If you run a shop, restaurant, salon or any small business in Singapore, the Government will pay for up to 70% of a new energy-efficient aircon system through the Energy Efficiency Grant (EEG), capped at S$30,000 per company. Most business owners we speak to have never heard of it.
We install pre-approved 5-tick systems for commercial customers every week, and the same questions come up every time. So this is the full rundown: what the EEG covers, whether you qualify, and the one mistake that disqualifies businesses before they even start.
What is the Energy Efficiency Grant (EEG)?
The EEG is a government grant that co-funds energy-efficient equipment for Singapore businesses. Aircon is the big one, but it also covers LED lighting, refrigerators, water heaters and more. You apply through the Business Grants Portal (BGP), the same portal used for other government grants.
For aircon, the Base Tier is what matters to most SMEs:
| Support for SMEs | Up to 70% of equipment cost |
| Support for non-SMEs | Up to 30% |
| Cap | S$30,000 per company |
| Qualifying equipment | Pre-approved models only |
| Payment modes | Direct purchase, hire purchase, or lease |
| Current deadline | 31 March 2027, with the Base Tier expanding to all sectors until 31 March 2028 |
In real numbers: a 4-unit commercial multi-split installation costing S$8,000 could come down to around S$2,400 for an eligible SME. That is not a typo.
Who qualifies for the EEG?
The grant currently covers six sectors. For aircon claims, these three come up most often:
- Retail (SSIC 47): shops, minimarts, boutiques, salons
- Food services (SSIC 56 or 68104): restaurants, cafes, caterers. You also need a valid SFA licence
- Manufacturing (SSIC 10 to 32): factories, workshops, food production
Construction, maritime (port) and data centres are covered too. Whatever the sector, your business must be registered and operating in Singapore, have at least 30% local shareholding, and group annual turnover of no more than S$500 million.
The higher 70% rate is for SMEs. In general that means group annual turnover under S$100 million, or fewer than 200 employees.
One more thing worth knowing. At Budget 2026, the Government announced that the EEG Base Tier will be expanded to all sectors and extended to 31 March 2028. So even if your SSIC code does not fit today, it probably will soon. Details are expected later this year.
Which aircon models qualify?
Not every aircon qualifies. The unit must be on the Government’s pre-approved list for your sector. In practice that means:
- 5-tick energy rating for single-split and multi-split systems
- Minimum 3-tick for 3-phase variable refrigerant flow (VRF) systems
The pre-approved list includes the brands we already install daily: Daikin, Mitsubishi Electric, Mitsubishi Heavy Industries, Panasonic, Toshiba, LG, Samsung, Midea, Hitachi, Fujitsu, Gree and others. Popular commercial models like the Daikin MKC70WVMG multi-split are on the list.
Indoor units that are compatible and packaged with a pre-approved outdoor unit are supported as well, which is how most real multi-split aircon installations are set up anyway.
How to apply, and the mistake that disqualifies you
Here is the part that catches business owners out: you must apply for the grant BEFORE you buy or install anything. The rules say the project must not have commenced at the time of application. Sign an invoice first and you have disqualified yourself.
The correct order:
- Check your eligibility. SSIC code, local shareholding, turnover.
- Get a quote for a pre-approved model. We do a free site survey and quote you 5-tick systems from the pre-approved list, sized correctly for your space, with the exact model numbers the application needs.
- Apply on the Business Grants Portal with your Corppass. Upload the quotation.
- Wait for approval. You are allowed to purchase after submitting, but if the application fails you cannot claim, so most businesses wait.
- Purchase, install and claim. You have up to 1 year from approval to install the equipment and submit your reimbursement claim.
Why it’s worth doing now
Commercial aircon runs 10 to 12 hours a day. Upgrading an old 2-tick system to a 5-tick inverter system typically cuts aircon energy use by 30 to 40%, and that is before the Government pays up to 70% of the hardware. Between the grant and the monthly savings on your SP bill, a new system pays for itself faster than it ever has.
The EEG is confirmed until 31 March 2027 and expanding until 2028, so there is a window. But the cap is per company and approvals take time. If your compressors are on their last legs, apply before the next breakdown forces an emergency purchase that will not qualify.
Frequently asked questions
How much can my business save with the EEG aircon grant?
Eligible SMEs get up to 70% of the cost of pre-approved energy-efficient aircon systems co-funded, capped at S$30,000 per company. Non-SMEs get up to 30%.
Can I buy the aircon first and claim later?
No. The project must not have commenced when you apply. Apply on the Business Grants Portal first, then purchase. You have 1 year from approval to install and claim.
Which aircon brands are pre-approved?
Daikin, Mitsubishi Electric, Mitsubishi Heavy Industries, Panasonic, Toshiba, LG, Samsung, Midea, Hitachi, Fujitsu, Gree and more. Specific 5-tick models only. We confirm the exact eligible models for your setup during a free site survey.
Does the EEG cover installation costs?
The grant supports the equipment under direct purchase, hire purchase or lease arrangements. Your quotation should itemise the pre-approved equipment clearly. We prepare EEG-ready quotations with exact model numbers.
My business isn’t in retail or F&B. Can I still apply?
Possibly soon. At Budget 2026 the Government announced the Base Tier will expand to all sectors and run until 31 March 2028. Details are expected later in 2026. WhatsApp us and we will keep you posted.
Ready to claim your grant?
We are Singapore’s brand-neutral commercial aircon installer. 1,600+ five-star Google reviews, BizSafe 3 certified, and we install pre-approved 5-tick systems from every major brand. We will survey your premises free, recommend the right pre-approved models, and give you an EEG-ready quotation for your Business Grants Portal application.
WhatsApp +65 8818 5781 for a free site survey.
