Energy Audit & Energy Audit Conditional Grant

Energy Audit & Energy Audit Conditional Grant involves inspecting, surveying, and analyzing energy flows in a building to conserve energy. The goal is to reduce energy input without negatively affecting output. An energy audit identifies energy efficiency measures and assesses their financial viability, performed at various levels.

The Energy Audit Conditional Grant (EACG), provided by the Malaysian government, helps companies conduct energy audits by appointing an Energy Service Company (ESCO). The grant covers both electrical and thermal energy audits, with the following limits based on sector:

• Commercial: RM 50,000.00 – RM 55,000.00
• Industrial: RM 85,000.00 – RM 90,000.00

EACG recipients must invest in energy-saving measures (ESM) equal to or greater than the grant amount within three years. For 2021, the allocation covered 25 commercial buildings and 46 industrial premises, so early applications are encouraged due to limited funding.

Eligible buildings are industrial or commercial properties that consume or generate 3,000,000 kWh or more over six consecutive months. These companies must comply with the Efficient Management of Electricity Regulations (EMEER) 2008 (excluding Sarawak). A Registered Electrical Energy Manager (REEM) must be appointed, except for Sarawak-based companies, where energy bills act as proof of consumption or generation for EACG applications.

The Sustainable Energy Development Authority (SEDA Malaysia) manages the RMK12 EACG, with Suruhanjaya Tenaga coordinating the grant. You can apply via the SEDA Malaysia website.

Key Conditions for the Grant

1. The company must appoint an ESCO registered with Suruhanjaya Tenaga or the Electrical Inspectorate Unit (for Sarawak only).
2. The company must comply with EMEER and appoint a REEM (excluding Sarawak).
3. The company must implement energy-saving measures (ESMs) within three years using internal budgets or external funding. The investment must match or exceed the grant amount.
4. The energy audit must be completed within two months from the contract signing date.
5. Companies achieving energy savings equal to or greater than the grant amount are deemed to have fulfilled the grant requirements.
6. Minimum annual energy-saving targets: 20% for commercial buildings, 10% for industrial buildings.

Contact us today to learn more about the Energy Audit Conditional Grant (EACG) and how your business can benefit from it.