PEACE: Detailed Energy Audit — 75% Subsidy up to ₹1L for TN MSMEs — Frequently Asked Questions

The scheme covers 75% of the cost of the detailed energy audit, up to a maximum of ₹1,00,000 per audit. So if your audit fee is high enough, you receive ₹1 lakh; if 75% of your fee comes to less than that, you receive the lower amount. Only the professional charges of conducting the audit are counted when working out the subsidy.

No. Applications are accepted on a rolling basis — the scheme is always open, so there is no closing date or application window to plan around. You can apply once your unit is ready to go ahead with an energy audit.

The scheme is for existing manufacturing MSMEs located in Tamil Nadu. Service-sector and non-manufacturing enterprises are not covered. An enterprise that operates more than one unit can claim the concession separately for each unit.

Yes. The concession is available for a unit's first energy audit as well as for subsequent audits taken up after a minimum gap of three years from the earlier audit. If it has not been three years since your last audit, you would need to wait before claiming again.

DPIIT recognition is not among the conditions listed for this scheme. Eligibility here is defined by being an existing manufacturing MSME in Tamil Nadu and undertaking an eligible energy audit — those are the criteria the department assesses.

No. This is a subsidy, not an investment. The department does not take any equity, stake or shareholding in your enterprise, and the support does not have to be repaid — it simply offsets part of the audit fee once the audit is completed and certified.

Only two kinds of professionals qualify. You can engage a Bureau of Energy Efficiency (BEE) empanelled energy auditing firm or company, provided its audit team is led by a BEE-accredited Energy Auditor. Alternatively, you can engage a BEE-accredited individual Energy Auditor. Anyone outside these categories will not satisfy the scheme's requirements.

The subsidy is released after the energy audit is completed and the report is duly certified. The certified report is submitted to the MSME Department, which verifies it. Once the review is satisfactory, the eligible amount is paid to the MSME — or, if the unit took a loan to pay for the audit, directly to the bank so it can be adjusted against the outstanding loan account.

The certified report has to include specific recommendations with quantitative and qualitative details, the estimated outlay, projections of energy and cost savings, and the payback period if the recommendations are implemented. It should also contain an executive summary, the period during which the audit was conducted, and clear conclusions and recommendations for energy conservation measures.

Applications are made online through the Micro, Small and Medium Enterprises Department of the Government of Tamil Nadu portal. Register with your name, date of birth, Aadhaar number, email ID and mobile number, and set a password of at least 8 characters containing one uppercase letter, one lowercase letter and one numeral, then complete the captcha. Log in, go to Schemes and select PEACE: Detailed Energy Audit, then choose Apply Online → New Application. Fill the mandatory fields, accept the terms, declaration and privacy policy, and note the reference number shown on screen. Next, under Schemes → Upload Documents, enter your Application ID and upload the required documents in the specified format and size, checking them with the View option. Finally, tick the declaration boxes and submit; a confirmation that your application has reached the GM/DIC or RJD is sent to your registered mobile number. You can also track the application status online, and the portal may send email or SMS updates as it moves through the stages.

PEACE: Detailed Energy Audit — 75% Subsidy up to ₹1L for TN MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.

PEACE: Detailed Energy Audit — 75% Subsidy up to ₹1L for TN MSMEs is offered by Micro Small and Medium Enterprises Department, Government of Tamil Nadu, a government body. It is provided as non-dilutive funding.