EEG Aircon Grant Singapore (2026): Save on Energy Efficient Aircon

Last updated on: 16 April 2026

Intro

Businesses in Singapore can reduce electricity costs by upgrading to energy-efficient air conditioning systems through the Energy Efficiency Grant (EEG).
With over a decade of experience, we have helped all types of businesses save on electricity. This guide explains how the EEG aircon grant works, who qualifies, and how any business can upgrade their cooling systems while receiving government support.

Whether you operate a restaurant, gym, retail shop, school, office, or any other commercial space, this guide will help you understand how to benefit from the aircon EEG grant program.

What Does This Guide Cover?

This article explains:

• What the Energy Efficiency Grant (EEG) is
• Which businesses qualify for the grant
• Types of energy-efficient aircon systems
• How the EEG application process works
• Real aircon upgrade projects in Singapore

Why Energy Efficient Aircon Matters for Your Businesses?

Aircon is one of the largest sources of electricity consumption in commercial spaces.

Restaurants, offices, retail shops, and clinics rely on air conditioning for comfort, but older systems often consume significantly more power.

Energy-efficient air conditioning systems can:

• Reduce electricity consumption
• Improve cooling performance
• Lower long-term operating costs
• Support Singapore’s sustainability goals

To encourage businesses to adopt energy-efficient equipment, the Singapore government introduced the Aircon Energy Efficiency Grant (EEG).

Businesses can learn more about the program through the Business Grants Portal and Enterprise Singapore initiatives supporting energy efficiency improvements.

What is the EEG Aircon Grant?

The Energy Efficiency Grant (Base Tier) helps businesses reduce energy costs and carbon footprint by subsidizing the purchase of pre-approved energy-efficient equipment.

• • Support Level:

    • • SMEs: Up to 70% of qualifying costs
      • Non-SMEs: Up to 30% of qualifying costs

  • Grant Cap: S$30,000 per company
  • Valid Until: 31 March 2028
  • Application: Through the Business Grants Portal (BGP)
  • Technical Requirement: Minimum 4-ticks for single-split and 5-ticks for multi-split systems.

Top EEG-Approved System 3 to 5 Aircon Models

Brand	System Type	Model Numbers	EEG Eligible	Notes
Mitsubishi Electric	System 3	MXY-3H28VG, MXY-3H28VG2	Yes	#1 Selling brand in SG
	System 4	MXY-4H33VG, MXY-4H33VG2, MXY-4H38VG	Yes	For larger spaces
	System 5	MXY-5H48VG	Yes	Highest cooling capacity
Daikin	System 3–4	MKM50VVMG, MKM50ZVMG	Yes	iSmile Eco series
	System 4	MKM75VVMG, MKM75VVMG-HW, MKM75ZVMG	Yes	Cost-efficient cooling
	System 4	MKM85VVMG, MKM85ZVMG	Yes	Durable & reliable
	System 5	MKM100VVMG, MKM100ZVMG	Yes	Ideal for big offices
Panasonic	System 3	CU-3XU28YBZ, CU-3XU28YBZ-H	Yes	Retail sector eligible
	System 4	CU-4XU33YBZ, CU-4XU33YBZ-H, CU-4XU38YBZ, CU-4XU38YBZ-H	Yes	Retail sector eligible

1. Mitsubishi Electric: Singapore’s #1 Selling Aircon Brand

Mitsubishi Electric consistently ranks as the most popular air conditioner in Singapore for its reliability, energy efficiency, and quiet operation.

EEG-Approved System 3 to 5 Aircon Models:

• • System 3: MXY-3H28VG, MXY-3H28VG2
  • System 4: MXY-4H33VG, MXY-4H33VG2, MXY-4H38VG
  • System 5: MXY-5H48VG

2. Daikin: Trusted for Performance & Innovation

Daikin is a household name in Singapore, known for its iSmile Eco series that combines comfort with eco-friendly aircon.

EEG-Approved System 3 to 5 Aircon Models:

• • System 3 to 4: MKM50VVMG, MKM50ZVMG
  • System 4: MKM75VVMG, MKM75VVMG-HW, MKM75ZVMG
  • System 4: MKM85VVMG, MKM85ZVMG
  • System 5: MKM100VVMG, MKM100ZVMG

3. Panasonic: EEG Approved Under Retail Sector

Panasonic’s multi-split systems are known for their nanoe™ X air purification and strong durability. While not listed in every sector’s EEG list, specific aircon models are approved under the Retail category.

EEG-Approved System 3 to 4 aircon Models:

• • System 3: CU-3XU28YBZ, CU-3XU28YBZ-H
  • System 4: CU-4XU33YBZ, CU-4XU33YBZ-H, CU-4XU38YBZ, CU-4XU38YBZ-H

Types of Energy Efficient Aircon Systems for Businesses

Different commercial environments require different air conditioning systems.

Choosing the right aircon depends on the layout, ceiling height, and cooling requirements for your space.

How to Apply for the EEG Aircon Grant?

Check your eligibility by confirming your business sector. Confirm your business is registered and operating in Singapore (now open to all sectors!).

1. 1. Step 1: Check your eligibility: Confirm your business is registered and operating in Singapore (now open to all sectors!) and ensure you meet the local shareholding criteria.
   2. Select your aircon model: Choose from the pre-approved System 3-5 aircon models above.
   3. Get a quotation: From an authorized supplier (that’s where we come in!).
   4. Apply via BGP: Submit details, quotation, and supporting documents.
   5. Install your aircon & claim: Once approved, install the unit and submit proof of installation for reimbursement.

Benefits of Installing EEG-Approved Aircon

• • Lower monthly aircon electricity bills
  • Improved indoor comfort with advanced cooling control
  • Reduced carbon footprint
  • Significant cost savings from the grant

Real EEG Aircon Upgrade Projects in Singapore

Real experience is important when planning an aircon upgrade. Below are examples of projects completed for businesses. 

Case Study: Restaurant Aircon Upgrade (F&B)

Location: Casual dining restaurant in the CBD

Problem
The restaurant was using older ceiling cassette air-conditioning units that consumed a high amount of electricity and struggled to cool the dining area during peak hours.

What was done?
The restaurant upgraded to a Daikin energy-efficient cassette aircon system and applied for the Aircon EEG Grant.

Installation time
1-day installation during off-hours.

Result?

• Cooling performance improved significantly
• Electricity consumption reduced by approximately 30 percent
• Business received government support through the EEG program

Case Study: Office Aircon Upgrade

Location: Corporate office in a commercial building

Problem
The office had ageing split air conditioning systems that caused inconsistent cooling across meeting rooms and workspaces.

What was done?
The office upgraded to a Mitsubishi Electric inverter aircon designed for commercial office environments.

Timeline

Grant application: approximately 3 weeks
Installation: 1 day

Result?

• Improved temperature control across the office
• Reduced electricity consumption
• Quieter and more efficient operation. Factors That Affect Aircon Upgrade Costs

Aircon installation costs vary depending on several factors.

Common factors include:

• Size of the commercial space
• Type of aircon system selected
• Number of indoor units required
• Electrical and piping work
• Installation complexity

For accurate planning, businesses should conduct a proper site assessment before upgrading their systems.

FAQs

1. What is the EEG Aircon Grant in Singapore?
It’s a government grant that subsidizes up to 70% of qualifying costs (for SMEs) or 30% (for non-SMEs) for pre-approved energy-efficient air conditioners.

2. Which Mitsubishi Electric air-conditioners are EEG-approved?
For System 3 to 5: MXY-3H28VG, MXY-3H28VG2, MXY-4H33VG, MXY-4H33VG2, MXY-4H38VG, MXY-5H48VG. Mitsubishi is Singapore’s #1 selling air conditioning brand, trusted for reliability and performance.

3. Which Daikin models qualify for EEG?
MKM50VVMG, MKM50ZVMG, MKM75VVMG, MKM75VVMG-HW, MKM75ZVMG, MKM85VVMG, MKM85ZVMG, MKM100VVMG, MKM100ZVMG.

4. Can Panasonic air-conditioners be claimed under EEG?
Yes! Specific models such as CU-3XU28YBZ, CU-4XU33YBZ, and CU-4XU38YBZ are eligible for the Retail sector.

5. Why is Mitsubishi the most popular air-conditioner in Singapore?
It’s known for unmatched durability, quiet operation, high energy efficiency, and easy availability of spare parts.

6. How do I apply for the EEG Aircon Grant?
Through the Business Grants Portal, submit your quotation, submit the application, and install after approval.

7. How long does the EEG grant approval take?
Most applications are processed within a few weeks after submission through the Business Grants Portal.

8. Can offices apply for the aircon EEG grant?
Yes. As of April 2026, the grant has been expanded. All businesses registered and operating in Singapore, including offices, gyms, and tuition centers, can now apply for an upgrade.

EEG Grant Application Checklist

Before you apply or contact us, please make sure you have these ready:

• [ ] Business Registration: Is your company registered and operating in Singapore? (Open to all sectors)

• [ ] ACRA BizFile: A copy of your latest company registration.

• [ ] Local Shareholding: Ensure your company has at least 30% local shareholding.

• [ ] Financial Statements: Have your audited accounts or latest management accounts ready.

• [ ] System Choice: Have you picked a 5-tick energy-rated model from our list?

• [ ] Our Quotation: Contact us to get the official quote for your chosen system.

Next Steps

If your business is planning to upgrade its cooling system, it is important to choose the right energy-efficient aircon system for your space.

You may also wish to explore our guide on commercial aircon installation in Singapore, which explains how businesses choose the right systems for their premises.

Businesses planning a larger upgrade can also learn more about energy efficient aircon systems for offices and restaurants.

Author

Elvin Yeo
Founder, @bsolute Aircon

Elvin Yeo has spent more than a decade helping homes and businesses in Singapore improve cooling efficiency through professional air conditioning installation and energy-efficient solutions.