Scheme for Promotion of Energy Audit & Conservation of Energy

The Government of Tamil Nadu has launched the Promotion of Energy Audit & Conservation of Energy (PEACE) to promote energy efficiency in Micro, Small and Medium Enterprise (MSME) units. Under the PEACE scheme, the Government will reimburse 50% of the cost of conducting an energy audit. Also, based on the recommendation of the energy audit, the grant of 25% of the cost of machinery & equipment replaced, retrofit and technology acquired will be provided to improve the energy efficiency. In this article, we look at the Scheme for Promotion of Energy Audit & Conservation of Energy (PEACE) in detail.

Objectives of the Scheme

The objectives of the PEACE scheme are given below:

To create awareness and educate MSMEs about the benefits or advantages of new techniques, technologies for saving energy.
To undertake in-depth studies of high energy-consuming MSME clusters and identify gaps and potential barriers for energy conservation.
To promote the adoption of suitable techniques and technologies to achieve energy efficiency.
To encourage MSME for adopting energy audits to improve energy efficiency and fuel substitution and monitoring the implementation of recommendations.

Subsidy for Conducting Energy Audit

Purpose

The main purpose of conducting detailed energy audit are listed below:

To recognise the major sources of energy in use
To identify the lapses in energy usage
To recognise the areas to improve energy usage
To determine the level of consumption of the energy sources and recommending measures that will enhance energy savings in the industry.

Eligibility Criteria

All manufacturing MSME units are eligible to participate under the Promotion of Energy Audit & Conservation of Energy scheme within one year from the completion of the energy audit. Note: Any MSME units which have already availed subsidy from the State/Central Government related to the purpose of an energy audit are not eligible to apply for the scheme.

Quantum of Assistance

The eligible MSME units will be provided with an incentive of 50% of the energy audit cost that is limited to Rs. 75 lakhs per energy per audit.

Subsidy for Implementing Energy Audit Recommendation

Purpose

The main purpose of implementing energy audit recommendation by the MSME is to optimise the energy consumption, which leads to energy saving and money saving in electricity bill.

Eligibility Criteria

The eligibility criteria required to participate in the PEACE scheme are mentioned below.

Any manufacturing MSME units which have undertaken energy audit in the state are eligible to apply for the PEACE scheme.
Any units which have achieved at least 15% energy savings in terms of the number of units of energy consumed per unit of the product manufactured are eligible.

Eligible Components

The below following are the components that will be eligible for the subsidy.

Cost of technology obtained for the purpose of energy saving.
Cost of replacement of inefficient energy equipment, machinery, accessories newly purchased and installed.
Cost of modification or alteration made in the existing machinery and retrofit equipment is also covered.

Quantum of Assistance

The eligible MSME units will be provided with an incentive of 25% of the cost of the eligible component that is limited to Rs. 2 lakhs per energy per audit.

Documents Required for Energy Audit

The documents required for energy audit are given here.

Certificate of registration of Entrepreneurs Memorandum- II or Udyog Aadhaar Memorandum.
Certificate of registration under LLP/Indian Partnership Act/Societies Registration Act/Certificate of incorporation (Memorandum of association & Article of Association) under Company Act.
Proof for a connected load such as EB Meter card, online Statement.
If the alternate source of energy other than electricity used, proof for the usage.
Documents for engagement of Energy Auditor/letter of acceptance from energy auditor.
If the Energy auditor is hired by a firm or partner or Director of a firm, then the recommended proof has to be enclosed.
Certificate of accreditation of Energy Auditor by Bureau of Energy Efficiency (BEE)
Copy of loan sanction letter if availed to conduct an energy audit.
Self-certified statement on expenditure incurred for Energy Audit with a copy of the bills/vouchers and receipt etc.
Copy of the detailed Energy Audit report.

Note: The original documents should be presented for verification at the time of inspection. If the originals are in the bank, then the copies have to be duly attested by the Branch Manager who financed the project.

Documents Required for Implementing Energy Audit

The documents required for implementing an energy audit are given here.

Certificate of registration of Entrepreneurs Memorandum- II/Udyog Aadhaar Memorandum.
Certificate of registration under the LLP/Indian Partnership Act/Certificate of incorporation (Memorandum of association & Article of Association )/Societies Registration Act.
Documentary proof for the connected load, which includes EB meter card or online statement.
If the alternate source of energy (other than electricity) is used, proof for the usage.
Copy of loan sanction letter, if obtained, for implementing the Energy Audit recommendation (Investment recommended) from Bank/Financial Institutions
Documents on the engagement of Energy Auditor/Energy Audit firm/Companies.
Certificate of accreditation of Energy Auditor by Bureau of Energy Efficiency (BEE).
If the Energy auditor is hired by a firm or partner or Director of a firm, then the recommended proof has to be enclosed.
Certified copy of implementation of energy audit recommendation and quantum of energy savings, duly certified by an energy auditor.
Copies of invoices & stamped receipts, cash bills duly attested. In the case of non-availability of receipts, the bank which shows the payments with the details of the machinery supplies should be furnished in original with the attestation of the bank manager.

Online Application Procedure for Energy Audit

Step 1: The eligible MSME seeking to avail subsidy under this scheme (Energy Audit) can approach the official portal of Micro, Small and Medium Enterprises Department. [caption id="attachment_85605" align="aligncenter" width="598"]

Scheme for Promotion of Energy Audit & Conservation of Energy (PEACE) - Image 1 Step 2: Select the “PEACE-Energy Audit” option under the apply online tab, which is available from the homepage of the portal. [caption id="attachment_85607" align="aligncenter" width="604"]

Scheme for Promotion of Energy Audit & Conservation of Energy (PEACE) - Image 2 Step 3: On the next page, user registration details will be displayed if the existing user can log in directly into the portal. [caption id="attachment_85608" align="aligncenter" width="590"]

Scheme for Promotion of Energy Audit & Conservation of Energy (PEACE) - Image 3

Scheme for Promotion of Energy Audit & Conservation of Energy (PEACE) - Login Page Step 4: If a new user clicks on “Register” option provide the necessary details for new user registration. [caption id="attachment_85609" align="aligncenter" width="625"]

Scheme for Promotion of Energy Audit & Conservation of Energy (PEACE) - Image 4

Scheme for Promotion of Energy Audit & Conservation of Energy (PEACE) - Registration Page Step 5: After registering into the portal, the new application form will appear and provide the following details to apply for PEACE- Energy Audit scheme:

Name of the MSME Unit
Address of the MSME
Type of organization
Date of Commencement
Investment details

[pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/07/Blank-application_peace1.pdf" title="Blank application_peace1"] Step 6: After providing the details mentioned above, upload the documents required and click on the “Save” button. Note: The subsidy will be released to the MSME units after completion of Energy Audit Report and duly certified by the energy auditor.

Online Application Procedure for Implementation

Step 1: The eligible MSME seeking to avail subsidy under this scheme (Implementation) can approach the official portal of Micro, Small and Medium Enterprises Department. Step 2: Select the “PEACE-Implementation” option under the apply online tab, which is available from the homepage of the portal. Step 3: On the next page, user registration details will be displayed if an existing user can log in directly into the portal. Step 4: If a new user clicks on “Register” option provide the necessary details for new user registration. Step 5: After registering into the portal, the new application form will appear and provide the following details to apply for PEACE-Implementation scheme:

Name of the MSME Unit
Name of Energy Auditor
Category of the unit
Type of organization
Investment Details

[pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/07/Blank-application_peace2.pdf" title="Blank application_peace2"] Step 6: After providing the details mentioned above, upload the documents required and click on the “Save” button. Note: The subsidy will be released to the MSME units after implementing the recommendations in the Energy Audit Report and duly certified by the energy auditor.

Track Application Online

This portal also facilities the applicant to track the status of the application submitted online. Click on the Track Your Status option, enter the application number or registered mobile number. By clicking on the submit button, the status of the application will be displayed. [caption id="attachment_85613" align="aligncenter" width="618"]

Scheme for Promotion of Energy Audit & Conservation of Energy (PEACE) - Track Application