Agriculture Energy Investment Plan – On-Farm Energy Grants Program: Tier 3

This program aims to support energy projects of a strategic nature that benefit multiple farm businesses and make a positive contribution to the region. 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.

The purpose of the Tier 3 grants is to:
- Encourage strategic energy projects with multiple beneficiaries, delivered through a partnership approach, that are scalable and replicable across other regions or farm types.
- Leverage opportunities for co-investment with industry, with clearly designed outputs and outcomes, while encouraging collaboration between businesses to achieve value for money from government funding.

Grants between $250,000 and $1 million (excluding GST) are available. A minimum private cash contribution of 50% is required. It is anticipated projects will have a higher than 50% private contribution.

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.
- Be an investor in or 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% private cash contribution, and provide evidence of that 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.
- Agree to participate in future program evaluation activity.
- Undergo a Financial Risk Assessment to ascertain financial risk exposure.
- Provide audited financial reports for the last three financial years to enable the department to conduct a Financial Risk Assessment (FRA) (including Profit & Loss, Balance Sheet and notes to the accounts) and management or internal accounts or the current year, if the most recent Financial Report is more than six months old.

All applicants must be financially viable in order to be eligible for a grant.

Eligible project include, but are not limited to:
- Microgrid installation which supports a whole sub-sector.
- Bioenergy opportunities such as a large scale biodigester for multiple farm businesses in a region.
- Renewable energy (multiple types) to accommodate an agriculture precinct, (e.g. large scale horticulture in temperature controlled glasshouses).

Preference will be given to projects:
- With more than 20% improvement in energy efficiency and/or productivity.
- Supporting a reduction in negative environmental impacts.
- Which incorporate energy usage data measuring or monitoring systems.

The main assessment criteria include:
- The extent to which the project will improve energy productivity (electricity/gas/LPG/diesel), through the implementation of some or all the energy efficiency measures identified through an energy assessment across multiple sites. (40%)
- The contribution of the proposed project to competitiveness of the agriculture sector and/or regions. (30%)
- The need for government support, and the capacity and capability of the applicant to undertake the project. (30%)

Please refer to the Guidelines for the complete list of the assessment criteria.