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Grant Guide 7 January 2026 7 min read

EEG Efficiency Standards: Understanding EnterpriseSG Requirements

EEG requires equipment to meet specific energy efficiency standards set by EnterpriseSG. Understanding these standards helps you choose eligible equipment and verify compliance before applying. Energy efficiency standards ensure that EEG-funded equipment delivers real energy savings and environmental benefits. EnterpriseSG establishes standards based on Singapore's sustainability goals (aligned with Singapore Green Plan 2030), international best practices, sector-specific requirements, and periodic updates. This guide explains how standards work, what to look for, and how to verify compliance.

Verified 2 May 2026

EEG requires equipment to meet specific energy efficiency standards set by EnterpriseSG. Understanding these standards helps you choose eligible equipment and verify compliance before applying. For a complete overview of available equipment, see the EEG Equipment Guide.

From 7 April 2026, EEG Base Tier is open to all sectors. Efficiency standards for newly eligible sectors will be published by MTI later in 2026.

Why Efficiency Standards Matter

Energy efficiency standards ensure that EEG-funded equipment delivers real energy savings and environmental benefits. These standards:

  • Guarantee energy savings: Equipment meeting standards is proven to reduce energy consumption
  • Determine grant eligibility: Only equipment meeting EnterpriseSG standards qualifies for funding
  • Vary by tier: Base Tier uses pre-approved equipment (standards already verified), while Advanced Tier requires custom energy savings calculations

How EnterpriseSG Sets Standards

EnterpriseSG establishes efficiency standards based on:

  • Singapore’s sustainability goals: Aligned with the Singapore Green Plan 2030
  • International best practices: Referencing global efficiency standards and certifications
  • Sector-specific requirements: Different standards for different industries and equipment types
  • Periodic updates: Standards are reviewed and updated to reflect technological advances

The pre-approved equipment list on GoBusiness reflects current standards. For comprehensive details on EnterpriseSG’s sustainability framework, refer to the EnterpriseSG Sustainability Report 2025.

Common Efficiency Standards by Equipment Type

LED Lighting

EEG supports these LED lighting categories:

  • LED self-ballasted lamps
  • Direct LED replacements for CFL (compact fluorescent lamps) or LFL (linear fluorescent lamps)
  • LED tube and strip lights
  • LED circular tubes

What to look for:

  • High lumens per watt (efficiency)
  • Appropriate color rendering index (CRI) for your application
  • Certifications from recognized bodies

Air-Conditioners

Standards vary by capacity and type:

TypeCapacityMinimum RatingRefrigerant GWP
Split unitsUp to 10kW5-ticks≤ 750
Split unitsAbove 10kW3-ticks≤ 750 (if available)
3-phase VRFAny3-ticks≤ 750 (when available)

Key requirements:

  • Minimum tick rating as specified above
  • Refrigerant with Global Warming Potential (GWP) ≤ 750
  • Higher tick ratings (4-5 ticks) are preferred for better efficiency

Refrigerators

Requirements differ for household vs commercial units:

TypeMinimum RatingTechnology RequirementRefrigerant GWP
Household3-ticksStandard≤ 15
CommercialNot specifiedInverter technology requiredNot specified

Key requirements:

  • Household refrigerators: Minimum 3-ticks rating with low-GWP refrigerant (≤ 15)
  • Commercial refrigerators: Must incorporate inverter technology for variable speed operation

Cooking Hobs

Requirement: Must utilize induction technology

Induction hobs are more energy-efficient than traditional gas or electric hobs because they:

  • Heat cookware directly (less heat loss)
  • Provide precise temperature control
  • Reduce kitchen cooling load

Water Heaters

Requirement: Must employ heat pump technology

Heat pump water heaters extract heat from ambient air, making them significantly more efficient than traditional electric or gas water heaters.

Clothes Dryers

Requirement: Must use heat pump technology

Heat pump dryers recycle heat within the system, reducing energy consumption compared to conventional vented or condenser dryers.

Motors

For manufacturing and industrial applications:

  • IE3: Standard efficiency (minimum for many applications)
  • IE4: Premium efficiency
  • IE5: Ultra-premium efficiency (highest standard)

Note: Higher IE ratings (IE4/IE5) are preferred for EEG eligibility, especially in manufacturing sectors.

Compressors

For air compressors and similar equipment:

  • Variable speed drive (VSD) technology preferred
  • Specific power consumption requirements vary by application
  • Energy efficiency ratio (EER) or coefficient of performance (COP) standards apply

Understanding Efficiency Ratings

Tick Rating System

Singapore uses a 1-5 tick energy efficiency rating system:

TicksEfficiency LevelMeaning
5 ticksMost efficientHighest energy savings
4 ticksVery efficientExcellent energy savings
3 ticksEfficientGood energy savings (minimum for many EEG equipment)
2 ticksModerateBelow EEG requirements
1 tickLeast efficientNot eligible for EEG

Where to find it: Look for the tick rating label on equipment or in product specifications. The label is mandatory for regulated appliances in Singapore.

GWP (Global Warming Potential)

GWP measures how much a refrigerant contributes to global warming compared to CO₂ over 100 years.

EEG Requirements:

  • Air-conditioners: GWP ≤ 750
  • Household refrigerators: GWP ≤ 15

Why it matters: Lower GWP refrigerants reduce environmental impact if they leak. This aligns with Singapore’s climate goals.

Other Rating Systems

  • IE Classes (Motors): International Efficiency classes from IE1 (lowest) to IE5 (highest)
  • EER (Energy Efficiency Ratio): Cooling output divided by energy input (higher is better)
  • COP (Coefficient of Performance): Similar to EER, used for heat pumps and chillers
  • Minimum: The lowest rating that qualifies for EEG (e.g., 3-ticks for some equipment)
  • Recommended: Higher ratings (4-5 ticks) that provide better energy savings and may qualify for higher funding

Verifying Equipment Compliance

Method 1: Check Pre-Approved List

The easiest way to verify compliance:

  1. Visit GoBusiness Gov Assist equipment catalog
  2. Filter by “Energy Efficiency Grant”
  3. Select your sector and equipment category
  4. Browse approved models with verified specifications

Advantage: If equipment is on the pre-approved list, standards are already verified.

Method 2: Read Product Specifications

For equipment not yet on the pre-approved list (Advanced Tier):

  1. Check the tick rating label on the equipment or in product brochures
  2. Verify refrigerant GWP in technical specifications (for AC and refrigeration)
  3. Confirm technology type (induction, heat pump, inverter, etc.)
  4. Look for certifications from recognized bodies (e.g., Energy Star, Singapore Green Label)

Method 3: Request Vendor Documentation

Ask your vendor for:

  • Product data sheets with efficiency specifications
  • Energy efficiency certificates
  • Compliance documentation showing standards met

Certifications to Look For

  • Singapore Energy Label: Mandatory for regulated appliances
  • Energy Star: International energy efficiency certification
  • Singapore Green Label: Environmental certification
  • ISO certifications: For industrial equipment

Standards and Grant Eligibility

Base Tier: Pre-Approved Equipment

  • Equipment on the pre-approved list has already met EnterpriseSG standards
  • No need to verify standards yourself—the list is the verification
  • Support: Up to 70% for SMEs, 30% for non-SMEs, capped at S$30,000

Advanced Tier: Custom Assessment

  • Equipment doesn’t need to be pre-approved
  • Must demonstrate energy savings above 350 tonnes CO₂ over equipment lifetime
  • Standards are assessed through energy savings calculations
  • Support: Varies based on energy savings, up to S$350,000

How Standards Affect Funding

  • Higher efficiency = Better savings: More efficient equipment may qualify for higher funding amounts
  • Technology requirements: Equipment must meet minimum technology standards (e.g., induction, heat pump)
  • Sector-specific: Some sectors have additional requirements beyond basic standards

Common Questions

What if my equipment isn’t on the pre-approved list?

For Base Tier, equipment must be on the pre-approved list. For Advanced Tier, you can apply with equipment not on the list, but you must demonstrate energy savings of at least 350 tonnes CO₂.

Can I use equipment that exceeds standards?

Yes. Equipment that exceeds minimum standards (e.g., 5-ticks instead of 3-ticks) is eligible and may provide better energy savings. Higher efficiency equipment is always preferred.

How often are standards updated?

EnterpriseSG reviews and updates standards periodically to reflect technological advances and sustainability goals. The pre-approved equipment list is updated accordingly. Check the GoBusiness catalog for the most current list.

Where can I learn more about energy management best practices?

The SME Sustainability Hub provides comprehensive guides on energy management, carbon emissions, and sustainability practices beyond just equipment standards.

EEG Guides

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