- Retrofitting of energy efficiency equipment in existing facilities, i.e. investments in equipment, systems and processes that enable reduction in energy consumption in a commercial or industrial enterprise's operations.
- Greenfield projects are not eligible except for a full relocation of existing production to a new location while the existing one is demolished.
- Where the proposed energy efficiency project also results in increased production volume or operating capacity, the potential energy savings shall be calculated per unit of production or operating capacity, multiplied by the new production volume or operating capacity.
- Capacity expansion of existing production facilities is eligible if existing equipment is replaced with that of higher capacity with the following conditions: (i) the capacity expansion should be less than double the current capacity and (ii) the energy consumption per unit of output is reduced as compared to a baseline as a result of such replacement.
- At least 20% energy savings or 20% CO2 emission reductions