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Energy Audit Scheme

Energy Audit Scheme

Energy Audit Scheme

As a part of the Energy Conversion Action plan, the Haryana department of renewable energy has proposed a scheme to conduct an energy audit in Micro, Small & Medium Enterprises (MSME) units. Under this scheme, the Haryana Government will reimburse 75% of the cost of conducting an energy audit and 50% subsidy is provided on the cost of capital equipment required to conserve energy. In this article, we look at the Energy Audit Scheme in detail.

Also, read about Scheme for Promotion of Energy Audit & Conservation of Energy 

Purpose of Energy Audit

The main purpose of implementing an energy audit by the MSME is to optimise the energy consumption, which leads to energy saving and money saving in electricity bill.

Eligibility Criteria

All existing MSME units in the State of Haryana having Entrepreneurs Memorandum (EM Part-II) or Udyog Aadhar under the MSME Development Act is eligible for this scheme.

Note: Financial assistance will be provided to such enterprises only if the energy audit has been performed by an Energy Auditor certified by the Bureau of Efficiency (BEE). Also, the eligible units should satisfy the following conditions:

  • The financial assistance on the cost of capital equipment will be released if there has been at least a 15% reduction in monthly electricity consumption after conducting the audit.
  • The investment in machinery, equipment and new plants to enhance energy efficiency is eligible for subsidy under this scheme.
  • The unit must have obtained CLU or NOC from concerned authority., if applicable.
  • The unit must be in commercial production.
  • The unit must be in regular production at the time of disbursement of funds.
  • The item of the manufacturer should not fall under the negative list as specified by the State Government from time to time.

Quantum of Assistance

The eligible MSME units will be provided with a reimbursement of 75% of the energy audit cost that is limited to Rs. 2 lakhs per energy per audit. And 50% subsidy on cost of capital equipment required for undertaking measures to conserve energy, which is limited to Rs. 20 lakh would be provided to an eligible Micro, Small & Medium Enterprise.

Operative Period

The assistance for the energy audit will be applicable for five years. The MSME units which have undertaken energy audit and purchased equipment after 14.08.2015 and before 14.08.2020 are eligible under this scheme.

Scope of Work

The detailed energy audit will be conducted under the following areas:

  • Review of present electricity, fuel oil & estimation of energy consumption in various load centres like lighting, air-conditioning, water pumping etc.
  • Review of present electrical distribution like Single Line Diagram (SLD), transformer loading, cable loading, normal and emergency loads, electricity distribution in various areas/ floors etc.
  • Review of the present lighting system, lighting inventories etc.
  • Review of present HVAC system like central AC, window AC, split AC, package AC, Water Coolers and Air Heaters etc.
  • Review of DG set operation.
  • Review of water pumping, storage and distribution systems.
  • Performance assessment of hot water generators or thermic fluid heaters like an estimation of efficiency etc.
  • Conducting the motor load survey of all drives to estimate the loading percentage.
  • Detail review of present energy monitoring and accounting system in terms of metering, record keeping, data logging, periodic performance analysis etc.
  • Review of present maintenance practice, replacement policies, and building safety practices as applicable to high rising buildings and recommendations for improvements.

Documents Required

The below-following documents are to be furnished while applying for the subsidy.

  • Copy of application in the prescribed format to be enclosed.
  • Copy of Entrepreneurs Memorandum (EM) part II or UAM registration.
  • Certified copy of Incorporation/ Partnership deed.
  • Power of attorney or Board resolution
  • Copy of No Objection Certificate (NOC) or Change of Land Use (CLU) from concerned authority, if applicable.
  • Copy of first sale bill.
  • CA certificate of expenditure (in original) furnishing the details as per the prescribed format.
  • Copy of the bills raised by the certifying agency is required.
  • Copy of proof of payment.
  • Copy of last year audited balance sheet of the unit to be furnished.

Time Limit

Eligible units should submit its claim for the reimbursement of the expenses incurred in conducting the energy audit, in all aspects within three months from the date of completion of an energy audit or purchase of capital requirements.

Concerned Authority for Sanction

The Director of Industries and Commerce is responsible for the sanction of assistance for medium enterprises, and additional director of industries would be the concerned authority to sanction the fund for micro and small enterprises within 30 days from the date of completion of the claim.


The Secretary of Industries and Commerce, Haryana would be the concerned authority to make clarifications of any provision of this scheme.


In the case of rejection of the application, an appeal can be made to the Principal Secretary within 30 days of communication from the concerned authority. The order passed by the Principal Secretary in appeal would be the final and binding.

Penal Action

In case of any assistance availed from the government by providing false information, then the applicant is required to refund the assistance along with the penal interest at the rate of 12% per annum and also will be debarred from the grant of any assistance or incentive from the State Government.

Application Procedure

The applicant will have to follow the given procedure to apply for the energy audit scheme in Haryana:

Step 1: The applicant is required to make an application with the listed documents to the official portal of the department for the reimbursement of expenses incurred in conducting energy audit & purchase of capital equipment.

Note: The applicant should apply for the scheme within three months from the date of completion of an energy audit or purchase of capital equipment.

Step 2: The Director of Industries & Commerce will verify the duly filled application form. If any default, the same will be communicated to the applicant within ten working days.

Step 3: Then, the applicant needs to make corrections in the application within a specified time of 8 weeks and resubmit the same.

Step 4: In case the corrections are not made within the prescribed time, the claim will be filled by the concerned authority under intimation to the applicant through email.

Step 5: A claim application so filed may be reverified by the Principal Secretary Industries & Commerce in 30 days from the date of rejection by the concerned authority.

Note: The enterprise is not required to submit any additional document other than specified above without approval of the concerned authority.

The application form for the energy audit scheme is reproduced below in the pdf format:

Screenshot from 2019-09-20 17-20-01