Promotion of Energy Audit and Conservation of Energy (PEACE): Incentive for Implementing Energy Audit Recommendations
By Micro Small and Medium Enterprises Department, Government of Tamil Nadu
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Quick Answer
Tamil Nadu government subsidy of up to ₹10 lakh for manufacturing MSMEs that carry out energy audit recommendations and achieve at least 10% energy savings.
- Funding amount
- Up to ₹10L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Tamil Nadu
- Registrations needed
- Udyam registration
About this subsidy
Manufacturing MSMEs in Tamil Nadu can get 50% of the cost of eligible energy conservation components, up to a maximum of ₹10 lakh. This is the "Implementation of Energy Audit Recommendations" component of the "Promotion of Energy Audit and Conservation of Energy (PEACE)" scheme of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu. It aims to reduce electricity bills and improve competitiveness.
The unit must have undertaken an energy audit and achieved at least 10% energy savings in units of energy consumed per unit of product manufactured, compared to the last 12 months' average. Only investments made after the energy audit are eligible. There must be a minimum three-year gap between the previous and current energy audit. Enterprises with multiple units can apply separately for each unit.
The subsidy is released after the recommendations are implemented and an energy auditor certifies them. If a loan was availed for them, the subsidy can be adjusted against the loan account.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Provider
Micro Small and Medium Enterprises Department, Government of Tamil NaduChennai · Tamil Nadu · India
Tamil Nadu's Micro, Small and Medium Enterprises Department runs state subsidy, loan and incentive schemes for micro, small and medium enterprises and for people who want to start one. The department's pages do not always agree on the details, so confirm the terms of any scheme…
Learn moreBenefits & Funding
- Amount
- Up to ₹10L
What You Get
- Financial Incentive: Receive 50% of the cost of eligible energy conservation components, up to a maximum of ₹10,00,000. This direct subsidy helps MSMEs offset the capital expenditure required for upgrading machinery and adopting energy-efficient technologies.
- Reduced Operational Costs: By implementing energy audit recommendations, MSMEs can achieve significant energy savings, leading to reduced electricity bills and improved financial performance, thereby enhancing their overall competitiveness.
- Support for Sustainable Practices: The incentive encourages MSMEs to adopt environmentally friendly practices, contributing to energy conservation and sustainability goals within the state, aligning with broader national objectives for energy efficiency.
- Disbursal Post-Implementation: The subsidy is released after successful implementation of recommendations and certification by an energy auditor, ensuring the effectiveness and verified impact of the investments. If a loan was availed for these implementations, the subsidy can be directly adjusted against the loan account, providing immediate financial relief to the enterprise.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications submitted online will undergo a rigorous review by the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu. The evaluation process will primarily assess the applicant's adherence to all stated eligibility criteria, including the status of their energy audit, the details of the proposed implementation plan, and critically, the achievement of at least 10% energy savings post-implementation. Disbursal of the subsidy is contingent upon the successful and verified implementation of the energy audit recommendations, which must be certified by an independent and authorized energy auditor. This verification step ensures that the financial incentive is provided only for demonstrated energy conservation efforts.
Application Process
- 1
Register
Create an account on the MSME TN official portal.
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
Who is eligible for this incentive?
All manufacturing MSMEs in Tamil Nadu that have undertaken energy audits and achieved at least 10% energy savings in specific energy consumption with reference to the last 12 months' average are eligible. Enterprises with multiple units can apply separately for each unit.
What is the maximum subsidy amount?
The maximum subsidy available is ₹10,00,000 (Ten Lakhs INR), covering 50% of the cost of eligible components for implementing energy audit recommendations.
What investments are eligible for the subsidy?
Eligible components include the cost of technology acquired for energy saving, the cost of replacement of equipment for energy conservation, new machinery/accessories purchased and installed for energy efficiency, and the cost of modification/alteration made in existing machinery/equipment/retrofit for energy conservation. Investments must be made after the energy audit.
When will the subsidy be disbursed?
The subsidy will be released to the MSME after the successful implementation of the recommendations outlined in the Energy Audit Report, which must be duly certified by an energy auditor. If the unit has availed a loan for the implementation, the subsidy can be released directly to the bank to adjust in the loan account if the loan is still active.
Is there a waiting period between energy audits?
Yes, to be eligible, there should be a minimum gap of three years between the previous energy audit and the subsequent (present) energy audit.
How is the percentage of energy savings calculated?
The percentage of savings in specific energy consumption (Kwh/Kcal per unit of product) is reckoned on a twelve-month average energy consumption before the implementation of energy audit recommendations and a minimum three-month average after the implementation of the recommendation of the energy audit.
Sources
Data on this page is compiled from official program and provider references.
