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Business & Entrepreneurship

Promotion of Energy Audit and Conservation of Energy (PEACE): Incentive for Implementing Energy Audit Recommendations

The "Incentive for lmplementing Energy Audit Recommendations" component of this scheme is introduced to incentivise MSMEs to implement the recommendations of the Energy Audit Report and to optimize energy consumption leading to energy saving and money savings in electricity bills.

Authority

State/ UT

Region

Tamil Nadu

Status

Verified 2026

Updated

March 2026

What you get

- 50% of the cost of eligible components, subject to a maximum limit of ₹ 10,00,000/ -. | - Investments made after the energy audit alone will be eligible for the subsidy. | The overall ceiling on subsidy should not be applied for the original energy audit and subsequent energy audit taken together but should be applied separately for the original energy audit and the subsequent energy audit. | Time of Disbursal | The subsidy will be released to the MSME after the implementation of the recommendations in the Energy Audit Report that is duly certified by the energy auditor. | If the unit has availed a loan for the implementation of the recommendations of the energy audit, the subsidy will be released to the bank to adjust in the loan account if the loan is in currency.

Who can apply

AIl manufacturing MSMEs in the state which have undertaken energy audits arid have achieved at least 10% energy savings in terms of the number of units of energy consumed per unit of product manufactured with reference to the last 12 months average.; Enterprises having more than one unit may also avail of this concession, separately for each unit.; There should be a gap of a minimum of three years between the previous energy audit and the subsequent energy audit i.e. present energy audit.; Cost of technology acquired for energy saving.; Cost of replacement of equipment for energy conservation/ cost of machinery/accessories newly purchased & installed for the purpose.; Cost of modification/ alteration made in the existing machinery/equipment/retrofit equipment for energy conservation.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Why is there a requirement for a minimum three-year gap between energy audits?

The gap ensures a meaningful assessment of energy savings and the impact of implemented recommendations.

What does the application status tracking link entail?

The link, https://www.msmeonline.tn.gov.in/incentives/app_track.php?id=Track%20Your%20Status, allows applicants to monitor the progress of their subsidy application.

How is the percentage of savings in specific energy consumption calculated?

The percentage is reckoned on a twelve-month average before and after the implementation of energy audit recommendations.

Why is proof of connected load required in the application documents?

Proof of connected load, such as EB Meter Card/Online Statement, is essential for the application process.

What is the significance of the "Know Your Eligibility" link?

The link, https://www.msmeonline.tn.gov.in/incentives/know_your_eligibility.php, helps MSMEs understand their eligibility for the scheme.

What is the time limit for filing claims after implementing energy audit recommendations?

MSMEs must submit claims within one year from the date of implementation or within two years from the energy audit date, whichever is earlier.

How can applicants track the status of their application?

Applicants can track the status at https://www.msmeonline.tn.gov.in/incentives/app_track.php?id=Track%20Your%20Status.

What is the application link for the scheme?

The application link is https://www.msmeonline.tn.gov.in/incentives/dea_sub.php?id=New%20Application.

What documents are required for application, and in what format?

Documents include Udyog Aadhaar Memorandum, Certificate of Registration, proof of connected load, and the Detailed Energy Audit Report in PDF format (less than 200 kb).

When should MSMEs file an online application after implementing energy audit recommendations?

MSMEs should apply online three months after the date of implementation, with a submission limit within one year or two years from the energy audit date.

What costs are covered under the eligible components for subsidy?

Costs of technology acquired for energy saving, replacement of equipment, and modification of existing machinery for energy conservation are covered.

Which enterprises are excluded from the scheme?

Micro, Small, and Medium service enterprises and those already availing similar subsidies for the same purpose from other government agencies are excluded.

What is the minimum gap required between the previous and subsequent energy audits?

There should be a minimum gap of three years between the previous and subsequent energy audits.

Can enterprises with more than one unit avail the concession, and how is it calculated?

Enterprises with multiple units can avail the concession separately for each unit, based on energy savings in specific energy consumption.

Which enterprises are eligible for the scheme, and what energy savings criteria must they meet?

All manufacturing MSMEs achieving at least 10% energy savings are eligible, reckoned on a twelve-month average before and after the implementation of energy audit recommendations.

How much subsidy can a manufacturing MSME receive under the "Incentive for Implementing Energy Audit Recommendations" component, and what is the maximum limit?

MSMEs can receive 50% of the cost of eligible components, subject to a maximum limit of [?]10,00,000/-.