What is the Energy Efficiency Grant (EEG) for air compressors in Singapore?

The Energy Efficiency Grant (EEG) is a Singapore government initiative designed to help businesses, particularly SMEs, improve energy efficiency and manage costs by co-funding the purchase of pre-approved energy-efficient equipment, such as new air compressors.

How do I calculate my potential energy savings with a new air compressor?

You can calculate your potential savings by using a simple formula: Annual Energy Cost = (Motor kW) x (Load Factor) x (Operating Hours/Year) x (Electricity Tariff $/kWh). By comparing the cost of your current compressor to a more efficient model, you can determine your annual savings.

How much funding can I get from the EEG Grant?

The EEG Grant provides up to 70% funding for the cost of new pre-approved equipment, capped at S$30,000 per company. This significant co-funding can dramatically reduce your capital outlay and shorten the payback period.

How can Winston Engineering help me with the EEG Grant?

As a pre-approved vendor for EEG-ready air compressors, Winston Engineering can provide a free, no-obligation calculation of your potential energy savings. We can guide you through the process and help you identify the most suitable energy-efficient equipment for your business.

How to Calculate Your Exact Savings with the EEG Grant for Air Compressors

by andrew koo | Sep 3, 2025 | Articles

Energy Efficiency Grant for Air Compressors | Winston Engineering

How to Calculate Your Exact Savings with the EEG Grant for Air Compressors

Is It Really $30,000?

Did you know your industrial air compressor could be one of the biggest energy guzzlers in your facility, costing you over $1,000 a month to run?

The good news is, Singapore’s **Energy Efficiency Grant (EEG)** can slash those costs dramatically. But how much can you actually save? This guide will provide a simple formula to calculate operational costs and the massive savings a new, grant-subsidised compressor can deliver.

The True Cost of Running Your Air Compressor

The energy consumption of your air compressor depends on a few key factors:

Motor Power (kW): The size of the compressor’s motor.
Load Factor (%): How hard it’s working on average.
Operating Hours: Hours per day, days per year.
Electricity Tariff ($/kWh): Your current electricity rate in Singapore.

Use the following formula to calculate your annual energy cost:

Annual Energy Cost = (Motor kW) x (Load Factor) x (Operating Hours/Year) x ($/kWh)

Calculating Your EEG Grant Savings

A new, energy-efficient compressor could be 10-15% more efficient or more. For the same output, a new compressor might use only 65 kW.

New Annual Cost:

65 kW x 0.7 x 4,160 hours/year x $0.29/kWh = $43,916

Annual Savings:

$47,418 – $43,916 = $3,502

The EEG grant covers up to 70% of the cost of new pre-approved equipment, capped at $30,000. With the grant covering a large portion of the capital cost, your payback period could be under 2 years, and you’ll enjoy decades of lower energy bills.