Aircon EEG Grant Singapore (2026): Complete SMEs Guide to Save Up to 70%

Last updated as of 1 July 2026

Introduction

If your business is upgrading its aircon in 2026, don’t pay the full cost. With Singapore’s Energy Efficiency Aircon Grant (EEG), companies can receive up to 70% co-funding (SMEs) or 30% (non-SMEs) for eco-friendly aircon that meets the latest NEA standards.

This isn’t just about saving money. Every energy-efficient unit reduces electricity use, lowers your carbon footprint, and supports Singapore’s Green Plan 2030.

Update (April 2026): The Singapore Government has just announced that the EEG grant is now expanded to all sectors. No matter what business you are in, you can now apply for this support to go green.

EEG aircon grant Singapore 2026 showing professional aircon installation for businesses
Businesses in Singapore can save up to 70% percent with the EEG aircon grant in 2026.

This ultimate guide explains:

    • EEG Base vs Advanced tiers
    • MEPS 2026 eco-standards
    • Step-by-step application (with pitfalls to avoid)
    • Top eco-friendly Aircon 3 to 5 models
    • ROI savings + carbon reduction examples

The EEG aircon grant closes on 31 March 2028, so timing matters.

Great news! As of April 2026, the government has announced that the EEG (Base Tier) will be extended even further to 31 March 2028.

This gives SMEs more time to plan, but remember the 70% support rate is always subject to budget, so it is still better to apply early. (Extended as of the April 2026 Ministerial Statement).

What Is EEG Aircon Grant in Singapore?

    • EEG (Base): For pre-approved models.
        • Support: 70% (SME) / 30% (non-SME)
        • Cap: S$30,000 (per company, 1 Apr 2024 to 31 Mar 2028)
        • Apply: Business Grants Portal (BGP)
        • Deadline: Install & claim within 1 year of approval
    • EEG (Advanced): For larger non-pre-approved projects.
        • Cap: Up to S$350,000 (cumulative with Base)
        • Must show ≥350 tonnes lifetime CO₂ abatement
        • Requires a third-party assessor report
        • Applies to construction, manufacturing (incl. food), and maritime sectors

MEPS 2026 Requirements (Eco Standards You Must Meet)

From 1 April 2026, NEA raised the bar to push for greener aircon:

    • Single-split: minimum 4 tick
    • Multi-split: minimum 5 ticks

Why does it matter?

    • Higher tick ratings = less energy wasted
    • Less energy = lower carbon emissions
    • Eco-friendly refrigerants (like R32) used in compliant models = reduced global warming impact

Note: The one-year grace period for old stock ended on 31 March 2026.

From now on, all aircons sold must strictly meet these new eco-standards. At @bsolute, we only provide NEA-registered, 2026-compliant models

Every extra tick can cut electricity use by 15 to 20%, benefiting both your wallet and, most importantly, our planet.

Modern singapore office with ceiling cassette aircon eligible for eeg aircon grant upgrade
Modern Singapore office with a ceiling cassette aircon that can qualify for the Energy Efficiency Grant (EEG) for energy-efficient upgrades.

Step-by-Step on how to Apply?

    • Check your eligibility (SSIC code, turnover, SME vs non-SME status).
    • Select a pre-approved eco-friendly aircon model from the GoBusiness list.
    • Get an EEG aircon vendor quotation.
    • Submit the application on BGP under your correct sector.
    • Install and claim within 1 year (submit invoice, proof of payment, delivery order, photos).
    • Multiple applications are allowed until you hit the cap.

    Note: Only aircon cost is claimable (not installation or admin fees).

    Pricing & Support Table

    Item Base Tier Advanced Tier
    Support Rate 70% (SME), 30% (non-SME) Lower of Base rate or savings formula
    Cap S$30,000 (till 31 Mar 2028) Up to S$350,000 cumulative
    Sectors Retail, F&B, Data Centers, Harbourcraft, Construction, Manufacturing, Maritime Construction, Manufacturing, Maritime
    Approval Window Install & claim within 1 year Install & claim within 1 year
    Eco Impact Switch to a 4 to 5-tick eco aircon Big projects = higher carbon abatement

    ROI Examples

    Case Equipment Cost Support Est. Outlay Est. Saving Payback
    Cafe (SME) S$9,000 70% = S$6,300 S$2,700 S$70/month ~39 months
    Retail (Non-SME) S$12,000 30% = S$3,600 S$8,400 S$75/month ~112 months
    Office Suite (SME) S$25,000 70% = S$17,500 S$7,500 S$198/month ~38 months

    With the Singapore Carbon Tax rising to S$45 per tonne in 2026, switching to these eco-friendly models helps your business avoid future green costs while enjoying lower electricity bills.

    Real Case Eco Impact
    Cafe (SME) Saves ~4,000 kWh/year (~1.6 tCO₂)
    Retail (SME) Equivalent to planting ~20 trees
    Office (SME) Saves ~12,000 kWh/year (~4.8 tCO₂)

    Case Study 1: Office in Tanjong Pagar

    An accounting firm upgraded their old split units to energy-efficient cassette aircon.

    Project Details:

    • Office size: 2,900 sqft
    • System: 3 x cassette aircon units (Daikin)
    • Total cost: $18,000

    EEG Grant Support:

    • 70% support (SME)
    • Grant received: $12,600

    Actual Cost Paid:

    • $5,400

    Results:

    • Monthly electricity bill reduced by 28%
    • Aircon cooling improved significantly (more even airflow)
    • Staff comfort increased, and fewer complaints

    Timeline:

    • Quotation to approval: 2 to 3 weeks
    • Installation: 1 day
    • Total project completion: under 1 month

    Case Study 2: Cafe in Bugis

    A busy cafe replaced its aging aircon system to reduce energy costs and improve customer comfort.

    Project Details:

    • Shop size: 800 sqft
    • System: 2 x high-efficiency wall-mounted units (Mitsubishi Electric)
    • Total cost: $9,500

    EEG Grant Support:

    • 70% support (SME)
    • Grant received: $6,650

    Actual Cost Paid:

    • $2,850

    Results:

    • Electricity savings: 25% monthly
    • Faster cooling during peak hours
    • Better customer experience = longer stay time

    Timeline:

    • Approval: 2 weeks
    • Installation: 1 day
    • Full upgrade: within 3 weeks

    Note: Costs and savings vary by your aircon unit type, usage, and eligibility for the Aircon Energy Efficiency Grant.

    Top EEG Aircon Eligible System 3 to 5 Aircon Models (MEPS 2026 Ready)

    Brand System Sample Models EEG Eligible Why Businesses Choose It
    Mitsubishi Electric System 3 MXY-3H28VG, MXY-3H28VG2 Yes Widely trusted in SG; efficient & quiet
      System 4 MXY-4H33VG, MXY-4H38VG Yes Ideal for larger retail & tuition centers
      System 5 MXY-5H48VG Yes High cooling load for bigger offices
    Daikin System 3 to 4 MKM50VVMG, MKM50ZVMG Yes iSmile Eco series; cost-saving design
      System 4 MKM75VVMG, MKM75ZVMG Yes Popular mid-range multi-split
      System 5 MKM100VVMG, MKM100ZVMG Yes Strong performer for multi-room spaces
    Panasonic System 3 CU-3XU28YBZ Yes Well-suited for SMEs in retail & F&B
      System 4 CU-4XU33YBZ, CU-4XU38YBZ Yes Reliable and NEA listed for commercial use

    Note: Always check the latest GoBusiness equipment list before purchase.

      • Inverter aircon tech → reduces wasted energy
      • R32 refrigerant → lower global warming potential than older R410A
      • Smart eco modes → sensors that reduce cooling when rooms are empty

      Common Pitfalls

        • Buying before approval → application rejected = no claim.
        • Wrong SSIC sector → delays and resubmissions.
        • Claiming installation/admin fees → ineligible.
        • Missing the 1-year claim timing → support forfeited.
        • Buying old models with outdated refrigerants (R410A) → may fail future eco standards.

        FAQs

        Q1: What’s the last date to apply?
        A: The grant has been extended! You now have until 31 March 2028 to apply for the Base Tier, but we recommend applying early to avoid the budget being fully used.

        Q2: Can I purchase first?
        A: Only after submitting your application, but claims are void if rejected.

        Q3: Which costs qualify?
        A: Equipment cost only.

        Q4: Can I apply for the aircon EEG grant multiple times?
        A: Yes, until you hit the cap.

        Q5: Which models are best?
        A: Choose EEG-listed, MEPS 2026-compliant models with inverter tech and eco refrigerant.

        Testimonials

        We upgraded to eco-friendly 5-tick systems with @bsolute. Our bills dropped, and we’re proud to cut carbon emissions too.
        Ms. Tan, Serangoon Garden

        The team guided us through every step, from EEG paperwork to installation. The R32 units are efficient and future-ready.
        Mr. Lim, Bukit Batok

        Great installation service, eco-safe models, and grant savings made this a no-brainer.
        Mdm Ong, Bedok

        Infographic showing how businesses in Singapore can save up to 70% with the EEG Aircon Grant 2025, eco-friendly MEPS-2025 rules, application steps, and benefits

        EEG Aircon Grant Singapore 2026, step-by-step process, eco-friendly rules, and reasons to upgrade your aircon system

        Contact us

        Upgrade to an energy-efficient, MEPS-2026 compliant system today.
        Save money, stay cool, and help protect our planet.

        WhatsApp us for a free EEG eligibility check & quotation.

        Quote “EEGAircon50” for $50 off your eco-friendly aircon installation today!

        Fabian believes that every SME can be a leader in Singapore’s Green Plan 2030 by making simple, smart choices today.

         

          Author Bio

          Written by Fabian Tan, with more than a decade of experience in Singapore’s air-con industry. Specialised in eco-friendly installations and grant advisory for SMEs and enterprises.