Grants of up to $25,000 are on offer for hotels to upgrade their facilities in order to reduce their power bills, as part of a $10.2 million federal government program.
But the grants can't go towards new or replacement solar panels, batteries for solar systems or replacing vehicles.
Federal Energy Minister Angus Taylor is set to announce the program in Sydney on Thursday.
Hotels, motels and serviced apartments with up to 99 rooms will be able to apply for the grants from February 24 until early April unless the funding is exhausted.
Energy-saving projects on the list include replacing air conditioners with more efficient units, replacing fridges and getting double-glazed windows.
The hotel sector has been struggling with varying coronavirus restrictions across the country, domestic border closures and no international tourists.
Mr Taylor says the grants will help businesses long term.
"Energy costs are one of the biggest overheads for publicans and hotel owners and these grants will reduce these operating costs and help them reinvest in their business during this critical time," he said.
Tourism Accommodation Australia chief Michael Johnson says the grants will help hotels recover from the hardest 12 months the industry has experienced.
"Energy costs have become one of the largest ongoing expense for many hotels regardless of how well or how poorly a hotel is operating," he said.
"These grants will help hotels purchase capital equipment and complete work that will not only reduce their energy bills but will also reduce their carbon footprint."