Funding for energy efficiency and electrification upgrades for local governments

Funding program archive

This page preserves a dated funding-program record and links it to current project-planning guidance.

Status note: This archive does not confirm that applications are open, funds remain available or the earlier eligibility and co-funding settings still apply. Verify the current administrator page and guidelines.

What this article reported

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 intended outcomes of the program are:

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:

The rules are in the grant opportunity guidelines.

Closing date: Friday 13 June 2025

How to use this information now

Before relying on a grant, confirm the current round, applicant and project eligibility, eligible expenditure, co-contribution, assessment process, closing date and evidence obligations. Build the technical case so the project remains understandable with grant support shown separately.

Separate source-reported facts from forecasts, targets and commentary. For a current project, retain the official source, version, effective date, assumptions and decision record in the evidence file.

Is Community Energy Upgrades Fund Round 2 open for applications?

No. The Australian Government department's program page, checked on 23 October 2026, marks Round 2 closed. Applications opened on 4 March 2025 and closed on 13 June 2025. Round 1 is also closed. The historical Northmore Gordon article should not be read as a current invitation to apply. Check https://www.dcceew.gov.au/energy/programs/community-energy-upgrades-fund for any new official program announcement.

What types of energy upgrades are eligible under the Community Energy Upgrades Fund Round 2?

Round 2 supported energy efficiency and electrification upgrades at local-government facilities, subject to its grant guidelines. The round closed on 13 June 2025, so these eligibility examples describe the historical program rather than an available application. For a new project, check current government funding opportunities and their own equipment and applicant rules before committing expenditure.

How should a local government approach the application process for the Community Energy Upgrades Fund?

Round 2 is closed, so a council cannot submit a new application to that round. For future funding opportunities, start with a project brief covering the site, existing energy use, proposed upgrade, baseline conditions and costs. Then check the new opportunity's applicant eligibility, eligible expenditure, dates and evidence requirements against its current official guidelines.

Why is establishing a clear baseline important before applying for an energy upgrade grant?

A baseline establishes your site's energy performance before works begin and is essential for demonstrating savings and compliance with funding conditions. The funding guidelines require documented evidence of current consumption, operating conditions, and equipment age. Without a clear baseline, you cannot verify that the implemented upgrade achieved the expected energy reduction or meet the administering body's reporting obligations. A formal measurement and verification plan should identify what data will be collected before installation, during commissioning, and after the system operates normally. We can help establish a practical baseline, plan your measurement approach, and build the evidence file needed for both funding approval and post-project verification.

What is the practical difference between eligible expenditure and total project cost under this grant?

Eligible expenditure is the portion of your project costs that the grant can fund; total project cost includes all expenses. The Community Energy Upgrades Fund covers up to 50% of eligible expenditure, so your local government may need to fund the remainder from internal capital budgets or other sources. Eligible items typically include equipment, installation labour, and commissioning; ineligible items might include contingencies, administrative overhead, or preliminary studies. A practical investment case should separate eligible costs from ineligible costs and model the project with and without grant support, so management understands the decision if funding is delayed or reduced. We can help distinguish eligible from ineligible items in your quotes and build a resilient investment case.

How does project timing affect eligibility and funding approval for energy upgrades?

Many grant schemes have specific timing rules: work must not commence before defined dates, equipment must be ordered or installed within particular windows, and registration or nomination may need to occur before installation. Committing to a purchase or signing a binding contract before understanding these requirements can disqualify your project or forfeit funding options. Before finalizing equipment orders or construction schedules, confirm the scheme's exact definitions of 'commencement' and 'eligible dates.' Document the chronology of your feasibility study, final investment decision, equipment purchase, installation and commissioning. Our project-timing guidance helps you preserve evidence and funding options by raising these questions while the project is still being scoped, not after commitments are made.

What role does measurement and verification play in securing and reporting on grant funding?

Measurement and verification (M&V) demonstrates that your upgrade achieved the claimed energy savings and meets the grant's reporting obligations. The administering body will require documented evidence: what your energy use was before the project (baseline), what it is after (post-project), and how those were measured. M&V separates genuine savings from reductions caused by weather, production changes, or operating-hours variation. Without a credible M&V plan agreed before installation, you risk disputes over savings claims or inability to verify compliance with funding conditions. We provide M&V services including baseline establishment, measurement boundary definition, calculation methodology, and reporting. Engaging M&V expertise early supports both funding approval and robust performance tracking.

Should a local government include unconfirmed funding in its investment decision for an energy upgrade?

No. Funding should be treated separately from the project's operating merit. Prepare your investment case with and without the grant, so management understands the decision if funding is delayed, reduced, or unavailable. A grant page remaining online does not confirm that the current round is open or that your application will be successful. Before treating the $2.5 million as secured funding, verify the round's status, application deadline, approval likelihood, and payment conditions. Keep the project's economic viability visible alongside the funding scenario: does the upgrade deliver acceptable returns on the council's capital even without the grant? This approach protects against projects that depend entirely on unconfirmed external support. We can help build a resilient business case that shows both scenarios.

What information should be verified before submitting an application for the Community Energy Upgrades Fund?

The department marks Round 2 closed; its application deadline was 13 June 2025. Before preparing for any future grant, verify that a new round actually exists and is open, then check its applicant and project eligibility, eligible expenditure, deadlines and reporting conditions against official guidelines. The historical Northmore Gordon Round 2 article and an online grant page do not establish current funding availability.

How can Northmore Gordon assist local governments planning energy upgrades?

Northmore Gordon's published services include energy audits, feasibility and investment-case support, measurement and verification, and project delivery advice. These can help a council assess an upgrade and prepare evidence for a future funding opportunity if one is announced. Community Energy Upgrades Fund Round 2 is closed, so this answer does not offer an application pathway to that round.

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