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Energy Efficiency Grants Explained

The energy crisis is on everyone’s lips at the moment, putting particular pressure on SMEs. So what help is out there for these smaller businesses? 

Many government schemes offer loans, grants or subsidised energy-saving measures to support you with reducing your environmental impact. 

Not only does this improve your company’s green credentials and bottom line, but it’ll also take us a step closer to becoming a more energy-efficient nation – so we’re all winners.

But this doesn’t come without investment and this can be tough for SME owners. This is where the government support comes in, delivered through business energy grants. 

Will a business energy grant help my business?

There are numerous ways in which the government can help with energy efficiency grants, including:

  • Energy efficiency including production processes
  • Waste management and reduction
  • Sustainable development
  • The upfront costs of energy-efficient equipment

How do you go about getting business energy support?

  • The GOV.UK business finance and support finder is the best place for you to start
  • Your local council might be able to provide support for your business through energy efficiency funding and sustainable business growth grants 

Can my business energy supplier help?

Business energy companies may be able to help with business energy efficiency schemes and grants. This does vary from each supplier so it’s best to get in contact with your supplier to see if you’re eligible. If you’re after more information on small business energy suppliers then take a look at our guide.

Eligibility varies between suppliers but the following will usually be taken into account:

  • The size of your business
  • Your location 
  • Your business sector

There are also a variety of specific grants and schemes available to businesses within certain areas of the UK. England, Scotland, Wales and Northern Ireland all have different schemes for their specific countries. Take a look at them below:

Available to everyone in the UK:

  • BEIS Industrial Energy Efficiency Accelerator provides money for businesses seeking  to implement changes with low-carbon technology
  • The government announced a new Energy Bills Discount Scheme (EBDS) from April 2023 to April 2024 eligible for non-domestics in GB and Northern Ireland
  • Clean Growth funds allow companies that are looking for investment capital for low-carbon activities
  • The Green Economy scheme allows SMEs to buy and sell low-carbon products 
  • Vehicle charging point schemes through the Workplace Charging Scheme give businesses up to £350 per socket to install electric vehicle charging points

Available to businesses in England:

  • The Energy Bill Discount Scheme will give automatic assistance to the highest electricity and gas ratepayers between April 2023 to March 2024
  • Small businesses can receive up to £6,000 to install a heat pump or biomass boiler through the Boiler Upgrade Scheme
  • The Environment Land Management Scheme through the government provides funds for farming and land recovery that’s sustainable
  • Local Enterprise Partnership Growth Hubs provide advice for funding, growth and sustainability in 38 regions within England

Available to businesses in Scotland:

  • Energy efficiency business support service from Zero Waste Scotland – offering specialist advice and support to businesses to implement energy efficiency measures
  • An SME loan provides unsecured loans from £1,000 up to £100,000 for the installation of energy efficiency measures
  • SMEs can also apply for a 75% cashback grant of up to £10,000 towards the cost of renewable heating systems and a further 30% cashback grant of up to £10,000 for energy efficiency measures
  • From April 2022 there will be a new non-domestic advice service Business Energy Scotland (BES)

Available to businesses in Wales:

  • The government’s Boiler Upgrade Scheme gives up to £6,000 for small businesses to install a heat pump or biomass boiler
  • Green Growth Wales Scheme
  • A government-funded organisation offers specialist support in regional centres through Business Wales
  • Caerphilly Enterprise Fund allows for SMEs who are making property improvements, website costs and more in matching funds up to £2,000 – must be located within Caerphilly County

Available to businesses in Northern Ireland:

  • Energy and waste management consultancy
  • Resource service to manage waste and cost reduction
  • Investment funding for energy-saving equipment

As businesses across the UK look for ways to reduce their energy costs, it’s imperative that you find the right tariff for your organisation. Get in touch with our team today to find out more, either by requesting a quote here or by calling us on 0800 464 0991

All information presented here is correct at the time of writing (January 2022).