【HK Electric - Subsidy for energy-saving equipment? HKEA helps you apply】

In addition to CLP, HK Electric also has an energy-saving equipment subsidy program. The subsidy is a program under HK Electric's "Smart Electricity Care Fund". The target of the subsidy is non-residential electricity account customers who replace energy-saving equipment at their premises within the HK Electric power supply area. The temporary application period is valid until December 31, 2033, or the fund is fully used up. There is also an opportunity to set a date through a joint review (the earlier date will prevail). This article will give a basic introduction to the application qualifications, requirements, procedures, etc. of the HK Electric Energy-Saving Equipment Subsidy Program. Our HKEA energy-saving team will also follow up from the beginning of application to completion. Please contact us for inquiries.

HK Electric Energy Saving Equipment Subsidy Scheme

Eligibility

Only projects that meet all of the following criteria will be considered for funding under the HK Electric Energy Saving Equipment Subsidy Scheme.

1. The energy-saving equipment project must be located within the electricity supply area of ​​HK Electric and be carried out at premises (buildings or floors/units of buildings) within the electricity supply address coverage of the registered HK Electric electricity account* (collectively referred to as eligible premises). The premises must have completed the Energy Savings Audit provided by HK Electric under the 2019-2033 Scheme of Control Agreement or the Energy Audit provided by HK Electric under the 2009-2018 Scheme of Control Agreement before the commencement of the project;
2. The project contains the following energy-saving equipment (eligible equipment) in eligible premises:
   i. LED bulbs/downlights/tubes/light strips/light panels used for non-decorative purposes;
   ii. Grade 1 energy label air conditioners registered in the "List of Models" of the "Mandatory Energy Efficiency Labelling Scheme" published by the Electrical and Mechanical Services Department (published on the website of the Electrical and Mechanical Services Department www.emsd.gov.hk/energylabel ); or the Application Guide for the Energy Saving Equipment Subsidy Scheme. In addition, high energy-efficient air-conditioning equipment that is not applicable to the "Mandatory Energy Efficiency Labelling Scheme" must have an efficiency higher than the minimum efficiency factor required by the latest version of the "Code of Practice for Energy Efficiency of Building Services Installations" issued by the Electrical and Mechanical Services Department (published on the website of the Electrical and Mechanical Services Department www.emsd.gov.hk/beeo ). Eligible air-conditioning equipment includes single-type packaged air conditioners , variable refrigerant flow systems , energy-saving air-cooled chillers , water-cooled chillers, etc .;
3. The project can improve energy efficiency and generate quantifiable electricity savings;
4. The Energy Saving Equipment Project (including Partial Project) is not funded by any other scheme under the "Smart Energy Saving Service" (whether approved or in the process of application);
5. For replacement of existing common building equipment, applicants must first apply for the Smart Power Building Fund (for details, please visit www.hkelectric.com/SPBF ); if the equipment replacement project is not funded by the Smart Power Building Fund, the relevant applications participating in this scheme will be considered.

*The applicant must be a registered customer (applicant) of HK Electric's non-residential electricity supply or peak load electricity supply accounts (except temporary electricity supply and Hong Kong Special Administrative Region Government electricity accounts).

Note: Applicants are required to appoint and authorise a natural person as the applicant’s representative (e.g. Chairman/Director of a company/organisation) and a natural person as the person in charge before application to handle all matters related to the application and project on behalf of the applicant.

Application Process

1. Applicants must submit the completed Scheme Application Form (the latest version is available on the HK Electric website at www.hkelectric.com/EEES ) together with the following documents to HK Electric for application within 1 year from the date of the last official payment** receipt of the copy of the actual expenses proof (HK Electric will send a confirmation email to confirm receipt of the application):
   --Appendix A to the Application Form – Project Equipment Table ;
   -- A copy of each actual cost certificate for completed projects , with the following details:
2. Documentary evidence of project funding; and
3. Other additional project information if required, such as equipment catalogs, circuit diagrams, etc.
4. The completed application form together with all the required documents should be submitted to HK Electric via email (SME@hkelectric.com) for processing. Please specify "Application for Energy Saving Equipment Subsidy Scheme" in the subject line of the email.
5. Applications will be processed on a first-come, first-served basis, starting from the date and time of receipt of the application stated in the confirmation email sent by HK Electric (the date and time of receipt of the application email by HK Electric's email system shall be the basis) until the funds of the scheme are exhausted.

• HK Electric has the full and absolute discretion to accept or reject any application/eligible premises/project based on the application information or other relevant factors and such decision shall be final.

i. Proof of actual expenses must be an official payment receipt that lists the name and contact information of the relevant supplier and is stamped with the official seal of the relevant supplier; separate invoices, delivery notes and their copies (whether paid or not) are not acceptable as proof of actual expenses;
ii. Each official payment receipt must state the date of payment receipt and the itemized cost information of the relevant completed items; and iii. If any official payment receipt lacks the supplier’s name, contact information, official chop or itemized cost information, the applicant must provide an invoice, delivery note, payment transaction record, contract or purchase order stamped with the supplier’s official chop and clearly written/printed with the supplier’s name, contact information and itemized cost information as proof.

Project funding refers to funding applied for (whether approved or in progress) or other amounts of similar nature (including but not limited to funds or funding schemes managed by the Government of the Hong Kong Special Administrative Region, but for the avoidance of doubt, excluding the amount of funding applied for) for the project (including part of it), and shall be deducted from the eligible project expenses to calculate the net eligible project expenses.

Funding ceiling

The energy-saving equipment grant is 50% of the project cost, subject to the following caps:

• The maximum subsidy for each eligible premises is HK$150,000
• The upper limit for each LED bulb/downlight is HK$20
• The upper limit for each LED light tube/light strip/light panel is HK$60
• HK$2,500 for each Grade 1 energy labelled air conditioner (Mandatory Energy Efficiency Labelling Scheme)
• HK$10,000 for each high-efficiency air-conditioning equipment that is not applicable to the Mandatory Energy Efficiency Labelling Scheme

The funding ceiling for the project is subject to the lower limit of the single eligible premises and individual energy-saving equipment published on the HK Electric website ( www.hkelectric.com/EEES ) on the date of receipt of the Scheme Application Form as stated in the confirmation email. If the same single premises has previously received any funding amount under the Scheme for different projects between 2024 and 2028, the funding ceiling for the application shall be reduced by the sum of such funding amounts; however, if the funding ceiling is reduced to zero, the application will not be processed.

Approval Check

Joint project post-review

• HK Electric will make a preliminary assessment based on the application documents submitted by the applicant. For applications with satisfactory results, HK Electric and an authorised person will jointly conduct a post-project on-site audit at HK Electric's request. The authorised person shall sign and stamp the post-project audit certificate (in the form specified by HK Electric) to confirm and/or verify the matters arising from the joint post-project audit. The form of the certificate shall be specified by HK Electric. The scope of the joint post-project audit includes but is not limited to the following items:
  -- record (e.g. by taking photographs and/or videos) the condition and details of eligible premises and the condition of new equipment (if applicable) associated with the project; and
  -- Review the application information submitted by the applicant. If HK Electric considers it necessary, the applicant shall revise the application information of the eligible equipment and/or provide additional information to reflect the actual site conditions obtained from the joint post-project review. HK Electric may request another joint post-project review to confirm such revisions or additional information.
• If the joint post-project review is not completed within 6 months from the date of receipt of the project application form stated in the confirmation email, the application will be automatically terminated.
• If HK Electric considers it necessary, HK Electric will replace the electricity account meters of the existing eligible premises to obtain more detailed electricity consumption data to verify the performance of the project in improving energy efficiency. The applicant shall permit and provide appropriate arrangements required by HK Electric (including but not limited to permitting or procuring permission to suspend power supply when necessary) to enable HK Electric to complete the required meter replacement works.
• HK Electric will review applications for eligible equipment that have completed the joint project post-check. HK Electric has the sole and absolute discretion to approve, suspend or reject applications, and to determine and approve the amount of funding approved, and its decision is final. If HK Electric deems it necessary, it may request applicants to provide clarification or additional information for review and approval.

HK Electric's Energy Saving Equipment Subsidy

If the application is approved by HK Electric

HK Electric will calculate the approved subsidy amount based on the approved net cost of eligible projects and make the following adjustments (if applicable), and disburse the subsidy to the designated electricity account of the eligible premises for payment of electricity bills on a reimbursement basis, and notify the applicant by email (notification of subsidy disbursement). For the avoidance of doubt:

1. Applicants must first pay all project fees with their own funds. The amount of funding will be calculated based on the actual project fees paid and will be subject to the maximum approved funding amount;
2. Regardless of whether the applicant actually receives project funding, the project funding must be deducted from eligible project expenses (if applicable); and
3. HK Electric is not required to release any approved subsidy for any uncompleted projects, unpaid project items or eligible equipment that has not been installed/commissioned.
4. If there is an outstanding electricity bill for any electricity account covering the eligible premises, the subsidy will not be disbursed to the designated electricity account. The balance of government electricity subsidy in the electricity account (if any) will be used to offset the electricity bill first, and then the subsidy will be used to offset the electricity bill. If the designated electricity account has been terminated or transferred, the remaining subsidy will not be refunded to the applicant in any form (including transfer to other electricity accounts under the applicant's name).
5. To ensure that the project is implemented in accordance with the funding agreement, HK Electric and/or the Government of the Hong Kong Special Administrative Region have the right to conduct on-site inspections at any time within 2 years after the funding is disbursed. The applicant shall not relocate, resell or remove any installed equipment or materials of the funding agreement project during the above 2 years. Otherwise, HK Electric has the right to recover all the funding already disbursed to the applicant.

HKEA Energy Saving Subsidy Consultancy Service

If you need to hire an energy-saving subsidy consultant to provide advice, you can contact us at HKEA. Our REA registered energy efficiency assessors and team can provide you with assistance to make your energy-saving subsidy application smoother. More importantly, we can provide you with effective energy-saving solutions to save electricity bills.

If you want to know more about CLP's energy conservation and emission reduction subsidy program, please refer to our other article - CLP's Energy Conservation and Emission Reduction Subsidy Program - Optimizing Resources to Save Electricity Bills