Energy Australia now installing subsidised LED light bulbs in Canberra businesses

Energy Australia will join current provider ActewAGL to give eligible businesses subsidised lighting upgrades, under the ACT's Energy Efficiency Improvement Scheme (EEIS).

The residential EEIS, which came to an end last year, installed more than one million energy saving items in 75,000 Canberra homes.

Sustainability minister Shane Rattenbury said the program could achieve savings of up to $192 million for ACT businesses by 2020.

"The announcement of a second provider is particularly exciting for consumers as having two providers in the market for the first time will increase choice for consumers and drive competition," Mr Rattenbury said in a statement.

"The upgrades will be heavily subsidised under EEIS and, depending on the business type, the current lighting in place and the specific lighting requirements, this may even cost nothing."

The EEIS is funded by the electricity retailers, who will in turn pass on a portion of their costs to their customers.

It requires electricity retailers to provide subsidised services to help ACT households and small to medium businesses save energy.

The government estimated the scheme added 62 cents to the average household's weekly bills but when implemented would save $5 per week.