Community-led energy projects encouraged under NSW government initiative
A new $5 million NSW Government grant program will fund community energy groups and not-for-profit organisations to help households and communities lower energy costs and access renewable energy solutions.
The NSW Government has opened applications for the Community Energy Activation Program (CEAP), a $5 million grant initiative designed to help local organisations deliver energy education, guidance, and support to households across the state.
The program is aimed at Australian-based not-for-profit organisations and community energy groups that help NSW residents manage energy use and costs. It seeks to remove barriers that prevent communities from accessing energy-saving products and services.
According to NSW Climate and Energy Action, CEAP aims to reduce barriers for communities to access energy-saving products, improve awareness of available support, and deliver measurable benefits such as lower energy bills and reduced emissions.
Projects funded under CEAP must be completed by 30 April 2029, with grants ranging from $150,000 to $600,000. Applicants are required to contribute at least 10 per cent of project costs, which can be met through cash or in-kind support such as volunteer work or venue hire. Applications open on 27 November 2025 and close at 5:00 pm on 16 February 2026.
Who Can Apply
Eligible applicants include Australian not-for-profit organisations or community energy groups that advocate for household energy consumers or promote community energy initiatives. Applicants must operate within NSW and ensure their projects directly benefit NSW residents.
They must also hold Public Liability Insurance of at least $20 million, be financially solvent, and capable of entering into a funding deed. Any applicant providing consumer guidance or energy product recommendations must also hold Professional Indemnity Insurance of at least $5 million and employ qualified staff to deliver accurate advice.
Partnerships between organisations are encouraged, although only one eligible lead applicant will enter into a funding agreement with the NSW Government.
What Projects Can Be Funded
CEAP supports a range of community-driven activities, including:
-
Local energy education sessions or workshops
-
Tailored guidance for diverse or hard-to-reach audiences
-
Expert, face-to-face energy advice for households
-
Development of digital tools that connect consumers with NSW rebates or energy-saving services
-
Outreach and communication initiatives that encourage local participation
Funding cannot be used for capital purchases such as solar panels or batteries, or for normal business operations unrelated to the funded project.
Program Objectives
The CEAP aims to:
-
Support and expand community energy initiatives
-
Help households access rebates and energy efficiency programs
-
Build local understanding of renewable energy
-
Protect communities against future energy cost increases
A statement from the NSW Government notes that through trusted local engagement and practical tools, the program “empowers communities to lower energy bills and participate in the renewable energy transition.”
Application Process and Information Session
Applicants are encouraged to review the official grant guidelines and FAQs before submitting. All applications must be lodged through the NSW Government’s Grants Management System by the closing date.
An online information session will be held on 9 December 2025, providing an overview of eligibility, funding amounts, and advice on preparing competitive applications. Register here.
