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On-Farm Energy Tier-3 Grants

Supports energy projects of a strategic nature that benefit more than a single farm business and make a positive contribution to the region.

Program overview

On-Farm Energy Tier 3 Grants are now available. 

On-Farm Energy Tier 3 Grants of $250,000 to $1 million (excluding GST) will provide financial support for strategic projects of regional or state-wide significance. On-Farm Energy Tier 3 projects must demonstrate significant improvement in energy productivity to multiple farm businesses. 

Examples of potential projects include microgrid installations which support a whole sub-sector, bioenergy opportunities such as large-scale bio-digesters for multiple farm businesses in a region, and renewable energy to accommodate agriculture precincts e.g. large scale horticulture in temperature controlled glasshouses.

Currently open for Expressions of Interest (EOI)

Project proposals relevant to tier 3 grants can be submitted to DEDJTR through an EOI. Further details and access to the EOI form are available from Agriculture Victoria.

Program Guidelines - Tier 3 Grants (PDF 1229.34 KB)PDF icon

Program Guidelines - Tier 3 Grants (DOCX 1397.89 KB)DOCX icon 

At a glance

What is an On-Farm Energy Tier 3 Grant?

On-farm Energy Tier 3 Grants are available to eligible primary producers. 

On-Farm Energy Tier 3 grants will provide support for energy projects of a strategic nature that benefit multiple farm businesses and make a positive contribution to the region. 

Government funding of $250,000 to $1 million excluding GST will be available for projects under the On-Farm Energy Tier 3 Grant program. A minimum private cash contribution of 50 per cent is required. It is anticipated On-Farm Energy Tier 3 projects will have a higher than 50 per cent private contribution.  

On-Farm Energy Tier 3 Grants form part of the Victorian Government's Agriculture Energy Investment Plan.

Potential value of support 

Government funding of $250,000 to $1 million (excluding GST) will be available for grant proposals under this program. Recipients are required to contribute at least 50 per cent of the total cash costs of the project.

Eligibility

On-Farm Energy Tier 3 Grants may be  available to eligible primary producers who are recipients of an On-Farm Energy Type 2 Assessment.

For full details and how to apply, please visit the On-Farm Energy Assessment application page

Further grant eligibility criteria

Eligibility criteria

To be eligible for an On-Farm Energy Tier 3 Grant farms must:
  • be a legal entity1
  • 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 per cent private cash contribution, and provide evidence of the contribution2
  • 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
  • Agree to participate in future program evaluation activity
  • Undergo a Financial Risk Assessment4 to ascertain financial risk exposure5 
  • 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 old67
  • Provide relevant business information (eg. business case, feasibility study) on the project including costs.
All applicants must be financially viable in order to be eligible for a grant.

What documentation will be required for the application?

The initial proposal for an On-Farm Energy Tier 3 Grant will be via an Expression of Interest (EOI).

Applicants will be contacted by DEDJTR to discuss their proposals in more detail. Following consideration of an EOI, eligible applicants with suitable projects may be invited to apply for a grant.

Applicants will be required to provide information on the project-based requirements of the proposal (these may be in an existing business case).

Project-based requirements include:

  • capital costs
  • energy cost savings
  • return on investment period (simple)
  • assumptions, including tariff prices
  • delivery plan

How many On-Farm Energy Tier 3 Grants are available?

On-Farm Energy Tier 3 Grants are available to eligible primary producers until March 2020 or until available funding is exhausted (whichever occurs first).

How do I apply?

Please ensure you read the Program Guidelines below for a full explanation of the application and program evaluation process.
 

If you're unsure about your eligibility or have a question about the application process please call the Customer Service Centre on 136 186.

You can express your interest via this link on the Agriculture Victoria website.

Documents to be provided

PLEASE NOTE: Once your EOI is submitted, you will be contacted by the Department to discuss your proposal. If suitable, you may be required to provide information on the project-based requirements of the proposal which may include providing an existing business case.


A legal entity includes an incorporated association or a company.
Evidence of a co-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. 
Exceptions may be granted in extraordinary circumstances and will be negotiated on a case by case basis.
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.
Applicants may be required to submit audited financial accounts for the previous three (3) years, plus interim accounts if the financial accounts are over six (6) months old.
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.
If the applicant’s accounts are not audited, we will accept unaudited accounts, which have been prepared by their accountant.

To get the best results, get in touch with the Business Victoria hotline on 13 22 15 or email us.
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