What Energy Grants Are Available for Small Businesses?

The Government’s ambitious target of achieving net-zero carbon emissions by 2050 has led to a raft of energy grants to support small businesses in reducing their carbon footprint. These grants cover many initiatives, from installing electric vehicle (EV) charging points and heat pumps to upgrading to energy-efficient lighting and insulation.

This summary highlights the key energy grants available to SMEs across the UK and answers some frequently asked questions.

What is a Small Business Grant?

A small business grant is a sum of money provided by the Government, local authorities or other organisations to help companies cover specific costs or undertake projects that contribute to broader policy objectives. Unlike loans, grants do not need to be repaid, making them a desirable funding source for many business owners.

Energy grants, in particular, are usually aimed at supporting businesses that want to reduce their energy consumption, adopt greener practices or meet specific regulatory standards. They can cover a variety of projects, from installing renewable energy systems to improving building insulation.

Who is Eligible for Small Business Energy Grants?

Eligibility for small business energy grants can vary depending on the specific scheme and the location of your business. However, there are some standard criteria that most grants call for:

• Business Size: Typically, energy grants are only made available to SMEs, which, in the UK, are companies with fewer than 250 employees, a turnover of less than £36 million and a balance sheet total of less than £18 million.

• Trading History: Some schemes require businesses to have been trading for a specified period, typically 12 to 24 months, before applying for funding.

• Efficiency Goals: Energy grants usually support businesses with a clear commitment to reducing their consumption or carbon footprint.

• Location: Some grants are only available to businesses operating in specific regions if provided by local authorities.

• Ownership: Some schemes stipulate that the business must not be more than 25% owned by another enterprise, while others require the recipient to own or lease the premises.

How to Apply for Small Business Energy Grants

Applying for a small business energy grant typically involves a few key steps. While the application process varies depending on the specific grant, below are some general guidelines:

• Research Grants: Start by identifying the grants relevant to your business needs and location. Look into national, regional and local opportunities to maximise your chances of finding the right funding.

• Check Eligibility: Carefully review the eligibility criteria for each grant to ensure your business qualifies. Some grants may require you to have a minimum number of employees, financial records or specific plans.

• Get Quotes: Many energy efficiency grants require businesses to obtain quotes from certified installers or complete an energy audit to assess necessary improvements.

• Prepare Your Application: Applications usually require detailed information about your business, including trading history, financial details and the proposed project's scope.

• Submit Online: Most schemes have an online portal where you can submit your application. Be sure to meet the deadlines and provide all the necessary documentation.

• Follow Up: Once your application is submitted, the grant provider may request additional documentation. After approval, you'll be awarded the grants as an upfront payment or reimbursement upon project completion.

National Schemes

Workplace Charging Scheme (WCS)

Aiming to help businesses install EV charging points, the Workplace Charging Scheme is available across the UK mainland. SMEs can receive up to 75% of the installation cost, capped at £350 per socket, with a maximum of 40 sockets per applicant. The scheme closes on 31st March 2025.

Boiler Upgrade Scheme (England & Wales)

Businesses looking to replace outdated heating systems can benefit from the Boiler Upgrade Scheme, which offers grants of up to £7,500 for air or ground source heat pumps and £5,000 for biomass boilers. The scheme, running until 2025, helps offset some installation costs and is part of a broader effort to reduce reliance on traditional fuel sources.

Regional Schemes

Birmingham Commercial Vehicle Grant

For businesses operating within the Birmingham Clean Air Zone, this scheme offers up to £15,000 for heavy goods vehicle upgrades and £4,000 for light goods vehicles, helping companies meet regional emission standards.

Rother Business Energy Efficiency Grants (East Sussex)

Businesses in the Rother District can receive up to £5,000 to implement energy-efficient upgrades, including LED lighting, double glazing and air source heat pumps. Companies must contribute a minimum of £1,000 to the project.

Business Transition to Net Zero Grant (Norfolk & Suffolk)

With large-scale projects as the primary focus, this grant offers between £25,000 and £100,000 to SMEs looking to implement carbon reduction measures, particularly for clean energy production and recycling initiatives.

SME Loan Scheme

Scottish businesses can apply for loans of up to £100,000 for energy efficiency projects, with cashback grants of up to £30,000 available. Eligible projects include HVAC upgrades, solar panels and heat pumps.

East Ayrshire Net Zero Grant

SMEs in East Ayrshire can apply for funding of up to £3,000, covering 50% of costs for energy efficiency improvements such as installing renewable energy systems or upgrading lighting.

Green Business Loan Scheme

This scheme offers loans and consultancy support to help Welsh businesses decarbonise and save on energy bills. Grants can cover up to 50% of the costs for energy audits and low-carbon technologies.

Neath Port Talbot Green Renewable Fund

Grants of up to £50,000 are available for businesses investing in renewable energy in the Welsh region. Supported projects include wind turbines and solar panels.

Net Zero Business Grants Programme

North Somerset Council’s grants, running until 2025, offer up to £30,000 for energy efficiency projects like heat pumps, insulation and renewables. The council may provide funding up to 70% of the project cost.

Net Zero Worcestershire

Businesses in Worcestershire can access grants ranging from £1,000 to £10,000 for projects like energy-efficient lighting, renewable energy installations and insulation upgrades. This match-funded grant requires companies to cover 60% of the total cost.

In Summary

Whether your small business is looking to reduce energy bills, cut carbon emissions or comply with new regulations, numerous energy grants are available across the UK to support your green initiatives.

From national programmes like the Workplace Charging Scheme to more niche regional opportunities, these grants provide crucial financial support for SMEs embracing sustainable practices.

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