National Enviromental Agency (NEA) Grants
Singapore has been consistently working to become less energy dependent and more energy efficient. In an effort to assist companies and organizations, the Government has set up several grants that can be availed of.
Below is a summary of incentives currently being offered. Please visit www.nea.gov.sg for full details.
1. Energy Efficiency Fund (E2F)
E2F is designed to support companies in the industrial sector to be more energy efficient. It encourages owners and operators of facilities to:
- Integrate energy and resource efficiency improvements into their development plans early in the design stage
- Conduct a detailed energy assessment for their facilities to identify energy efficiency improvement opportunities; and
- Invest in energy efficient equipment or technologies.
2. One-Year Accelerated Depreciation Allowance for Energy Efficient Equipment and Technology (ADAS)
This tax incentive scheme encourages companies to replace old, energy-consuming equipment with more energy efficient ones and to invest in energy-saving equipment. Inefficient equipment not only incur high operating costs as they consume more energy but also have a negative impact on the environment as a result of higher emission of pollutants to the environment. It is provided under the Income Tax Act. The National Environment Agency encourages interested parties to apply for this scheme. While you can enjoy the benefit of accelerated depreciation of your capital expenditure, you would also be contributing to a better environment.
3. ESCO Accreditation Scheme
An ESCO (energy services company) is a company dedicated to the provision of energy efficient technology and services including financing, design, implementation and management of projects.
The overall objective of accreditation is to enhance the professionalism and quality of services offered by ESCOs. This will enhance confidence in the energy services sector and help promote the growth of the industry. It is an important market development measure for Singapore. The accreditation scheme can lead to the following benefits:
- Development of professional and qualified ESCOs and energy engineers;
- Enhance the standing of ESCOs, and in particular energy auditing services;
- Support services procurement and selection procedures;
- Support public sector incentive schemes in the promotion of energy efficiency; and
- Reduce false claims amongst industry players