Energy Efficiency Grant (EEG) for Battery Energy Storage Systems (BESS) in Singapore

Battery Energy Storage Systems (BESS) are emerging as a practical way for businesses to cut energy costs and reduce carbon emissions by replacing diesel generators and managing energy use more efficiently. In Singapore, the government’s Energy Efficiency Grant (EEG) provides funding support to encourage companies – especially Small and Medium Enterprises (SMEs) – to invest in energy-efficient equipment like BESS. This article explains how the EEG applies to BESS projects, including who is eligible, what can be funded, how much support is available, and how to apply, all in clear terms for business owners.

What is the Energy Efficiency Grant (EEG)?

The Energy Efficiency Grant (EEG) is a government co-funding program to help businesses invest in energy-efficient equipment as part of Singapore’s push towards sustainability enterprisesg.gov.sg. Under the EEG, companies can get a significant portion of the cost of approved energy efficient equipment covered by the government, which lowers the upfront investment needed. The goal is to support businesses (particularly SMEs) in saving energy and operating costs by adopting greener technologies.

Introduced initially for sectors like food services and retail, the EEG has since been expanded (from 1 April 2024) to more industries including construction, manufacturing (incl. food manufacturing), maritime, retail, and even data centre users​ gobusiness.gov.sg . BESS is one of the technologies specifically highlighted for support under this scheme – in fact, officials have pointed to battery energy storage systems as a key example of cleaner, more energy-efficient equipment that the grant is meant to promote​ m.tradelinkmedia.biz . In short, if your business plans to install a BESS to save energy (for example, using it instead of diesel generators on worksites or to manage peak electricity load), the EEG might co-fund a large part of that investment.

Who Can Apply for EEG Funding for BESS?

Industry Sectors: The EEG is only open to businesses in certain sectors. Since BESS is supported mainly as an energy-saving solution for construction and industrial use, the most relevant sector is Construction. Only construction firms registered in Singapore under SSIC codes 41–43 (general construction and civil engineering codes) are directly eligible to apply for BESS funding under the EEG​ www1.bca.gov.sg . This means contractors and builders can tap the grant for battery units to power their site operations. Other sectors eligible for EEG (like manufacturing, food services, retail, maritime, and data centres) have their own list of supported equipment, but BESS currently falls under the construction sector’s supported list.

For companies in Manufacturing or Maritime sectors, BESS is not on the pre-approved list for the base tier; however, these sectors can access the EEG’s advanced tier (explained later) for larger energy-saving projects. In theory, a manufacturing firm could seek support for a BESS under the advanced tier if it can demonstrate the required energy savings, but the straightforward path for BESS funding is through being a construction sector applicant.

Company Size (SME) and Ownership: The grant is targeted at Singapore-registered businesses with significant local ownership. To qualify, your company should have at least 30% local shareholding and at least one local employee​ enterprisesg.gov.sg ​ www1.bca.gov.sg . There is also an annual sales turnover cap of S$500 million for your group of companies​ enterprisesg.gov.sg ​ www1.bca.gov.sg – this ensures the grant mainly benefits SMEs and mid-sized firms. (By Singapore’s definition, an SME typically has annual sales not more than S$100 million or <200 employees​ enterprisesg.gov.sg .) Large enterprises above the cap are not eligible. Note that government agencies, charities, and non-business organizations do not qualify for this grant​ enterprisesg.gov.sg – it’s meant for commercial businesses.

Use in Singapore: The BESS equipment purchased must be used in Singapore operations. You cannot use the grant to buy a system for overseas use​ enterprisesg.gov.sg . Also, the applicant must be a business operating in Singapore; overseas-incorporated firms without a local entity cannot apply.

When to Apply (No Prior Purchase): It’s crucial to apply before you commit to any BESS purchase. If your company has already signed a contract, paid a deposit or invoice for the battery system before applying, the grant application will likely be rejected​ enterprisesg.gov.sg ​ enterprisesg.gov.sg . Essentially, you should get in-principle approval first. (However, after submitting the application, you may proceed to buy/install at your own risk – but if the grant isn’t approved, you won’t be reimbursed​ enterprisesg.gov.sg .) So plan to apply early, before ordering the equipment.

In summary, eligible applicants for EEG funding of BESS are Singapore-based construction (or related) companies that meet SME criteria and intend to deploy the BESS locally for energy savings. Ensure you haven’t started procurement, and that you’re not an excluded entity like a charity or government body.

What BESS Projects or Equipment Are Covered?

The EEG focuses on funding energy-efficient equipment – in the case of BESS, the grant will co-fund the purchase (or lease) of battery energy storage units that meet certain technical requirements. Under the scheme, a BESS is considered eligible if it is used to replace or reduce reliance on conventional fossil-fuel generators, thereby improving energy efficiency on-site.

Technical Requirements: To qualify, the battery energy storage system must be connected to the electrical grid and charged using grid electricity​ gobusiness.gov.sg . Charging the BESS via a mains power supply (especially tapping off-peak grid power) ensures a cleaner source of energy. Charging from diesel generators is not allowed​ gobusiness.gov.sg , since that would defeat the purpose of cutting emissions. In practice, this means the BESS should be installed in a setup where it draws power from SP Group’s grid or other renewable sources, and then displaces diesel gensets during operation. These systems essentially act as large rechargeable batteries supplying power to equipment as needed, dramatically reducing fuel use and emissions compared to running diesel engines 24/7​ gobusiness.gov.sg .

Pre-Approved BESS Models: The EEG (Base tier) uses a list of pre-approved equipment models for fast-tracked support. Several BESS products have been pre-approved for the construction sector. This includes models from vendors such as AMPD Energy (Enertainer series), Infinity Cube (a Singapore-based BESS start-up), JP Nelson, Reon, and Sany, among others​ gobusiness.gov.sg ​ gobusiness.gov.sg . For example, Ampd Energy’s Enertainer and Infinity Cube’s ES series battery units are on the approved list, meaning if you purchase those models, you automatically meet the equipment eligibility criteria. These BESS units come in various capacities (often ranging a few hundred kW) suitable for powering construction machinery, tower cranes, site offices, etc.

If you stick to one of the pre-approved BESS brands/models, it simplifies the application because the government has already vetted their energy-saving performance. Each of these models has proven to significantly lower energy consumption or diesel usage on-site. The BESS essentially replaces diesel generators on construction sites, providing clean and quiet power for equipment like cranes, hoists, welding sets, and so on​ ampd.energy ​ . The result is lower fuel costs and emissions – as one case showed, a single BESS unit on a construction project cut carbon emissions by 76% (abating ~455 tonnes of CO2) and reduced operating costs by 15% by displacing diesel use​ ampd.energy ​  .

Non-Pre-approved Equipment (Advanced Projects): What if you want to use a BESS that’s not on the list, or a larger custom energy storage installation? The EEG has an Advanced tier for projects that deliver exceptional energy savings. Under the advanced tier, the equipment doesn’t need to be one of the pre-approved models, but you must demonstrate that the BESS will achieve at least 350 tonnes of CO₂e in lifetime carbon abatement (i.e. significant energy savings over its life)​ m.tradelinkmedia.biz . This is a high bar – 350 tCO₂e is roughly equivalent to saving ~1.4 million kWh of electricity over the equipment’s life. Large-scale BESS deployments or multiple-unit projects might meet this. If you go this route, you’ll likely need to provide calculations or documentation of the expected energy savings in your application. The advanced tier is primarily available to the construction, manufacturing and maritime sectors for now​ enterprisesg.gov.sg . So a non-construction company (e.g. a port operator or factory) could potentially apply for a BESS under advanced tier if they can show the required savings. For most SMEs looking at a single BESS unit, though, the base tier with a pre-approved model is the straightforward path.

To summarize, eligible BESS projects under EEG are those where you deploy a grid-charged battery storage system to improve energy efficiency (e.g., replace diesel generators or shift load). Using a pre-approved BESS model makes it easy to qualify. Ensure the system is installed according to requirements (grid charging, used in Singapore) and you’ll be able to get funding support for the cost of the BESS hardware.

How Much Funding Can You Get?

One big attraction of the EEG is the generous funding support level, especially for SMEs. Here are the key funding details as they apply to BESS investments

• Support Rate (Base Tier): If your company qualifies as an SME, the government will co-fund up to 70% of the cost of the BESS​ m.tradelinkmedia.biz . Non-SME larger firms (still within eligibility criteria) get up to 30% co-funding. This support level is available until 31 March 2026​ m.tradelinkmedia.biz . In practical terms, an SME can save 70% off the purchase price of an approved BESS unit, significantly lowering the payback period. For example, if an approved BESS costs S$50,000, an SME might get S$35,000 covered by the grant (subject to the cap per company). These rates may be reviewed after Mar 2026, but as of now this window is the opportunity to enjoy the higher co-funding support.
  
• Funding Cap (Base Tier): Each company can receive up to S$30,000 under the base tier​ m.tradelinkmedia.biz . This is a per-company cap across all your base tier EEG applications. It means if you buy one BESS and get, say, S$30k funded, you’ve hit the cap (you could still apply for other equipment but you won’t get more base tier funds beyond $30k). If the BESS is cheaper such that 70% comes out to less than $30k, you could potentially apply for another piece of equipment until the total hits $30k. But $30k is the maximum reimbursement at base tier.
  
• Advanced Tier Support: For larger projects (meeting the ≥350 tCO₂e savings criteria), the Advanced tier allows up to S$350,000 of funding support per company (this $350k includes any amount you took from the base tier)​ m.tradelinkmedia.biz . The support rate for advanced tier is a bit nuanced – it will be the lower of (a) the usual support rate (70%/30%) or (b) a grant amount calculated based on the BESS’s projected lifetime energy savings​ m.tradelinkmedia.biz . In essence, they won’t give more than 70% of cost, and also won’t give more than what makes sense for the energy savings. If you already utilized the base tier, that counts toward the $350k cap. For example: if you received $30k under base tier for a BESS, then the remaining ceiling for advanced tier projects is $320k for your company​ m.tradelinkmedia.biz . The advanced tier is really aimed at companies investing in multiple units or very high-impact systems (e.g., a few hundred thousand dollars’ worth of equipment with huge energy savings). Most SME applicants for a single BESS will not need to go this route unless the system is extremely large.
  
• Funding for Purchase vs Lease: The EEG funding can apply whether you buy the BESS outright, lease it, or use hire-purchase arrangements​ gobusiness.gov.sg . The grant will typically cover a portion of the cost in all those cases (for leases, it might cover the lease cost up to the cap). This flexibility is useful – for instance, a construction SME could choose to lease a BESS unit and still get 70% of the lease cost subsidized for the year.
  
• What Costs are Covered: The grant covers the cost of the equipment itself. It does not cover related fees like delivery, installation or other administrative charges​ enterprisesg.gov.sg . So when planning your budget, note that you’ll bear those ancillary costs. The reimbursement you get will be based on the price of the BESS unit (as per vendor invoice) up to the allowed support rate/cap.
  
• Timeline and Deadlines: The EEG is available from 1 April 2024 until 31 March 2026 for applications​ enterprisesg.gov.sg . You should ideally apply as early as needed, because any purchases must be completed and claims submitted within 1 year from approval​ enterprisesg.gov.sg . There isn’t a monthly or yearly quota mentioned, but since policies can change after 2026, it’s wise for interested companies to tap the grant during this window. Keep in mind the grant scheme’s co-funding levels are also promised until March 2026​ m.tradelinkmedia.biz , after which they might be adjusted. As of now, no specific “first-come first-served” budget limit is stated publicly, but companies are encouraged to apply sooner rather than later in case of any changes.

In short, an eligible SME can get 70% of their BESS cost subsidized, capped at $30k for the base tier. This is a substantial saving, effectively shouldering most of the cost of a typical battery system unit. Larger projects can potentially get up to $350k if they achieve massive energy savings. Always verify the current support rates on official sources, but the figures above are current as of now​ enterprisesg.gov.sg.

How to Apply for the EEG (Step-by-Step)

Applying for the Energy Efficiency Grant is a straightforward online process. Here’s a practical step-by-step guide tailored for a BESS application:

1.Check Your Eligibility: Ensure your business meets the criteria. Confirm your SSIC industry classification (e.g. construction 41–43) qualifies, you have ≥30% local ownership and under S$500M turnover, and you haven’t bought the BESS yet. It’s also a good idea to identify under which sector and category your application will be filed (for BESS, if you’re construction, it will be under BCA as the administering agency​ enterprisesg.gov.sg ).

2.Select an Eligible BESS and Get a Quote: Research the pre-approved BESS models on the official GoBusiness portal​ gobusiness.gov.sg . Choose a system that suits your needs (capacity, power, etc.) from the list. Contact the supplier or distributor of that system to get a formal quotation. The quote should itemize the cost of the equipment (since only that is fundable)​ enterprisesg.gov.sg . If you plan to lease, get a lease cost proposal. At this stage, you may also request product specifications or brochures from the vendor – these will be needed for your application​ enterprisesg.gov.sg .

3.Prepare Supporting Documents: Gather the required documentation to submit with your application. Typically, you should prepare: 

• The vendor quotation for the BESS (with cost breakdown)​ enterprisesg.gov.sg .
  
• Product brochure or technical specifications of the BESS model (to show it meets technical requirements).
  
• Proof of where the BESS will be deployed: for construction, this could be a work site project sheet, work order, or relevant contract/permit for the site. (In other sectors like retail, a tenancy agreement is needed, but for a construction site you might use a contract or lease of site yard)​ enterprisesg.gov.sg .
  
• Recent utility bill or evidence of site if applicable (to show there is a facility where the equipment will run – this may not always be asked for construction, but it’s listed generally)​ enterprisesg.gov.sg .
  
• Company’s financial statements or latest management accounts (to verify the company meets the financial criteria, if required)​ enterprisesg.gov.sg .
  
• Corporate structure details if your shareholding setup is complex (sometimes needed for group turnover calculation)​ enterprisesg.gov.sg . Basically, be ready to prove you are a legitimate business with a legitimate project for the BESS.

4.Submit Application on Business Grants Portal: All EEG applications are done through the online Business Grants Portal (BGP)​ enterprisesg.gov.sg – a one-stop portal for government grants. Log in to the BGP using your CorpPass (a corporate digital identity login). Once in, create a new grant application. You’ll need to:
Select the grant type (Energy Efficiency Grant – Base or Advanced as applicable).

• Select your sector (e.g. “Construction”) – the system will route your application to the correct agency (BCA in this case)​ enterprisesg.gov.sg .
• Select the equipment category and model. For BESS, look for “Battery Energy Storage System” in the list of supported equipment for your sector and choose the specific model from the dropdown (if it’s pre-approved) or specify the details if applying under advanced tier.
• Fill in details like the cost, the vendor, and how it will be used (there may be fields asking how it improves efficiency – for BESS you can explain it replaces diesel generators and saves fuel).
• Upload the supporting documents (quotation, brochure, etc.) as requested in the form.

The GoBusiness site provides a step-by-step application guide which you can refer to while filling the form​ enterprisesg.gov.sg . Ensure all required information is complete to avoid delays.

5.Review and Submit: Double-check all details in your application. Common pitfalls include selecting the wrong sector or equipment category – if that happens, agencies might ask you to resubmit correctly​ enterprisesg.gov.sg . Make sure the cost in the application matches the quotation and that you’ve not paid anything yet  (there’s usually a declaration of no prior payment)​ enterprisesg.gov.sg . Once everything is in order, submit the application through the portal. You should receive an acknowledgement from the system.

6.Wait for Outcome: The processing time can vary; typically it might take a few weeks for the agency to review. They may contact you for clarifications or additional info. If your application is approved, you’ll get a Letter of Offer (LoO) outlining the grant amount approved and terms. You need to accept this offer in the portal. If it’s rejected or queried, you’ll be informed as well – you might be able to address any issues and re-apply if needed.

7.Purchase and Deploy the BESS: Once you have the approval (or even while waiting, as long as you’re confident), proceed to purchase and install the BESS. Remember, you have at most 12 months from approval to install and submit your claim​ enterprisesg.gov.sg . Coordinate with your vendor to deliver and set up the unit at your site. After installation, keep evidence like dated photos of the BESS in use at your site, the serial number, etc., as these will be needed for the claim​ enterprisesg.gov.sg . Also retain the final invoices and proof of full payment (receipt, bank statements for the payment)​ enterprisesg.gov.sg .

8.Submit Claim for Reimbursement: Through the Business Grants Portal, you will lodge a claim to get the grant disbursed after implementation. In the claim, you attach:

• The invoice from the vendor (showing the BESS model and cost).
• Proof of payment (e.g. bank transfer slip, cheque image, or bank statement highlighting the payment to the vendor)​ enterprisesg.gov.sg . 
  
• Photos of the BESS installed and operational on your site (with identifiable context) and a photo of the equipment serial number​ enterprisesg.gov.sg . 
  
• Any other documents the portal lists for claims. Submit the claim before the deadline (the claim due date will be indicated, generally within 1 year). If you need more time, you must apply for an extension before the claim deadline​ enterprisesg.gov.sg.
  

9.Receive Grant Payment: Once the claim is reviewed and approved (they may visit the site or do checks if necessary), the grant amount will be disbursed, usually via GIRO to your company’s bank account. This will cover the agreed percentage of the cost as per the Letter of Offer, up to the cap.

Throughout the process, if you encounter issues, you can reach out to the administering agency (for construction sector, BCA has an email BCA_EEG_admin@bca.gov.sg​ www1.bca.gov.sg for queries). Also, the GoBusiness portal FAQ and guide pages are useful references​ enterprisesg.gov.sg .

Important Tips: Ensure the vendor quotation clearly separates the cost of the BESS unit from any non-fundable items​ enterprisesg.gov.sg . If you change your mind and want to buy a different model or from a different vendor after approval, note that you will likely need to submit a fresh application for the new equipment​ enterprisesg.gov.sg – so it’s best to decide firmly upfront. Plan the project such that you can deploy and claim within a year to avoid any lapse. By following the above steps carefully, SMEs can smoothly obtain the EEG support for their BESS projects.

Cranes at a construction site in the early evening. Battery Energy Storage Systems can provide clean, quiet power for such sites, reducing the need for diesel generators.

Restrictions, Exclusions, and Deadlines to Note

When using the EEG for a BESS project, keep in mind a few additional restrictions and conditions:

• No Residential or Home Use: The grant is meant for business operations only. Home-based businesses or equipment deployed at residential addresses are not eligible​ enterprisesg.gov.sg . For example, you cannot claim a BESS that is installed in someone’s house – it must be for a business/industrial site.
• Equipment Holding Period: You are generally required to retain ownership and use of the funded equipment for at least 1 year after the final claim approval​ enterprisesg.gov.sg . This means you shouldn’t sell off or dispose of the BESS within a year of getting the grant, or you might have to return the funds.
• Avoid Double Funding: The government typically will not fund the same item twice. You cannot use EEG in conjunction with another government grant for the exact same BESS purchase. Each piece of equipment should only benefit from one grant scheme at a time. (While this isn’t explicitly stated in the cited text, it’s a general rule across grants.)
• One Company, One Application at a Time: Each application is typically for one equipment type/model. If you plan to adopt multiple different equipment under EEG (say a BESS and an electric excavator), you’d submit separate applications for each type​ enterprisesg.gov.sg . You also cannot pool multiple companies to buy one BESS; the applicant should be the one using the equipment.
• Advanced Tier Considerations: If you’re applying under the advanced tier for a non-pre-approved BESS, ensure you have robust calculations of energy savings. Applications for advanced tier will not be accepted if the projected grant quantum (based on savings) is less than $30k​ www1.bca.gov.sg . In other words, very small projects don’t qualify for advanced tier; you’d just stick to base tier in that case.
• Administering Agency: Note which agency handles your sector’s applications. For BESS under construction, it’s administered by BCA (Building and Construction Authority)​ enterprisesg.gov.sg . They are the ones who will approve and disburse the grant. This matters if you need specific clarifications – for instance, BCA has published a circular and FAQs for the construction sector’s use of EEG. Other sectors are handled by agencies like NEA, Enterprise Singapore, MPA, etc., but since BESS is under construction category, BCA is your point of contact.
• Deadline: Once again, remember the EEG is time-limited until 31 March 2026​ enterprisesg.gov.sg for new applications (at least for the current scheme iteration). There is no announced deadline beyond that yet, but it’s safest to assume you should apply by then. Also, if you get an approval, the clock starts for you to make the purchase and claim within a year. If a company fails to claim in time, the grant might lapse (though extensions can be requested with valid reasons)​ enterprisesg.gov.sg .

Staying within these rules will ensure you can successfully receive the grant and not run into issues during audits or verifications. All grants come with terms in the Letter of Offer – read them carefully when you accept the grant, so you’re aware of obligations (like reporting usage if required). Overall, as long as you use the BESS as intended (for energy efficiency, in Singapore, for at least a year) and follow the process, the EEG funding is a straightfoward benefit.

Real-World Examples and Success Stories

The push for cleaner energy in business operations is already showing results in Singapore. Battery Energy Storage Systems have been piloted and adopted by forward-looking firms, demonstrating the kind of outcomes the EEG is designed to encourage.

One notable example is from City Developments Limited (CDL), a major developer, which deployed a BESS unit (the Ampd Enertainer) at the construction site of the Irwell Hill Residences condominium. This battery system took over the role of traditional diesel generators. The results were impressive – it abated 455 tonnes of CO₂ emissions (a 76% reduction) and reduced operating costs by about 15% at that site, while also eliminating the noise and particulate pollution from diesel engines​​ ampd.energy . Following that success in 2022, CDL expanded the use of BESS to five other project sites. Such real-world data underscores how effective BESS can be in greening construction operations. With the EEG co-funding now available, even smaller contractors can attempt similar transitions knowing that up to 70% of the cost of these battery systems can be covered.

Another example is Infinity Cube, a local Singapore start-up that developed its own lithium-ion BESS for construction sites. According to reports, Infinity Cube’s systems (which are now pre-approved under EEG) have collectively helped reduce over 20,000 tonnes of CO₂ across more than 20 projects where they were deployed​ tradelinkmedia.biz . This highlights that multiple construction projects – likely including SME contractors – have already begun using BESS to cut emissions and fuel use. The availability of EEG funding is expected to spur even wider adoption. The government has actively worked with industry groups (like the Singapore Contractors Association and Singapore Green Building Council) to identify these impactful technologies and facilitate their uptake​ choonhuat.com.sg . In public announcements, leaders have specifically mentioned battery energy storage systems alongside electric construction machinery as examples of equipment that qualify for the grant​ m.tradelinkmedia.biz . This shows strong support at the policy level. In practical terms, even a modest construction firm running a site can now consider replacing its diesel generators with a BESS – for instance, using a unit like the ones from Ampd or Infinity Cube – and get most of the cost refunded via EEG. Early adopters have reported not only fuel savings but also productivity gains (less time refueling or maintaining gensets) and a quieter work environment, which is a bonus for sites near residential areas​ ampd.energy . It’s worth noting that while many case studies so far feature larger companies or pilot projects, the EEG is designed to help SMEs jump on this bandwagon. The grant lowers the financial barrier, so success stories going forward could include small and medium contractors leveraging BESS on their sites. We can expect to see more examples in the next couple of years as firms make use of the scheme. Businesses that do so not only reduce their energy bills and carbon footprint, but also signal to clients and partners that they are committed to sustainable practices – which can be a competitive advantage in an era of green building and ESG awareness.

Conclusion and Next Steps

Battery Energy Storage Systems present a game-changing opportunity for businesses in Singapore – especially in the construction industry – to improve energy efficiency and sustainability. The Energy Efficiency Grant (EEG) is a practical support mechanism that makes investing in BESS much more affordable, by covering up to 70% of the cost for eligible companies. SMEs that might have hesitated due to high upfront costs should strongly consider leveraging this grant to upgrade their operations with cleaner energy solutions.

If your business fits the criteria and has use for a BESS (for example, to power a construction site, a shipyard operation, or even as backup for critical systems in manufacturing), the EEG can significantly offset the cost. Check the official resources for the latest details – Enterprise Singapore and BCA provide information on the scheme. You can verify the list of supported BESS models and detailed FAQs on the GoBusiness portal​ gobusiness.gov.sg , and when ready, apply through the Business Grants Portal​ enterprisesg.gov.sg using your CorpPass.

By tapping on the EEG for a BESS project, businesses not only get funding but also join the national effort in energy conservation and carbon reduction. With generous support available until 2026, now is an excellent time to make the move towards energy storage and efficiency. Companies that have done so are already reaping savings and operational benefits. With the information and examples provided above, you can confidently navigate the application process and unlock the benefits of BESS for your own operations – with the government footing a good part of the bill.