The $100 million Community Energy Upgrades Fund (CEUF) is a competitive grant initiative designed to support local governments in upgrading their facilities to be more energy-efficient, reduce carbon emissions, and cut energy costs. This funding aims to assist in making existing local government buildings—such as sports fields, libraries, and community centers—more sustainable by funding energy upgrades like heat pumps, energy-efficient lighting, and battery storage solutions.
By enhancing energy performance, the CEUF will contribute significantly to Australia’s ambitious climate goals, which include reducing emissions by 43% by 2030, achieving net-zero emissions by 2050, and reaching 82% renewable electricity generation by 2030. It also aligns with the National Energy Performance Strategy, strengthening the country’s commitment to energy efficiency.
The CEUF is part of a broader effort by the government to boost energy efficiency, complementing the $1.6 billion Energy Savings Package from the 2023-24 Budget, which funds energy upgrades for homes and businesses.
CEUF Grant Rounds
The CEUF will distribute funding through two main grant rounds:
Round 1 (Closed): Opened on 21 December 2023 and closed on 30 April 2024. Successful applicants were announced on 20 February 2025. This round allocated $50 million to support 58 local government bodies across Australia for energy efficiency and electrification projects.
Round 2: This round opens for applications on 4 March 2025 and closes on 13 June 2025 at 5:00 PM AEST. Local government bodies are encouraged to apply for co-funding to improve energy efficiency in their facilities. Grant opportunity guidelines and other essential documents can be accessed on the business.gov.au grant page.
Eligibility and Application Process
To apply for the CEUF, local governments must meet specific eligibility criteria. The program is open to:
- Local government bodies with an Australian Business Number (ABN).
- Joint local government bodies with an ABN.
The targeted facilities for upgrades must be owned, managed, or leased by the local government at the time of application.
It’s important to note that each local government is eligible for one grant per program cycle, with unsuccessful applicants from Round 1 able to apply in Round 2. However, successful Round 1 applicants are not eligible for further funding in Round 2.
Knowledge Sharing and Community Benefits
Successful applicants are expected to share the outcomes and knowledge gained from their projects to benefit the wider community and enhance local government capacity to undertake future energy upgrades. This will help foster broader sustainability efforts across local communities.
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