Micro, Small and Medium Enterprises Department
குறு, சிறு மற்றும் நடுத்தரத் தொழில் நிறுவனங்கள் துறை

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The Government have introduced Promotion of Energy Audit and Conservation of Energy (PEACE) scheme for promoting Energy efficiency in MSME units. Under this scheme the Government will reimburse 50% of the cost of conducting energy audit and 25% of the cost of machinery & equipments replaced, retrofit and technology acquired for the purpose of improving the energy efficiency, based on the recommendation of Energy Audit.

Objectives of the Schemes

  • Create awareness & educating MSMEs about benefits/advantages of new techniques/technologies for saving energy.
  • Undertaking indepth studies of high energy consuming MSME clusters and identify gaps and potential barriers for energy conservation, and promoting adoption of suitable techniques/technologies to achieve energy efficiency.
  • Encouraging MSME for adopting energy audits to improve energy efficiency and fuel substitution, and monitoring the implementation of recommendations.


  • Main objective is to identify the major sources of energy in use, identifying the lapses in energy usage, identifying areas to improve energy usage, determining the level of consumption of the energy sources and recommending measures that will enhance energy savings in the industry.
  • Eligible MSMEs shall file its claim within one year from the date of completion of Energy Audit.
  • Bureau of Energy Efficiency empanelled energy auditing firms/Cos., (with auditing teams led by Bureau of Energy Efficiency accredited Energy Auditors) or Bureau of Energy Efficiency accredited individual Energy Auditors only be engaged.


  • 50 % of the Energy Audit cost subject to a Maximum of Rs.0.75 lakh per energy audit per unit.
  • Enterprises having more than one unit may also avail this concession, separately for each unit.
  • The overall ceiling on subsidy should be applied not for the original energy audit and subsequent energy audit taken together, but should be applied separately for the original energy audit and the subsequent energy audit.
  • There should be a gap of minimum three years between the previous energy audit and the subsequent energy audit i.e. present energy audit.
  • The expenditure incurred towards professional charges of conducting an Energy Audit only is eligible.