If you run a small or mid-sized business in Australia, you’ve probably felt the pinch of rising power bills. What you might not realise is that government support—yes, actual dollars—exists to help you use less energy and save more. Whether you’re lighting retail floors, cooling stockrooms or running fridges round-the-clock, there are grants, rebates and incentives ready to make efficiency upgrades a whole lot easier.
What incentives are available?
The Australian Government and state bodies offer a mix of rebates, grants, and subsidies to encourage businesses to cut energy use. Programs include:
- Energy Efficiency Grants for SMEs
- VEU (Victoria) and ESS (NSW) schemes
- Solar panel and battery subsidies
- Low-cost energy audits
- Tax deductions for energy-saving assets
These programs help businesses invest in better equipment, improve insulation, switch to LED lighting or solar, and ultimately reduce retail store energy bills.
Why are energy incentives offered to businesses?
Simple: energy use in commercial spaces contributes significantly to national carbon emissions. Incentivising efficiency upgrades is a cost-effective way for governments to meet climate targets while boosting local businesses’ bottom line. It’s the classic win-win.
There’s also an economic kicker. Businesses that save on overheads are more likely to grow, hire, and innovate. So yes, there’s a strong case for handing you a grant to upgrade that clunky old HVAC system.
What are the most useful federal incentives in 2025?
✅ Energy Efficiency Grants for Small and Medium Businesses
This grant provides funding of up to $25,000 to support energy-saving upgrades. It can cover:
- New efficient equipment (like fridges or air conditioners)
- Solar installations
- Energy audits and implementation of audit recommendations
In 2023–24, round two of this grant focused on high-use industries—retail included. Expect future rounds to prioritise businesses that haven’t previously received major support. Check business.gov.au for updates.
✅ Instant Asset Write-Off (Tax Benefit)
While not a rebate, the Instant Asset Write-Off allows businesses to deduct the full cost of eligible energy-efficient equipment (like LED upgrades or smart thermostats) from their taxable income. It’s like getting a discount through your tax return.
Are there state-specific energy incentives?
Yes—and they’re often even more generous than federal schemes.
VIC: Victorian Energy Upgrades (VEU)
Retailers in Victoria can claim rebates for a variety of energy-saving measures through approved providers:
- LED lighting upgrades
- Efficient heating and cooling systems
- Commercial refrigeration
- Hot water systems
The discount is applied upfront, so you don’t have to claim it later. One Melbourne bakery owner reported slashing lighting energy costs by 60% after a VEU-supported LED upgrade.
NSW: Energy Savings Scheme (ESS)
Similar to the VEU, NSW’s ESS delivers rebates when businesses install or upgrade:
- Air conditioning
- Refrigeration
- Lighting
- Industrial processes
The savings can be hundreds or even thousands per site, depending on usage.
Can businesses claim solar incentives?
Yes. While many residential solar schemes have wound down, businesses still have access to:
- Small-scale Technology Certificates (STCs) – which reduce the upfront cost of solar installations.
- Feed-in tariffs – for selling excess power back to the grid (rates vary by state).
- Battery incentives – available in states like South Australia and Victoria.
Installing solar is a bigger up-front investment, but it pays back fast for businesses with daytime operating hours. One Queensland retailer offset 70% of their energy use using a 10kW system—cutting thousands off their annual bill.
Are these incentives hard to access?
Not if you go through an accredited provider. That’s the secret sauce.
Many energy efficiency schemes require you to use registered businesses or products to qualify. These installers often manage the paperwork for you—including the rebate application—so all you see is a lower quote.
Pro tip: Look for providers listed on official program websites (like VEU’s accredited provider list).
What kinds of upgrades qualify for incentives?
Here are some of the most commonly approved energy-saving upgrades:
- LED lighting systems – Especially in large-footprint retail stores
- High-efficiency HVAC – Heating/cooling systems with low operational costs
- Commercial fridges & freezers – Certified for low energy consumption
- Building insulation and sealing – Improves efficiency of heating/cooling
- Smart thermostats or timers – Reduce unnecessary energy use
The trick is to focus on high-consumption items. A single fridge may not matter—but 12 across 4 stores? That’s your savings goldmine.
What’s stopping businesses from applying?
Honestly? Just knowing these incentives exist.
Many retailers don’t have the time or bandwidth to chase grants. Some think they’re too small to qualify. Others worry about red tape. But here’s the thing: many schemes are structured to be frictionless. Apply once, claim automatically through your installer, or use a consultant to handle it all.
This is where the persuasion principle of Reciprocity kicks in. The government is saying: “We’ll help pay for your upgrade—just meet us halfway.” It’s a fair deal, and smart businesses are taking it.
FAQ: Common questions about business energy rebates
Can I claim incentives for upgrades I already did?
Usually no. Most rebates apply before installation. Always check terms first.
Do incentives apply to rented spaces?
Yes, in many cases. But you’ll often need landlord approval for physical upgrades.
Are incentives taxable income?
Grants typically are. Rebates (like those via installers) usually are not. Ask your accountant.
Final thought
Energy bills may feel like a fixed cost—but they’re not. Government incentives give you a way to flip the script, transforming overheads into opportunity. Whether it’s LEDs, solar or smarter systems, you’re not just cutting costs—you’re building a more resilient business. In a time where margins are tight, that matters more than ever.
If you’re serious about wanting to reduce retail store energy bills, it’s worth seeing what support is sitting right under your nose.