On-farm energy tier 2 grants
Tier 2 grants are now open
The application deadline for on-farm energy grants available to primary producers has been extended to 30 June 2020 or until funding is exhausted (whichever comes first).
Grants will be provided on a “dollar for dollar” cash co-contribution basis. Recipients are required to contribute at least 50 per cent of the total cash costs of the project.
You will need a valid on-farm energy assessment conducted in the past two years to access Tier 2 grants available under the Agriculture Investment Energy Plan (AEIP).
Free on-farm energy assessments are available under the AEIP if you apply before 31 March 2020.
You can also access an AEIP grant if you’ve had an equivalent certified on-farm energy assessment.
Learn more about preparing your documentation.
- On-Farm Energy Tier 2 Grants – Program Guidelines (PDF - 1.2 MB)
- On-Farm Energy Tier 2 Grants – Program Guidelines (WORD - 1.4 MB)
If you have any questions about the application, please email the Agriculture Victoria team at email@example.com or call the Customer Service Centre on 136 186.
To be eligible for an on-farm tier 2 grant, farmers must meet all the following criteria:
- Be a legal entity; 1
- 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; 2
- Attest to having obtained all relevant regulatory permits and approvals for the project to commence (where applicable); 3
- Meet all industrial relations obligations as an employer in accordance with the National Employment Standards;
- Have at least three (3) 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 4 5 6
- Provide relevant business information on the project including costs.
1 A legal entity includes an incorporated association or a company.
2 Evidence of a contribution includes evidence of support from the Board or business that it can undertake the project and meet its co-contribution costs, and one of the following i) an approved loan facility (including loan amount), or ii) cash at bank (current bank statement) or iii) management accounts demonstrating satisfactory cash flow or liquid assets.
3 Exceptions may be granted in extraordinary circumstances and will be negotiated on a case by case basis.
4 Financial Risk Assessments are undertaken by the department to establish the financial risk exposure of the applicant, and whether the applicant is likely to remain financially viable over the duration of the project.
5 It is the applicant’s responsibility to ensure all requested documentation is supplied to the department. Failure to do so may result in the application being rejected.
6 If the applicant’s accounts are not audited, the department will accept unaudited accounts, which have been prepared by their accountant.
Preparing your on-farm energy tier 2 grant documentation
The documents you will need for the application are:
- A minimum of one itemised quote for all equipment items and/or fit-out costs identified in the energy assessment report;
- An itemised energy assessment report that relates to your equipment requirements for individual applicants that have received a group on-farm energy assessment;
- A copy of an equivalent energy assessment, if not undertaken through the Agriculture Energy Investment Plan;
- Documentation required for undertaking a Financial Risk Assessment report.
Applicants may be contacted by the department to provide additional supporting documentation.
The department reserves the right to request additional information from applicants on quoted prices to ensure competitive market rates.
Applications can only be submitted online.
Supporting documents like quotes, will need to be uploaded electronically with the application form online.
If you have joined our mailing list you will receive emails about initiatives as they become available.
If you apply for an on-farm energy assessment, you will receive updates on the plan as information becomes available, via the contact details you provide in your application.
Frequently asked questions
When can I apply to get an on-farm energy tier 2 grant?
Applications are now open and accessibile from this website.
Do I need an on-farm energy assessment before I can apply for a grant?
Yes. To be eligible for the grants program, you will need to have an on-farm energy assessment completed through the Agriculture Energy Investment Plan program or have been advised by us that your previously completed assessment is valid.
The on-farm energy assessments will form the basis of the grant application and recommend what systems will improve energy productivity.
If you do not have a current on-farm energy assessment, free assessments are available through the Agriculture Energy Investment Plan program.
Once an assessment is completed, what happens next?
The assessment report will provide you with advice and a plan to improve on-farm energy efficiency and productivity, which may not require any further up-front investment.
Once you have reviewed your report, you might elect to implement simple changes in management practices or decide to apply for a grant which could help you implement equipment updates identified in the assessment.
Can I get a grant for piece of equipment that is not identified in the On-farm Energy Assessment?
No. Tier 2 grants support improvements across farm systems. However, all items and systems need to be identified in the on-farm energy assessment.
What is a Financial Risk Assessment and what do I need to provide?
Financial Risk Assessments are undertaken by the department to establish the financial risk exposure of the applicant and whether the applicant is likely to remain financially viable over the duration of the project.
The department will require audited financial reports for the last three financial years. These should be the ‘final accounts’ with Directors’ Report and Declaration and should include:
- Profit and Loss Statement
- Balance Sheet
- Cash Flows
- Notes to the accounts.
Will I be required to provide a business case?
You will be required to provide the current farm business plan, or project proposal.
Do I need to have all planning permits in place before applying for a grant?
Yes. It is recommended you check with your local council to identify if any permits are required. If you are installing solar panels connected to the grid you will also need to contact the electricity distribution business for approval.
There may be other permits you require, and it is your responsibility to identify and obtain all necessary permits.
The equipment I want to purchase will cost $550,000. How much funding can I apply for?
The government will provide up to 50 per cent of the cost. On-farm energy tier 2 grants can provide $50,000 to $250,000 (excluding GST) for on-farm energy projects.
If the total cost of project expenditure is $550,000 (excluding GST) the government grant can provide up to $250,000 (excluding GST) and the remaining $300,000 (excluding GST) must be covered by the recipient.
The project will cost $300,000 can I apply for a $250,000 grant?
No. The government will only provide up to 50 per cent of the cost. For a project of $300,000 the maximum grant funding that may be available is $150,000.
I have two farms, can I get two separate grants?
Applicants conducting eligible farm businesses across multiple geographical sites in Victoria and/or under multiple ABNs or through multiple legal entities are eligible to apply for funding.
In order to meet the objective of maximising the number of eligible farm businesses that achieve energy efficiency gains under the Agriculture Energy Investment Plan, applicants will need to demonstrate that each eligible farm business is being conducted as a separate farm business to warrant multiple applications for a grant.
The eligibility of applicants to receive more than one grant in these circumstances will be considered by the department on a case-by-case basis and the department’s decision will be final.
Are there any restrictions on how I can raise my share of the project?
Yes. Funding from other government programs (State, Local or Federal) cannot be used to fund the farmer's share of the project.
How long do I have to use my grant?
Projects must be completed within twelve (12) months from the date of the grant agreement unless otherwise agreed by the department.
When does payment of a grant occur?
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 (up to three) instalments. The request for a grant to be paid in instalments must be made at the application stage.
Do I have to participate in post project evaluation?
Yes. All recipients must agree to comply with the department’s performance monitoring and evaluation rules. All recipients will also be requested to complete a post-Project evaluation demonstrating the energy efficiency and/or productivity outcomes achieved.
What is a legal entity?
A legal entity is an association, corporation, trustee of a trust, or individual that has legal standing in the eyes of the law.
A legal entity has legal capacity to enter into agreements or contracts, assume obligations, incur and pay debts, sue and be sued in its own right, and to be held responsible for its actions.