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 offers manufacturing MSMEs up to ₹10 lakh to act on energy audit recommendations and cut energy use by at least 10%.

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 operates the Promotion of Energy Audit and Conservation of Energy (PEACE) initiative, which supports energy efficiency in the state's manufacturing MSME sector. The scheme responds to the heavy energy consumption that small businesses contend with by encouraging them to act on the recommendations produced by detailed energy audits.

Financial incentives are offered so that MSMEs can bring down running costs through reduced electricity bills, sharpen their competitive position, and add to wider environmental sustainability objectives. Support under the programme is directed at the "Implementation of Energy Audit Recommendations" component of the broader PEACE scheme, so that enterprises receive backing to make concrete energy conservation investments.

This approach delivers gains at the level of the individual enterprise by strengthening its bottom line, while also matching the state's stated commitment to sustainable industrial practices and environmental stewardship.

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

- Manufacturing MSMEs operating in Tamil Nadu. - Energy audits must have been completed. - A reduction of no less than 10% in energy consumed per unit of product manufactured, measured against the average of the preceding 12 months, must have been recorded. - Only investments made subsequent to the energy audit qualify for the subsidy. - A minimum interval of three years must separate the previous energy audit from the current one. - Enterprises running more than one unit may submit a separate application 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 (www.msmeonline.tn.gov.in). - Select 'Login / Registration' from the top ribbon. - Enter the required details — Name, Date of Birth, Aadhaar Number, Email ID, Mobile Number — and set a new password. The password must be at least 8 characters long and include 1 upper case letter, 1 lower case letter, and 1 numeric character. - Enter the captcha code and select 'Register'.

**Step 2: Login**

- Open the Login Page (www.msmeonline.tn.gov.in/registration.php) and select 'Login'. - Enter the credentials sent to your registered Email ID and Mobile Number.

**Step 3: Form Filling**

- Once logged in, hover over 'Schemes' in the top ribbon and select the relevant scheme from the dropdown. - Hover over 'Apply Online' in the top ribbon 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). - Review the details you have entered, accept the terms and conditions, declaration, and privacy policy, then select 'Proceed'. - Note the reference number displayed on the screen and select 'Close'.

**Step 4: Upload Documents**

- Hover over 'Schemes' in the top ribbon and select 'Upload Documents' from the dropdown. - On the page that opens, enter the Application ID and select 'Submit'. - On the following page, upload all mandatory documents in the prescribed format and size. - Once uploaded, select 'View' to check that the documents are correct.

**Step 5: Submission**

- Tick all the checkboxes at the bottom of the screen and select 'Submit Application'. - A message confirming submission of the online application to GM/DIC / RJD will arrive on your mobile phone.

**(Optional) Step 6: Track Application Status**

- You can check your application status on the portal (www.msmeonline.tn.gov.in/incentives/app_track.php?id=Track%20Your%20Status). The portal may also send updates about your application status by email or SMS.

Apply on the issuer's site

How applications are assessed

Applications are submitted online and reviewed by the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu. The assessment centres on whether the applicant meets every stated eligibility condition — the status of the energy audit, the particulars of the proposed implementation plan, and, most importantly, whether energy savings of at least 10% have been achieved after implementation.

Release of the subsidy depends on the energy audit recommendations being implemented successfully and verified. Certification by an independent, authorised energy auditor is required. This verification ensures the financial incentive is extended only where energy conservation has been demonstrated.

Frequently asked questions

Who is eligible for this incentive?

Manufacturing MSMEs in Tamil Nadu qualify if they have completed an energy audit and cut specific energy consumption by at least 10% against the average of the preceding 12 months; those running more than one unit may apply for each unit separately.

What is the maximum subsidy amount?

The highest subsidy payable is ₹10,00,000, which meets half the cost of eligible components for putting energy audit recommendations into practice.

What investments are eligible for the subsidy?

Eligible costs cover energy-saving technology, replacement equipment for energy conservation, new machinery or accessories bought and installed for energy efficiency, and modifications, alterations or retrofits to existing machinery for the same purpose, provided the investment is 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, duly certified by an energy auditor, have been successfully implemented. Where the unit has taken a loan for the implementation and the loan account is still active, the subsidy may be released directly to the bank for adjustment against that loan.

Is there a waiting period between energy audits?

Yes. Eligibility requires a gap of at least three years between the earlier energy audit and the current one.

How is the percentage of energy savings calculated?

Savings in specific energy consumption (kWh/Kcal per unit of product) are calculated by comparing a twelve-month average energy consumption prior to implementing the energy audit recommendations against a minimum three-month average after implementation.

Sectors

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

Details last verified on 18 September 2026. Source: the issuer's published information.