Community Energy Upgrades Fund – Round 2 Now Open for Applications

Published: 25 March 2025

Image source: Screenshot from business.gov.au, “Community Energy Upgrades Fund Round 2” page, accessed on 25 March 2025.

The Australian Government has officially opened Round 2 of the Community Energy Upgrades Fund, a key initiative aimed at helping local governments reduce energy costs and emissions through targeted upgrades to community facilities.

With $50 million in funding available under this round, the program will co-fund projects that improve energy efficiency and electrification of public assets such as libraries, swimming pools, sporting grounds, and community centres.

Program Overview

The Community Energy Upgrades Fund is designed to support local governments in delivering high-impact energy efficiency upgrades, helping communities save on power bills while contributing to long-term sustainability goals. Round 1 of the programs received 165 applications, resulting in 58 local councils being awarded funding.

Councils that were unsuccessful in the first round are strongly encouraged to apply again.

Key Dates and Information

• Applications Open: 4 March 2025

• Closing Date: Friday, 13 June 2025 at 5:00 PM AEST

• Funding Available: $50 million (with potential to leverage over $100 million in total project investment)

• Eligible Applicants: Local government bodies across Australia

• Application Portal: business.gov.au

Types of Eligible Projects

Projects eligible for funding may include (but are not limited to):

• Installation of heat pumps to replace energy-intensive heating systems in council-operated pools

• Upgrades to energy-efficient lighting and battery storage for sporting facilities and libraries

• Implementation of energy management systems for local public infrastructure

• Electrification of outdated fossil fuel-based equipment

Government Statements

The program is strongly backed by federal ministers:

“Local councils run many of the sport and public facilities that keep our communities and clubs thriving. This fund helps them save on energy bills and reinvest in core services.”— Hon Chris Bowen MP, Minister for Climate Change and Energy

“Every dollar saved by local governments goes back into community services. This fund delivers meaningful outcomes both economically and environmentally.”— Hon Kristy McBain MP, Minister for Regional Development, Local Government and Territories

“Local governments are on the front line of climate action. By upgrading public facilities, we can make every watt count on our path to net zero.”— Hon Josh Wilson MP, Assistant Minister for Climate Change and Energy

Conclusion

The Community Energy Upgrades Fund represents a significant opportunity for local governments to invest in cleaner, smarter infrastructure. By upgrading public facilities and reducing reliance on outdated systems, councils can achieve long-term cost savings and enhance community wellbeing.

Interested applicants are encouraged to review the program guidelines and submit their applications by the deadline. For more information, please visit the official program page: https://business.gov.au/grants-and-programs/community-energy-upgrades-fund-round-2.