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    National Environment Agency

    Updated

    Energy Efficiency Fund (E2F)

    Max Support
    Up to 70% (enhanced from April 2023)
    Cap
    Technology-specific caps: S$200k-S$350k per facility

    Overview

    The Energy Efficiency Fund (E2F) is a grant scheme by NEA aimed primarily at manufacturing companies to support larger, customized energy efficiency projects that go beyond off-the-shelf, pre-approved equipment. E2F supports projects that deliver measurable and verifiable energy savings (and thus carbon abatement). From 1 April 2023, pre-approved energy efficient technologies can receive fixed 70% support of qualifying costs, subject to caps per facility by technology type. NEA has introduced simplifications to the Measurement & Verification (M&V) requirement, especially for smaller projects, to ease adoption.

    Support Details

    Support Rate

    Up to 70% of qualifying costs for pre-approved technologies (enhanced from April 2023). Project-based evaluation for other technologies.

    Cap

    Technology-specific caps for pre-approved equipment: • Lighting (LED retrofit): S$200,000 per facility • Air-conditioning retrofit: S$200,000 per facility • Compressed Air Systems: S$350,000 per facility • Boiler/Heat-pump systems: S$350,000 per facility

    Eligibility Criteria

    • Business Registration: Must be Singapore-registered manufacturing company operating in Singapore
    • Sector Code: SSIC code must be within 10XXX to 32XXX (manufacturing activities)
    • Annual Turnover: Must not exceed S$500 million (group basis)
    • Project Status: Project must not have started before E2F application approval (no contracts signed, purchase orders issued)
    • Project Duration: Approved project must be completed within 36 months from approval
    • Energy Performance: Must yield measurable and verifiable energy savings/carbon abatement
    • M&V Requirements: Non-pre-approved technologies require full M&V plans

    Application Process

    1

    Preliminary Planning: Identify energy efficiency opportunities via energy audit, draft proposal with technical specs and energy savings estimates

    2

    Proposal Preparation: Gather baseline energy data (utility bills), cost estimates/quotations, determine if equipment falls under pre-approved technologies

    3

    Submit Application: Email application with supporting documents to [email protected]

    4

    Required Documents: ACRA Bizfile, audited financial statements (last 3 years), utility bills (12 months), quotations, equipment specs, M&V Plan (if required)

    5

    Technical Evaluation: NEA evaluates technical feasibility, energy savings assumptions, M&V plan, cost reasonableness

    6

    Project Execution: Upon approval, purchase and install equipment (must complete within 36 months)

    7

    M&V Implementation: Carry out baseline and post-implementation measurement, produce M&V Report endorsed by qualified third party

    8

    Claims Submission: Submit invoices, payment proof, delivery orders, installation photos, M&V report for disbursement

    Processing Time

    Technical evaluation: 8-12 weeks | Project completion deadline: 36 months from approval

    Claim Process

    1

    M&V Simplifications: For grants ≤S$50,000 using pre-approved technologies, M&V may be waived

    2

    Third-party Assessment: For grants >S$50,000 with pre-approved technologies, third-party assessment report may substitute for full M&V

    3

    External Audit: If grant exceeds S$100,000, disbursement requests must be audited by external CPA

    4

    Qualified Endorsement: Same qualified endorser who approved M&V Plan must witness measurements

    5

    Disbursement: NEA disburses approved grant amount to company's bank account after claim approval

    Important Reminder

    Claims must typically be submitted within 6 months of project completion.

    Best Practices for a Successful Application

    Start with High ROI Opportunities: Focus on compressed air, boilers, efficient motors, heat recovery systems, lighting, HVAC

    Check Pre-approved Status: Verify if proposed equipment is among pre-approved technologies for favorable 70% rate

    No Early Commitment: Avoid signing contracts or issuing purchase orders before E2F approval

    Document from Day 0: Maintain baseline energy consumption, utility bills, sub-metering, schematics, measurement plans

    Engage Qualified Consultants: Work with qualified third-party endorsers/energy consultants early for M&V guidance

    Stage Large Projects: Manage risk and comply with 36-month timeline by implementing incrementally

    Ensure Operational Discipline: Maintain measurement protocols, data logging, calibration procedures

    Budget for Audit: Projects >S$100,000 require external CPA audit for disbursement

    Plan for Contingencies: Energy projects may deviate from estimates - ensure adequate buffers

    Comparison: EDG vs PSG vs MRA

    GrantPurpose / FocusSupport RateType of Projects Allowed
    Pre-approved TechnologiesLED, AC, compressed air, boiler upgradesUp to 70% support (enhanced April 2023)Simplified M&V, faster processing, technology-specific caps
    Other Energy TechnologiesCustom energy efficiency solutionsProject-based evaluation, varies by savings potentialFull M&V requirements, detailed technical evaluation

    Each grant has its own strengths and constraints; many companies leverage more than one as part of their transformation roadmap.

    Additional Information

    Recent Enhancements (April 2023): • Pre-approved energy efficient technologies now eligible for fixed 70% support • Simplified M&V requirements for smaller projects (≤S$50,000) - M&V may be waived • Third-party assessment reports can substitute for full M&V in many cases • Technology-specific caps provide clarity on maximum support levels Key Differences from EEG: • E2F targets manufacturing sector specifically (SSIC 10XXX-32XXX) • Supports larger, customized projects beyond pre-approved equipment lists • Longer project duration (36 months vs 12 months for EEG) • Higher individual project caps but technology-specific • More comprehensive M&V requirements for non-standard technologies Maximizing E2F Benefits: • Conduct comprehensive energy audit to identify multiple improvement areas • Consider bundling complementary technologies within respective caps • Leverage pre-approved technology benefits for faster approval and higher support • Plan phased implementation for complex projects to manage risks • Engage experienced energy consultants familiar with NEA requirements Important Reminders: • Manufacturing focus makes this ideal for production facilities • Technology caps allow substantial investments in energy efficiency • Enhanced support rates from April 2023 significantly improve project economics • Simplified M&V reduces administrative burden for smaller projects • 36-month implementation window provides flexibility for complex installations

    Contact Information

    Official Website
    Email: [email protected]
    Phone: 1800 225 5632

    Frequently Asked Questions

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