ENERGY CONSERVATION SCHEME

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ENERGY CONSERVATION SCHEME

Energy Conservation Scheme – Empowering MSMEs Toward Sustainable Growth in Haryana

Introduction

In today’s rapidly evolving industrial landscape, energy efficiency is not just a choice—it is a necessity. Rising electricity costs, environmental concerns, and global standards have made energy conservation a top priority for every forward-looking business. Recognizing this, the Government of Haryana, under the Haryana Enterprises & Employment Policy (HEEP) 2020, introduced the Energy Conservation Scheme on June 8, 2021.

This proactive initiative is designed to assist Micro, Small, and Medium Enterprises (MSMEs) in identifying energy inefficiencies and implementing corrective measures through energy audits and subsidized equipment upgrades. At Advice Consultant, we are committed to helping MSMEs tap into this powerful scheme to reduce operational costs and boost profitability while contributing to a cleaner environment.

Why Energy Conservation Matters

Energy conservation is more than just cutting electricity bills—it involves optimizing processes, enhancing competitiveness, and supporting India's environmental commitments under international climate agreements.

Key Benefits of Energy Efficiency:

  • Reduced energy consumption and operational costs

  • Lower carbon footprint and pollution levels

  • Improved machinery performance and longer equipment life

  • Enhanced compliance with environmental norms and green certifications

  • Better brand image and eligibility for green financing

The Energy Conservation Scheme enables MSMEs to become part of this sustainable revolution with structured government support.

Objectives of the Energy Conservation Scheme

The core objectives of the Haryana Government's scheme include:

  • Promoting sustainable industrial practices

  • Encouraging the adoption of energy audits as a diagnostic tool

  • Providing financial assistance for upgrading to energy-efficient equipment

  • Reducing dependency on non-renewable energy sources

  • Boosting the overall energy productivity of the MSME sector in Haryana

Financial Assistance Offered Under the Scheme

The scheme comprises two key components:

1. Energy Audit Assistance

An Energy Audit is a systematic examination of energy usage within an enterprise, identifying areas where energy is being wasted and recommending improvements.

  • 75% reimbursement of the cost of conducting the energy audit

  • Maximum subsidy cap of ₹2,00,000 per enterprise

  • Reimbursement is only provided if the recommendations of the audit are implemented

This audit forms the backbone of any energy conservation strategy, offering technical insight into real-time inefficiencies.

2. Capital Equipment Subsidy

Post-audit, enterprises can install energy-saving equipment recommended by the audit. Financial aid is granted to cover a portion of this cost.

Subsidy rates depend on the location (block category) of the enterprise:

  • 50% of the equipment cost in ‘D’ category blocks

  • 40% in ‘C’ category blocks

  • 30% in ‘B’ category blocks

  • 20% in ‘A’ category blocks

Maximum assistance under this head is ₹20,00,000, and support is eligible once every five years.

Eligibility Criteria

To qualify for the benefits of this scheme, an enterprise must meet the following criteria:

  • Must be a registered MSME located in Haryana

  • Should have conducted the energy audit on or after 01.01.2021

  • Must purchase and install the recommended energy-efficient equipment before 31.12.2025

  • Should be Udyam-registered and have a valid Haryana Udhyam Memorandum (HUM)

  • Must apply for the subsidy within 3 months of completion of the audit or equipment purchase (whichever is later)

At Advice Consultant, we assist MSMEs in ensuring they meet all eligibility benchmarks before initiating the application process.

Time Frame for Application

Strict timelines are set under the scheme to ensure discipline and transparency:

  • Enterprises must file a reimbursement application within 3 months from either:

    • The date of completion of the energy audit, or

    • The date of purchase and installation of capital equipment, whichever is later

Delays beyond this period may result in rejection of claims. Timely documentation and submission are therefore critical.

Required Documentation

To claim assistance, the following documents are required:

  1. Udyam Registration Certificate

  2. Haryana Udhyam Memorandum (HUM)

  3. Proof of energy audit conducted (invoice, audit report, etc.)

  4. Certificate of implementation of energy audit recommendations

  5. Purchase invoices and installation certificates of energy-efficient equipment

  6. Photographs of installed equipment

  7. Electricity bills (before and after implementation)

  8. Bank statement showing payment transactions

  9. Affidavit or undertaking stating the equipment has been installed and is operational

Let Advice Consultant handle this complex documentation so you can focus on running your business.

Why Choose Advice Consultant?

As a trusted name in subsidy consulting, Advice Consultant brings unparalleled expertise in helping MSMEs navigate government schemes across Haryana.

We Offer:

  • Detailed eligibility assessment

  • Certified energy audit assistance via authorized partners

  • Preparation of audit reports and DPRs

  • Accurate documentation and application support

  • Follow-up with government departments

  • End-to-end compliance management


Real-World Impact: Case Study Snapshot

A Faridabad-based engineering unit, classified under the 'C' category block, recently availed this scheme through Advice Consultant. After conducting an energy audit, they installed energy-efficient motors and automated power controls, resulting in:

  • 30% reduction in monthly electricity consumption

  • Payback period of less than 10 months

  • Subsidy of ₹16 lakh received, reducing overall capital investment

Conclusion

The Energy Conservation Scheme is more than a subsidy—it is a roadmap to modernizing your operations, reducing overheads, and becoming a responsible enterprise contributing to India’s green future. With government support of up to ₹20 lakhs and up to 75% audit reimbursement, this is the ideal time for Haryana MSMEs to embrace energy efficiency.

Don’t let this opportunity pass you by. Let Advice Consultant simplify the process and unlock the full potential of your enterprise through sustainable energy practices.

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