A new initiative is offering support to Victorian businesses looking to reduce their energy bills, improve operational efficiency and reduce emissions.
The Large Energy User Electrification Support Program has been launched with a $1.5 million investment to assist businesses with high gas usage to assess the feasibility of replacing gas-intensive equipment with efficient electric alternatives. Businesses can receive up to $60,000 per site, or $66,000 for regional sites, to undertake feasibility studies to reduce gas consumption through electrification.
These studies will identify energy efficiency upgrades available through the Victorian Energy Upgrade (VEU) program, including potential savings on hot water boilers, stoves, ovens, dryers and similar equipment.
Businesses that have switched to electric appliances have seen significant cost savings. For example, the installation of a 26-kilowatt heat pump at the Ellinbank Dairy Research Farm reduced energy consumption by 33 per cent and saved $5,000 a year. Similarly, the Kardinia Aquatic Centre's 400kW heat pump is saving approximately $200,000 per year.
The VEU program, Australia's largest energy efficiency retrofit initiative, has helped more than 170,000 businesses and 2.4 million homes since 2009. It has reduced Victoria's emissions by more than 84 million tonnes and is on track to reduce an additional 21 million tonnes by 2025 - the equivalent of taking more than 6.5 million cars off the road for a year.
Applications for the program will open on 13 May 2024 and close on 30 September or when funds are exhausted. For more information, visit energy.vic.gov.au/businesses/victorian-energy-upgrades-businesses.