Funding & Grants
Finding funding to implement low carbon measures can be one of the most significant challenges to net zero action that businesses face.
Explore some of the options available below, which include grants, green financing, such as green loans, and community renewables schemes.
Local support:
Home Upgrade Grant – applications for grant funding under the Home Upgrade Grant have now closed. For support with energy saving improvements for your home, contact Better Housing Better Health, a one-stop-shop service for energy saving advice and access to retrofit grant funding schemes.
National support:
Boiler Upgrade Scheme (BUS) – a grant of up to £7,500 for property owners including businesses to cover part of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler.
Capital allowances – eligible businesses can fully expense the costs of certain new plant and machinery, including energy efficient, or low or zero-carbon technology, such as heat pumps and solar, and access 50% first-year allowances for special rate expenditure from April 2023 until 31 March 2026.
Clean Growth Fund – a climate venture capital fund investing in innovations that tackle the climate crisis.
Cycle to Work – supports employees to cycle to work, including by an electric bike, by making cycling more affordable, through a salary sacrifice scheme. Enables employees to hire cycles and/or safety equipment from their employer, or from a third party, in return for a monthly deduction from their gross salary, reducing the amount of pay on which tax and National Insurance Contributions are charged.
Energy Resilience Fund – for charities and social enterprises, provides a blended funded package of a grant (40%) and loan (60%) for projects of £25k-£250k towards energy saving measures or general technology, and/or to purchase energy efficient or environmentally friendly vehicles and equipment, helping bolster their energy resilience.
The Industrial Energy Transformation Fund (IETF) – designed to help businesses with high energy use to cut their energy bills and carbon emissions through investing in energy efficiency and low carbon technologies. Grant funding can be used for feasibility and engineering studies, and for the deployment of industrial energy efficiency and decarbonisation projects.
Improving Farm Productivity Grant – a capital grant for farmers and horticulturalists to help improve productivity and reduce their environmental impact. Stage 1 is now closed. Only invited organisations can submit a full application in stage 2.
Scottish & Southern Energy Network (SSEN) Powering Communities to Net Zero Fund – a £3m fund to support communities in the SSEN area to improve local resilience and in their transition to net zero with annual funding rounds until 2028. Non-profit organisations can apply for up to £20,000 towards the purchase and installation of low carbon technologies. Closed for applications however you can register your interest on the webpage for when the scheme reopens in 2025.
Solar PV (Low Carbon Hub) – businesses with a large roof, significant day-time energy use and the right aspect can host a community-owned solar PV array on their roof, at no cost. The Low Carbon Hub based in Oxfordshire look after the installation, operation and maintenance, so that businesses can access cleaner, cheaper electricity and cut their carbon emissions, whilst giving back to the community, with all profits going towards grant funding for more community-led climate action.
​Workplace Charging Scheme (WCS) – gives businesses, charities and public sector organisations £350 per socket towards the purchase and installation of electric vehicle (EV) charge points. Can be used in conjunction with the EV infrastructure grant for business staff and fleet car parks. Nb. If using both grants, the EV infrastructure grant must be used first, and for different charge points. Both close 31 March 2025.
Green finance:
Many of the UK banks offer green finance products for businesses. All products have different criteria however all aim to help towards the cost of purchasing green assets. Please note that this list is not exhaustive and is only intended as a start. It is essential that you do your own research and also seek professional, independent financial advice to find the right solution for your business.
Cooperative Bank Renewable Energy Funding Scheme
Lloyds Clean Growth Financing Initiative
Lloyds Energy Efficient Building Transition Loan
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The following lenders provide options for businesses delivering a positive social, cultural or environmental impact, and which align with that organisation’s values.
Virgin sustainable business loans
Ecology sustainable business mortgages