WA Government offers manufacturing energy investment loans

The WA Government has released its Plan for Affordable Energy, outlining how it will deliver affordable, reliable and lower-carbon energy for business while supporting investment and economic growth.

A key initiative in the plan is the $150 million Made in WA Energy Affordability Investment Program (MEAIP), which is now open for applications and will provide low-interest loans of up to $15 million to help manufacturers install solar and battery systems and upgrade equipment to take advantage of cheaper energy.

The government says the Plan for Affordable Energy has been developed in response to industry feedback from the government’s Productivity Roundtable, and aims to tackle the growing cost pressures facing Western Australia from aging coal-fired power stations and changing energy markets.

It also responds to calls from an alliance of industry, investors, unions and advocacy bodies for a strong renewable energy target as a signal of the state’s intent. Investor groups have indicated a target will help mobilise private sector investment in the projects needed to unlock new sources of affordable energy.

The plan is centred on delivering more renewable energy, backed by battery storage and flexible WA gas, to lower energy costs, strengthen the state’s competitiveness, and support the industries of the future.

The plan also includes:

• a target of 75% renewable energy generation on the South West Interconnected System by the 2030–31 financial year
• ongoing support for household solar, batteries and electric vehicles
• continued support for WA’s domestic gas reservation policy and a future gas security strategy
• transitional measures to ensure consumers do not overpay for reserve capacity.
   

“Every Western Australian with rooftop solar knows that renewable energy is the cheapest form of energy,” said Premier Roger Cook. “Our Plan for Affordable Energy is about getting more renewables onto the grid, so that all Western Australians can benefit from secure, more affordable energy.

“In addition to getting more renewables into the system for the long term, my government is building on our Residential Battery Scheme by providing low-interest loans to WA manufacturing businesses, so they can access solar, batteries and energy-efficient equipment to keep their energy costs down in the meantime.”

The MEAIP is a $153.3 million low-interest loan program, administered by the Department of Energy and Economic Diversification. Loans of between $300,000 and $15 million are available to manufacturers in eligible target sectors to bring forward investment into energy efficiency, renewable energy, energy storage, electrification and advanced manufacturing projects.

The program will be delivered through two funding streams:

• Stream 1: Energy Efficiency, supporting projects that improve energy efficiency or energy cost-competitiveness.
• Stream 2: Energy Efficiency and Advanced Manufacturing, supporting integrated projects that combine eligible energy efficiency investments with advanced manufacturing technologies to deliver an energy cost-competitiveness benefit alongside improved manufacturing capability, capacity or productivity.
   

Applications close Tuesday, 23 February 2027.

Image credit: iStock.com/GoAerials