Agriculture Energy Investment Plan – On-Farm Energy Grants Program: Tier 2

This program aims to support farm businesses make connected energy improvements across farm systems.  It is one of the funding tier of the On-Farm Energy Grants Program which forms part of the Victorian Government's Agriculture Energy Investment Plan.

The Agriculture Energy Investment Plan (AEIP) seeks to support on-farm businesses to improve energy efficiency, manage energy costs, improve energy reliability and support own-generation capacity.

Grants between $50,000 and $250,000 (excluding GST) are available on a dollar-for-dollar matched funding basis.

Payment of a grant will occur at project completion. The department may, in its discretion and on a case-by-case basis, give consideration to paying a grant in (two) instalments. The request to be paid in instalments must be made at the application stage.

Eligible applicants include farmer businesses who must:
- Be a legal entity.
- Be a business with an Australian Business Number (ABN).
- Be in receipt of an on-farm type 2 energy assessment undertaken as part of the Agriculture Energy Investment Plan, or an approved equivalent energy assessment.
- Conduct an eligible farm business located in Victoria.
- Spend more than $25,000 per annum (including GST) on electricity, gas, LPG and diesel (excluding transport related energy costs).
- Be able to meet the agreed minimum 50 per cent private cash contribution, and provide evidence of the contribution.
- Attest to having obtained all relevant regulatory permits and approvals for the project to commence (where applicable).
- Meet all industrial relations obligations as an employer in accordance with the National Employment Standards.
- Have at least three years of trading history.
- Agree to participate in future program evaluation activity.
- Provide audited financial reports for the last three financial years to enable the department to conduct a Financial Risk Assessment (including Profit & Loss, Balance Sheet and notes to the accounts) and management or interim accounts for the current year, if the most recent Financial Report is more than six months old.
- Provide relevant business information on the project including costs.

Please refer to the Guidelines for the complete eligibility requirements and list of ineligible applicants.

Eligible project expenditure includes any of the following activities relating to the proposed project:
- A combination of energy improvements as detailed in the On-Farm Type 2 Energy Assessment.
- Direct and contract labour costs for employees and contractors working on the implementation of identified energy
measures.
- Plant and equipment.
- Commissioning.
- Non-labour commissioning costs on fuel, spare replacement parts etc.
- Non-labour and contract costs associated with energy measurement and verification activities such as temporary site meters.
- Capital expenditure (but does not include motorised transport vehicles).
- Wheeled equipment supporting irrigation, technology advances (e.g. centre pivots and remote weeding, as identified in the On-Farm Type 2 Energy Assessment or Equivalent Energy Assessment report).
- Training specific to the technology for safe operation (external costs only).
- Minor building alterations and fit-out costs (as identified in the On-Farm Type 2 Energy Assessment).

Preference will be given to items which achieve the greatest energy efficiency and productivity.

Please refer to the Guidelines for the list of ineligible expenditure.

The main assessment criteria include:
- The extent to which the project will improve the energy efficiency and productivity of the farm business: (40%)
a) Percentage of on-farm energy efficiency and productivity savings.
b) Degree to which the project improves energy reliability.
- The extent to which the project maintains and improves the competitiveness of the farm business and contributes towards a competitive Victorian Agriculture industry: (40%)
a) Degree to which the project facilitates improved cost management.
b) Degree to which the project contributes to long term farm business sustainability.
c) Economic contribution beyond the farm business.
- The extent to which the project represents value for money: (20%)
a) Demonstration that the submitted quote represents market value.
b) Expected return on investment period – more than 2.5 and less than 8.5 years.