State-based schemes like NSW’s ESS and Victoria’s VEET get most of the attention for commercial LED rebates. But there are federal programs worth knowing about too. Some are genuinely useful. Others are more marketing hype than practical help.

Let me break down what’s actually available and realistic for commercial lighting projects.

The Energy Efficiency Grants for Small and Medium Enterprises

This is the most directly relevant federal program for commercial lighting upgrades. It’s administered by various delivery partners and has gone through several iterations over the years.

The basics:

• Grants typically cover 25-50% of eligible project costs
• Minimum and maximum project sizes vary by round
• Usually requires an energy audit first
• Competitive application process

The reality:

• Highly competitive. Many applicants, limited funds.
• Application process is time-consuming
• You might wait months to hear back
• Funding rounds open and close unpredictably

If you’ve got a significant project and the timing works out, worth applying. But don’t count on it—have a viable project even without the grant.

Instant Asset Write-Off

This isn’t a grant, but it’s federal tax policy that affects project economics significantly.

Under current rules (which change periodically, so verify with your accountant), small businesses can immediately deduct the full cost of eligible assets up to certain thresholds, rather than depreciating them over time.

For LED retrofits, this means:

• The full cost of LED fittings can potentially be deducted in the year of purchase
• This improves cash flow compared to spreading deductions over years
• Thresholds and eligibility criteria change, so check current rules

This isn’t a rebate—you’re still spending the money. But the tax treatment can make a meaningful difference to project timing decisions.

CEFC and Clean Energy Finance

The Clean Energy Finance Corporation (CEFC) provides financing for clean energy projects, including energy efficiency upgrades.

How it works:

• They typically don’t fund small projects directly
• For larger facilities (think major commercial or industrial), they might provide concessional finance through partner banks
• The finance is often bundled through equipment finance programs

For most commercial LED projects:

• Project size is too small to deal directly with CEFC
• But some equipment finance providers have CEFC-backed products that might offer slightly better rates for “green” equipment
• Worth asking your finance provider if they have any clean energy programs

The ARENA Factor

The Australian Renewable Energy Agency (ARENA) funds renewable energy innovation and demonstration projects. They don’t fund routine LED retrofits.

However, if you’re doing something genuinely innovative—say, a large-scale smart lighting project with advanced controls, demand response capability, and renewable energy integration—there might be pathways.

This is more relevant to organisations doing cutting-edge projects, not typical commercial retrofits. But if you’re a local council rolling out smart street lighting across a municipality, or a major facility integrating lighting controls with solar and battery systems, it could be worth investigating.

For projects involving sophisticated building automation and AI-driven energy management, companies like Team400 work on the smart systems integration side—though that’s a different conversation from basic LED upgrades.

National Construction Code Requirements

Not a funding source, but worth mentioning: the National Construction Code (NCC) sets energy efficiency requirements for new buildings and major renovations.

What this means practically:

• New commercial buildings must meet lighting power density limits
• This essentially mandates LED or equivalent efficiency in new construction
• Renovations triggering building approvals may require lighting upgrades

If you’re already required to upgrade lighting for NCC compliance, the question isn’t whether to go LED but how to do it most cost-effectively.

State Programs Remain the Main Game

I keep coming back to this: for most commercial LED retrofits in Australia, the state-based certificate schemes are where the real money is.

NSW ESS: Energy Savings Certificates Victoria VEET: Victorian Energy Efficiency Certificates South Australia REES: Retailer Energy Efficiency Scheme ACT EIS: Energy Efficiency Improvement Scheme

Queensland and WA don’t have equivalent schemes, which is why retrofits in those states often have longer paybacks.

Stacking Incentives

Here’s where it gets interesting. You can often combine multiple programs:

Scenario: Medium commercial building in Melbourne

1. LED retrofit costs $80,000
2. VEECs rebate: $30,000 (estimated)
3. Instant asset write-off: ~$12,500 tax benefit (at 25% tax rate on remaining $50k)
4. Federal SME grant (if successful): $15,000
5. Net cost: $22,500

That’s a significant difference from the sticker price. But note that getting all these ducks in a row requires planning and timing.

The Application Burden

One thing I warn clients about: applying for federal grants takes effort. Real effort.

What you’ll likely need:

• Energy audit from a qualified assessor
• Detailed project scope and quotes
• Business case with projected savings
• Evidence of organisational capacity to deliver
• Various compliance declarations

If you’re doing a $50,000 project and the grant might be $10,000-15,000, is the application time worth it? Especially when success isn’t guaranteed?

For some organisations—particularly those with staff who handle grant applications regularly—yes. For a small business owner doing everything themselves—maybe the state rebate alone is enough to make the project work, and you save yourself weeks of paperwork.

My Honest Take

Federal funding for energy efficiency exists, but it’s:

• Fragmented across multiple programs
• Often competitive and oversubscribed
• Time-consuming to apply for
• Uncertain in timing and availability

The state certificate schemes (ESS, VEET) are:

• More straightforward
• More predictable
• Faster turnaround
• Available for most eligible projects

My advice: Build your project business case around state rebates. Treat federal grants as a bonus if you can access them, not as a foundation.

And definitely talk to your accountant about asset write-offs and tax treatment. That’s where federal policy often makes the most practical difference for commercial LED projects.