How to Secure the EACG 2.0 Grant for Your Energy Audit

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How to Secure the EACG 2.0 Grant for Your Energy Audit

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Key Takeaway: Are your business's energy bills a growing headache, but the thought of paying for a full energy audit seems like another big expense? Many Malaysian businesses are in the same boat, especially with the Energy Efficiency and Conservation Act (EECA) 2024 making energy management a priority. But what if you could get financial help to kickstart your energy-saving journey? This guide will show you How to Secure the EACG 2.0 Grant for Your Energy Audit, making it easier to discover significant savings and improve your operations without breaking the bank.

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Problem: Your company suspects it's wasting energy and wants to identify ways to cut costs and comply with new regulations. However, the upfront cost of a comprehensive energy audit is a barrier, making it difficult to even start your energy efficiency journey.

Agitate: Without an audit, you're constantly paying for unknown inefficiencies, missing out on potential savings, and risk non-compliance with the EECA 2024. This inaction directly impacts your profitability and prevents your business from becoming more sustainable and competitive.

Solve: The Energy Audit Conditional Grant (EACG 2.0) from SEDA Malaysia is specifically designed to overcome this barrier. This article will guide you on How to Secure the EACG 2.0 Grant for Your Energy Audit, providing you with the necessary steps, eligibility criteria, and tips to access government funding. Unlock the insights from a professional energy audit and transform your energy consumption into a powerful financial advantage.

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Summary

The Energy Audit Conditional Grant (EACG 2.0) is a program by SEDA Malaysia under the 12th Malaysia Plan (RMK-12) to help Malaysian industrial and commercial businesses fund energy audits. It provides grants of up to RM100,000 for industrial sites and RM60,000 for commercial buildings. How to Secure the EACG 2.0 Grant for Your Energy Audit involves:

1. Checking Eligibility: Minimum electricity consumption of 100,000 kWh/month.
2. Appointing a Registered ESCO: You must work with an Energy Service Company (ESCO) registered with the Energy Commission (ST).
3. Applying to SEDA: The ESCO often assists with this.
4. Completing the Audit: Within 2 months of signing the contract.
5. Implementing Measures: Agreeing to implement recommended energy-saving measures (ESMs) equal to or more than the grant value within 3 years.
6. Disbursement: Paid in stages (e.g., 20% upfront, 80% upon audit completion).

This grant is crucial for businesses looking to comply with the Energy Efficiency and Conservation Act (EECA) 2024 and identify significant energy savings. Applications are on a first-come, first-served basis and are available until the end of 2025 (subject to quota).

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1. Understanding the EACG 2.0 Grant: Your Gateway to Energy Savings

Energy costs are a big deal for businesses in Malaysia. From powering factories to lighting up office buildings and running air conditioning, energy bills can eat up a huge chunk of your operating budget. Plus, with new laws like the Energy Efficiency and Conservation Act (EECA) 2024 now in effect (as of January 1, 2025), businesses, especially large energy users, are expected to manage their energy use more effectively.

One of the best ways to start saving energy and prepare for compliance is by conducting a detailed energy audit. An energy audit is like a health check-up for your building's energy use; it tells you exactly where you're wasting energy and how to fix it. However, a comprehensive energy audit can be an investment in itself.

This is where the Energy Audit Conditional Grant (EACG 2.0) comes in. This fantastic program by the Sustainable Energy Development Authority (SEDA) Malaysia is designed to help Malaysian industrial and commercial businesses pay for these crucial energy audits. It's part of the 12th Malaysia Plan (RMK-12), running from 2021 to 2025, and aims to encourage businesses to become more energy efficient.

The "Conditional" part of the grant means there are some rules you need to follow to get the money, but these rules are all about making sure you actually use the audit's findings to save energy. This guide will walk you through How to Secure the EACG 2.0 Grant for Your Energy Audit, making it as easy as possible for your business to benefit.

 

2. Who is Eligible for the EACG 2.0 Grant?

Before you get excited about cutting your energy bills, you need to check if your business qualifies for the EACG 2.0 grant. SEDA Malaysia has specific requirements for who can apply.

General Eligibility Criteria:

• Type of Business: The grant is available for both commercial buildings (like office buildings, shopping malls, hotels) and industrial installations (like factories, manufacturing plants).
• Minimum Energy Consumption: This is a key requirement. Your building or factory must have a minimum electricity consumption of 100,000 kWh per month.
• How to check: Look at your electricity bills for the last 6-12 months. If your average monthly consumption is at or above 100,000 kWh, you likely qualify in terms of energy use.
• For large consumers under EECA 2024: If your annual energy consumption (electrical and thermal combined) is equal to or exceeds 21,600 MWh/year (which is approximately 1.8 million kWh/month), you are an "Energy Consumer" under the EECA 2024 and must conduct an energy audit when notified by the Energy Commission. The EACG 2.0 is highly relevant for you.
• Previous Grant History: Your company must not have received a previous EACG under the 11th Malaysia Plan (RMK-11). This grant is for new applicants. If you have multiple plants at different locations, and each plant meets the 100,000 kWh/month criteria, you may be eligible to apply for each plant separately.
• Appointing an ESCO: You must appoint an Energy Service Company (ESCO) that is officially registered with the Energy Commission (Suruhanjaya Tenaga, ST). This is a crucial step, as the ESCO will perform the audit and often assist with the grant application process.
• Commitment to Implement: This is the "conditional" part. You must agree to implement a part of the proposed energy-saving measures (ESMs) identified in the energy audit report. The investment cost of these implemented measures must be similar to or higher than the grant value received. This commitment needs to be fulfilled within three years of signing the contract with SEDA.
• Audit Completion Timeline: The energy audit must be completed within two months after signing the contract with SEDA Malaysia.
• REEM/REM Requirement (for certain businesses): If your installation falls under the Efficient Management of Electrical Energy Regulations 2008 (EMEER) by the Energy Commission (which generally applies to users consuming 500,000 kWh per month or more, or certain installed capacities), you must have appointed a Registered Electrical Energy Manager (REEM). This is now broadly covered by the Registered Energy Manager (REM) requirement under EECA 2024.
• For Sarawak: Specific rules apply for Sarawak, where the Electrical Inspectorate Unit (EIU) replaces some of the ST/EC requirements.

By meeting these requirements, you're well on your way to understanding How to Secure the EACG 2.0 Grant for Your Energy Audit.

 

3. How Much Grant Money Can You Get?

The EACG 2.0 grant offers different maximum amounts depending on whether your business is in the industrial or commercial sector:

• For Industrial Companies: You can apply for a grant of up to RM100,000 per site/account. This covers a significant portion, or even the full cost, of a comprehensive energy audit for many industrial facilities.
• For Commercial Buildings: You can apply for a grant of up to RM60,000 per site/account. This helps commercial building owners undertake detailed energy assessments.

Important Note: The grant amount is conditional, meaning you'll get the money to pay for the audit, but you are then expected to invest at least the grant amount (or more) into implementing the energy-saving measures recommended by the audit. This ensures that the grant genuinely leads to energy efficiency improvements.

The grants are disbursed on a first-come, first-served basis and are available until the end of 2025 or until the allocated funds are fully utilized. This means it's wise to apply as early as possible if you meet the criteria.

 

4. The Step-by-Step Process: How to Secure the EACG 2.0 Grant for Your Energy Audit

Securing the EACG 2.0 grant involves a few key steps. While it might seem a bit daunting, many Energy Service Companies (ESCOs) are experienced with this process and can help you navigate the application.

Step 1: Verify Your Eligibility & Prepare Documents

• Check Consumption: Confirm your monthly electricity consumption (100,000 kWh/month minimum). Gather your latest 12-24 months of electricity bills as proof.
• Understand Commitments: Make sure your management understands and agrees to the conditions, especially the commitment to implement recommended energy-saving measures (ESMs) equal to or greater than the grant value within 3 years.
• Company Documents: Prepare basic company documents like company registration (SSM), latest financial statements, and a letter of authorization for the person applying on behalf of the company.

Step 2: Appoint a Registered Energy Service Company (ESCO)

• This is a crucial step. You cannot apply for the grant yourself; you must work with an ESCO registered with the Energy Commission (ST).
• How to find an ESCO: You can find a list of registered ESCOs on the Energy Commission's (ST) official website. Look for companies with good experience in your specific industry (e.g., manufacturing, hotels, offices).
• Get a Proposal: Contact a few ESCOs and ask for a proposal for conducting a comprehensive energy audit for your premises. This proposal should also detail how they will assist with the EACG 2.0 grant application.

Step 3: ESCO Assists with Grant Application to SEDA Malaysia

• Once you've chosen an ESCO and signed a contract with them for the energy audit, the ESCO will typically help you with the actual grant application.
• Application Submission: The ESCO will submit the completed application form and all supporting documents (including their own registration details and your energy consumption data) to SEDA Malaysia.
• Evaluation: SEDA Malaysia's internal committees (Technical Committee, Steering Committee) will review your application to ensure it meets all eligibility criteria.

Step 4: Grant Approval and Contract Signing

• Letter of Approval: If your application is successful, SEDA Malaysia will issue a Letter of Approval.
• Sign Agreement: You (the building/installation owner) and SEDA Malaysia will then sign a formal contract agreement. This agreement outlines the terms and conditions of the grant, including the audit timeline and your commitment to implement ESMs. This contract is valid for one month from the date of the Letter of Approval, so act quickly!

Step 5: Conduct the Energy Audit

• Timely Audit: The energy audit must be completed within two months from the date of signing the contract with SEDA. Your appointed ESCO and their Registered Energy Auditor (REA) will carry out this comprehensive audit.
• Audit Process: This involves data collection from your bills, on-site inspections, measurements using specialized equipment, and detailed analysis to identify energy-saving opportunities.

Step 6: Submit Final Energy Audit Report & First Grant Disbursement

• Report Submission: Once the energy audit is completed, your ESCO will prepare a comprehensive energy audit report detailing all findings, recommended energy-saving measures (ESMs), estimated savings, and payback periods. This report is then submitted to SEDA Malaysia for approval.
• First Disbursement (20%): Upon approval of the final energy audit report by SEDA's committee, you can submit an invoice for the first disbursement of the grant, which is typically 20% of the total grant value.

Step 7: Implement Energy Saving Measures (ESMs) & Monitor Progress

• Implementation: This is the crucial conditional part of the grant. You are required to implement the recommended ESMs from the audit report, with an investment cost equal to or more than the grant amount you received. This implementation should occur within three years of the energy audit's completion.
• Monitoring & Reporting: SEDA Malaysia will monitor your progress during this 3-year period. You'll likely need to submit progress reports (e.g., every 6 months) through SEDA's Energy Management Information System (EMIS), showing the energy savings achieved.
• Minimum Saving Targets: SEDA expects minimum energy savings: 5% (1st year), 7% (2nd year) for commercial buildings, and 3% (1st year), 3% (2nd year) for industrial sites (for no-cost/low-cost measures).
• Final Disbursement (80%): Once you demonstrate that the ESMs have been implemented and you've achieved the agreed-upon energy savings, you can submit an invoice for the final 80% disbursement of the grant value.

What if you don't meet the conditions? If you fail to implement the recommended measures or achieve the agreed-upon savings targets, you may be required to refund the disbursed grant amount. This emphasizes the importance of commitment and selecting practical, impactful ESMs.

Following these steps meticulously is key to How to Secure the EACG 2.0 Grant for Your Energy Audit.

 

5. Why the EACG 2.0 Grant is a Must-Have for Your Business

Beyond just covering the cost of an audit, getting the EACG 2.0 grant offers several strategic advantages:

• Financial Relief: Directly reduces the upfront cost of an energy audit, which can be a barrier for many businesses.
• Expert Guidance: Ensures you get a professional, comprehensive energy audit conducted by a qualified Registered Energy Auditor (REA) from an ST-registered ESCO. This means reliable findings and actionable recommendations.
• Guaranteed Savings: The grant's condition of implementing measures ensures that the audit leads to actual energy savings, directly impacting your bottom line.
• Compliance with EECA 2024: For many large energy consumers, a comprehensive energy audit will become mandatory under the new Energy Efficiency and Conservation Act 2024. The EACG 2.0 helps you fulfill this legal requirement, avoiding potential fines.
• Increased Competitiveness: Lower energy costs mean lower operating expenses, making your products or services more competitive.
• Enhanced Sustainability & Reputation: Demonstrating commitment to energy efficiency improves your company's green image, which is increasingly important for customers, investors, and even attracting talent.
• Access to Further Opportunities: The audit findings can also help you identify projects that might qualify for other green financing or tax incentives, like the Green Investment Tax Allowance (GITA).

The EACG 2.0 grant is a limited-time opportunity, available until the end of 2025 (or until funds are used up). So, if your business meets the criteria, now is the time to act.

In summary, this valuable grant, offering up to RM100,000 for industrial sites and RM60,000 for commercial buildings, significantly reduces the financial barrier to conducting a comprehensive energy audit. By understanding How to Secure the EACG 2.0 Grant for Your Energy Audit – checking eligibility, partnering with an ST-registered ESCO, submitting a thorough application, and committing to implementing the recommended energy-saving measures – your business can unlock substantial savings, ensure compliance with the EECA 2024, and bolster its sustainability credentials. Don't miss out on this first-come, first-served opportunity to transform your energy consumption into a source of competitive advantage.

Are your energy bills weighing you down? Ready to stop guessing and start saving with a professional energy audit, backed by government funding? Our team of experts works closely with ST-registered Energy Service Companies (ESCOs) to guide you through every step of the EACG 2.0 grant application process, from eligibility checks to audit completion and successful disbursement. Don't delay – this grant is available on a first-come, first-served basis until the end of 2025! WhatsApp or call us today at 0133006284 to learn more and begin your journey towards energy efficiency and significant cost savings.