MySubsidy

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

Micro Small and Medium Enterprises Department, Government of Tamil Nadu · Central government

Tamil Nadu's scheme subsidises manufacturing MSMEs up to ₹10 lakh for energy audit fixes achieving ≥10% savings.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Subsidy amount
Up to ₹10,00,000
Instrument
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend

About this scheme

The Micro, Small and Medium Enterprises Department, Government of Tamil Nadu, administers the "Promotion of Energy Audit and Conservation of Energy (PEACE)" initiative. It targets energy efficiency improvements within the state's manufacturing MSME sector. The scheme addresses the substantial energy consumption challenges faced by small businesses by supporting the adoption of measures identified through detailed energy audits.

Financial incentives are provided to lower operational costs for MSMEs through reduced electricity bills, with the aim of improving their competitive position and supporting environmental sustainability. The programme focuses on the "Implementation of Energy Audit Recommendations" component of the broader PEACE scheme, offering direct assistance for tangible energy conservation investments. This approach benefits individual enterprises financially and supports the state's objectives for sustainable industrial practices.

Who can apply

Eligible business forms
Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
Udyam registration
Not specified
MSME registration
Required
DPIIT startup recognition
Not specified
GST registration
Not specified
Where the business may be based
Tamil Nadu

- All manufacturing MSMEs in Tamil Nadu. - Must have undertaken energy audits. - Must have achieved at least 10% energy savings in units of energy consumed per unit of product manufactured, compared to the last 12 months' average. - Investments made after the energy audit alone are eligible for the subsidy. - Minimum three-year gap required between previous and current energy audit. - Enterprises with multiple units can apply separately for each unit.

How to apply

**Step 1: Registration** - Go to the official portal of the Micro, Small, and Medium Enterprises Department, Government of Tamil Nadu, at www.msmeonline.tn.gov.in. - Select 'Login / Registration' from the top ribbon. - Provide the required details: Name, Date of Birth, Aadhaar Number, Email ID, and Mobile Number. Set a new password with at least 8 characters, including one uppercase letter, one lowercase letter, and one digit. - Enter the captcha code and press 'Register'.

**Step 2: Login** - Access the login page at www.msmeonline.tn.gov.in/registration.php and click 'Login'. - Enter the credentials sent to your registered email address and mobile number.

**Step 3: Form Filling** - Once logged in, place the cursor over 'Schemes' in the top ribbon and choose the relevant scheme from the list. - Place the cursor over 'Apply Online' and select 'New Application' from the dropdown. - Complete every mandatory field in the application form (www.msmeonline.tn.gov.in/incentives/dea_sub.php?id=New%20Application). - Verify all entered information, accept the terms and conditions, declaration, and privacy policy, then click 'Proceed'. - Record the reference number displayed on the screen and click 'Close'.

**Step 4: Upload Documents** - Place the cursor over 'Schemes' in the top ribbon and choose 'Upload Documents' from the dropdown. - On the following page, enter the Application ID and click 'Submit'. - Upload all required documents in the prescribed format and size. - After uploading, click 'View' to confirm that the documents are accurate.

**Step 5: Submission** - Tick all the checkboxes at the bottom of the screen and click 'Submit Application'. - A confirmation message about the submission of the online application to GM/DIC / RJD will be sent to your mobile phone.

**(Optional) Step 6: Track Application Status** - Monitor the progress of your application at www.msmeonline.tn.gov.in/incentives/app_track.php?id=Track%20Your%20Status. Updates may also be communicated through email or SMS.

Apply on the issuer's site

How applications are assessed

Applications submitted online are reviewed by the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu. The assessment focuses on the applicant's compliance with all stated eligibility criteria, including the energy audit status, the proposed implementation plan, and the requirement of achieving at least 10% energy savings after implementation. Subsidy disbursal depends on verified implementation of the audit recommendations, certified by an independent and authorised energy auditor. This verification confirms that the incentive is released only for proven energy conservation outcomes.

Frequently asked questions

Who is eligible for this incentive?

Manufacturing MSMEs in Tamil Nadu qualify if they have completed an energy audit and reduced specific energy consumption by at least 10% against the previous 12-month average. Enterprises with multiple units may submit a separate application for each unit.

What is the maximum subsidy amount?

The maximum subsidy is ₹10,00,000 (Ten Lakhs INR), which covers 50% of the cost of eligible components for implementing energy audit recommendations.

What investments are eligible for the subsidy?

Eligible components cover the cost of technology acquired for energy saving, replacement of equipment for energy conservation, new machinery or accessories purchased and installed for energy efficiency, and modification, alteration, or retrofit of existing machinery or equipment for energy conservation. These investments must be made after the energy audit.

When will the subsidy be disbursed?

The subsidy is disbursed to the MSME once the recommendations in the Energy Audit Report are implemented and certified by an energy auditor. If the unit took a loan for the implementation and the loan is still active, the subsidy may be paid directly to the bank to adjust against the loan account.

Is there a waiting period between energy audits?

Yes, a minimum gap of three years must exist between the previous energy audit and the current one for eligibility.

How is the percentage of energy savings calculated?

The savings in specific energy consumption (Kwh/Kcal per unit of product) are calculated by comparing the twelve-month average energy consumption before implementing energy audit recommendations with a minimum three-month average after implementation.

Sectors

  • Manufacturing Industrial
  • Energy Conservation
  • Msme Subsidy
  • Tamil Nadu
  • Manufacturing
  • Energy Audit

Details last verified on 3 August 2026. Source: the issuer's published information.