.

The EACG 2.0 helps you pay for this important energy audit. But there's a "conditional" part to the grant, which we'll explain later.

Who Manages This Grant?

The Sustainable Energy Development Authority (SEDA) Malaysia is the main organization that runs this grant program. They are the ones you'll apply to, and they oversee the process. The Energy Commission (ST) also plays a role, especially by listing the approved energy audit companies.

So, if you're thinking, "A Guide to Malaysia's Energy Audit Conditional Grant (EACG 2.0) sounds useful," then you're on the right track! It's a real opportunity to get expert advice on cutting your energy costs.

Who Can Apply for EACG 2.0? (Are You Eligible?)

Not every business can get this grant. The government wants to help businesses that use a significant amount of energy, as these are the ones where big savings can be made. So, how do you know if your business qualifies?

Here are the main rules to be eligible for A Guide to Malaysia's Energy Audit Conditional Grant (EACG 2.0):

• Type of Business: You must be a commercial building owner or an industrial installation owner. This means anything from a large office building, hotel, hospital, or shopping mall to a factory, manufacturing plant, or other industrial site.¹⁶
• Energy Consumption: This is a key requirement. Your business needs to have a minimum electricity consumption of 100,000 kilowatt-hours (kWh) per month at one electricity metering point. To put that into perspective, 100,000 kWh is quite a bit of electricity! If your average monthly electricity bill is high, you might meet this criteria. It's important to check your past electricity bills to confirm this.
• No Previous EACG Under RMK-11: If your business already received an EACG grant under the previous 11th Malaysia Plan (which ran from 2016-2020), you generally cannot apply for EACG 2.0 for the same site. This grant is meant to help new businesses or new sites get started with energy audits.
• Appoint an ESCO: You must work with an Energy Service Company (ESCO) that is officially registered with the Energy Commission (Suruhanjaya Tenaga - ST). These ESCOs are the experts who will actually perform the energy audit for you. SEDA Malaysia has a list of approved ESCOs on their website, so you can easily find one.
• Commit to Implement Savings: This is the "conditional" part of the grant. You're not just getting money for the audit. You need to agree to actually implement some of the energy-saving measures (ESMs) that the audit suggests. The rule is that the cost of the measures you implement must be equal to or higher than the amount of the grant you receive. For example, if you get an RM60,000 grant, you need to show that you've invested at least RM60,000 in energy-saving projects within three years after the audit. This shows you're serious about saving energy, not just getting a free audit.
• Audit Timeline: The energy audit itself must be completed within two months after you sign the contract with SEDA Malaysia for the grant. This keeps things moving efficiently.
• Reporting Progress: You'll also need to submit reports to SEDA Malaysia every six months to show the progress of your energy-saving implementations. This helps SEDA track how effective the grant program is.
• Single Application: Generally, a company can only apply for one EACG grant for a specific site or account. However, if your company has multiple large facilities at different locations, each meeting the 100,000 kWh/month criteria, you might be able to apply for each separate site.

So, if your business meets these requirements, then A Guide to Malaysia's Energy Audit Conditional Grant (EACG 2.0) is definitely something you should look into. It's a great way to kickstart your energy-saving journey.

How Much Money Can You Get? (Grant Amounts)

The amount of grant money you can receive depends on whether your premises is a commercial building or an industrial installation. The grant is designed to cover a significant portion of the cost of the energy audit itself.

Here's a breakdown of the typical grant limits:

• For Commercial Buildings: You can apply for a grant of up to RM60,000. This applies to places like office buildings, hotels, hospitals, shopping malls, and other similar commercial properties.
• For Industrial Installations: You can apply for a grant of up to RM100,000. This is for factories, manufacturing plants, and other heavy energy-consuming industrial sites.

It's important to remember that these are maximum amounts. The actual grant amount will be based on the actual cost of the energy audit conducted by the ESCO. The grant aims to cover a substantial part of these costs.

This grant covers both electrical energy audits and thermal energy audits. This means the ESCO won't just look at your electricity use, but also at other energy sources like natural gas, steam, or heat, if your business uses them. This comprehensive approach helps you find all possible areas for savings.

The grants are usually given out on a first-come, first-served basis. This means it's a good idea to apply as soon as you're ready, because the funds allocated each year are limited. Waiting too long might mean the grant money for that year runs out.

What's the Process for Applying? (Steps to Get the Grant)

Applying for A Guide to Malaysia's Energy Audit Conditional Grant (EACG 2.0) involves a few key steps. It might seem a bit complicated at first, but with the right help, it can be a smooth process.

Here's a simplified guide to how the application process generally works:

1. Check Your Eligibility: First, confirm that your business meets all the requirements we discussed earlier, especially the 100,000 kWh/month electricity consumption and that you haven't received the previous EACG.
2. Find a Registered ESCO: This is a crucial step. You need to choose an Energy Service Company (ESCO) that is registered with the Energy Commission (Suruhanjaya Tenaga - ST). You can usually find a list of these approved ESCOs on SEDA Malaysia's official website. It's a good idea to contact a few ESCOs, get quotes for the energy audit, and understand their approach.
3. Prepare Your Documents: The ESCO you choose will usually help you gather all the necessary paperwork. This typically includes:
• Your company registration documents.
• Recent electricity bills (to prove your consumption).
• Information about your building or industrial facility.
• Any other documents SEDA Malaysia might ask for.
4. Submit the Application: The ESCO will often assist you with filling out and submitting the formal grant application to SEDA Malaysia. This ensures everything is correctly filled out and all required documents are included.
5. Application Review and Approval: SEDA Malaysia will review your application. If everything is in order and you meet the criteria, and there's still grant money available, your application will be approved. You'll then sign a contract with SEDA Malaysia.
6. Conduct the Energy Audit: Once the contract is signed, the ESCO will proceed with the energy audit at your premises. Remember, this audit needs to be completed within two months of signing the contract. The ESCO will identify energy-saving opportunities and prepare a detailed energy audit report for you.
7. Implement Energy Saving Measures (ESMs): Based on the energy audit report, you will need to implement energy-saving measures. As a condition of the grant, the total investment in these measures must be equal to or greater than the grant amount you received. You have up to three years from the date of the contract to implement these measures.
8. Submit Progress Reports: You'll need to send progress reports to SEDA Malaysia every six months to show what energy-saving measures you've implemented and the savings you've achieved. This might involve using an online system like the Energy Management Information System (EMIS) provided by the Energy Commission.
9. Grant Disbursement: The grant money is usually disbursed in stages, often after certain milestones are met, such as the completion of the energy audit and possibly after some initial implementation of ESMs. The exact disbursement schedule will be outlined in your grant contract with SEDA.

It's important to keep clear records of all your energy bills, audit reports, and the costs of implementing your energy-saving projects. This will be vital for your progress reports and for showing compliance with the grant conditions.

The Benefits of Getting the EACG 2.0 (Why It's Good for Your Business)

Participating in A Guide to Malaysia's Energy Audit Conditional Grant (EACG 2.0) offers several significant advantages for your business, beyond just the grant money itself:

• Reduced Operating Costs: This is probably the biggest and most direct benefit. Energy audits identify where you're wasting energy. By implementing the suggested changes, you can significantly lower your monthly electricity and other utility bills. These savings go straight to your bottom line, increasing your profits.
• Financial Assistance for Audits: Energy audits can be expensive. The grant helps cover these initial costs, making it much more affordable for businesses to get expert advice on energy efficiency. Without the grant, many businesses might put off these audits due to the upfront investment.
• Improved Energy Efficiency: You'll learn exactly how your business consumes energy. This knowledge empowers you to make informed decisions about your equipment, operations, and energy management strategies, leading to long-term efficiency improvements.
• Environmental Benefits: By using less energy, your business reduces its carbon footprint. This contributes to Malaysia's national goals for reducing greenhouse gas emissions and combating climate change. It also enhances your company's image as an environmentally responsible organization.
• Compliance with Future Regulations: With new laws like the Energy Efficiency and Conservation Act (EECA) 2024 coming into force, being energy-efficient and having an established energy management system will become increasingly important. Participating in EACG 2.0 helps you get a head start on these future compliance requirements.
• Enhanced Business Reputation: Companies that demonstrate a commitment to sustainability and energy efficiency are often viewed more positively by customers, investors, and the public. This can lead to new business opportunities and improved brand perception.
• Access to Expert Knowledge: You'll get to work with professional Energy Service Companies (ESCOs) who are experts in energy management. They can provide valuable insights and guidance that might not be available internally.
• Potential for No-Cost/Low-Cost Savings: Energy audits often reveal simple, inexpensive changes that can lead to immediate savings. These "no-cost" or "low-cost" measures can be implemented quickly and start saving you money right away.
• Government Recognition and Support: Being part of a government-backed initiative like EACG 2.0 shows that your business is aligned with national development goals. SEDA Malaysia also offers ongoing support, guidance, and training opportunities to grant recipients.

Overall, the EACG 2.0 is more than just a grant; it's an investment in your business's future. It provides the tools and financial support to make your operations leaner, greener, and more profitable.

Important Things to Remember

When looking into A Guide to Malaysia's Energy Audit Conditional Grant (EACG 2.0), keep these points in mind:

• First-Come, First-Served: As mentioned, funds are limited each year and allocated on a first-come, first-served basis. If you're eligible and interested, it's best to act quickly.
• Commitment is Key: The "conditional" part of the grant is serious. You must be prepared to invest in implementing the recommended energy-saving measures. This isn't just about getting an audit; it's about making real changes to save energy.
• Choose the Right ESCO: The quality of your energy audit heavily depends on the ESCO you choose. Make sure they are experienced, reputable, and registered with the Energy Commission.
• Keep Good Records: Document everything – your energy bills, audit reports, costs of implemented measures, and energy savings achieved. This will be crucial for reporting to SEDA Malaysia.
• Long-Term Benefits: While there's an initial effort involved, the long-term benefits of reduced energy costs and improved efficiency can be substantial for your business.

The Malaysian government is serious about promoting energy efficiency, and the EACG 2.0 is one of the key ways they are supporting businesses in this journey. By taking advantage of this grant, you can ensure your business stays competitive, reduces its environmental impact, and saves money in the long run.

In summary, Malaysia's Energy Audit Conditional Grant (EACG 2.0) is a valuable government initiative designed to help commercial and industrial businesses significantly reduce their energy consumption and operational costs. By providing financial assistance for comprehensive energy audits and requiring the implementation of energy-saving measures, the grant encourages a greener, more efficient business landscape in Malaysia. Meeting the eligibility criteria, such as minimum energy consumption and commitment to implementing audit recommendations, can unlock substantial savings and enhance your business's sustainability profile.

Don't let high energy bills continue to eat into your profits. Take advantage of this government support to make your business more energy-efficient. For personalized advice on navigating A Guide to Malaysia's Energy Audit Conditional Grant (EACG 2.0) or to connect with an approved ESCO, WhatsApp or call us today at 0133006284. Let's start your journey towards significant energy savings!