Established UK businesses can fund energy-saving and decarbonisation projects through green and net-zero grants (for insulation, lighting, heating, efficient equipment and renewables like solar) and through finance — government-backed loans and asset finance — where grants cover only part of the cost or aren’t available. Grants usually need match funding and combine well with finance, and the energy savings can help fund the repayments.
Key takeaways
- Green/net-zero grants fund efficiency measures and renewables like solar.
- Finance (GGS-backed loans, asset finance) can fund larger projects.
- Grants usually require match funding and combine with finance.
- Energy savings can help fund the repayments on financed projects.
- Beyond the grant, efficiency cuts costs and improves resilience.
- Check national and regional schemes via the business support finder and growth hubs.
With energy costs a major concern for many businesses, government energy-efficiency funding offers a route to cut bills and carbon while lowering the upfront cost of doing so. Established businesses can combine grants with finance to fund everything from insulation to solar. This guide explains what funding is available, who is eligible, and how to access it.
What energy-efficiency funding covers
Energy-efficiency and decarbonisation funding typically supports measures such as:
- Insulation and building-fabric improvements.
- Efficient lighting, heating and controls.
- More efficient equipment and processes.
- Renewable energy, such as solar, where supported.
The eligible measures depend on the scheme and its objectives, and availability varies by region and over time.
Grants for energy efficiency
Green and net-zero grants provide non-repayable funding toward energy-saving and decarbonisation measures. Because availability varies by region and these schemes can be local, check the government’s business support finder, your local growth hub, local authorities, devolved programmes and energy or sector bodies. Monitor both national and regional schemes, as local decarbonisation funding can be valuable and less widely known.
Using finance for energy projects
Where grants cover only part of the cost — or are not available — finance can fund energy-efficiency projects. Government-backed finance such as the Growth Guarantee Scheme, and asset finance for equipment such as solar or efficient machinery, let you proceed without a large upfront sum. A particular attraction is that the energy savings can help fund the repayments, so the project partly pays for itself over time.
For a bigger project like solar, combine a grant for part of the cost with finance for the rest — and let the energy-bill savings contribute to the repayments.
The business case beyond the grant
Energy-efficiency investment is not only about the funding. The measures can cut running costs, improve resilience to volatile energy prices, help meet growing customer and supply-chain expectations on sustainability, and support your reputation. The grant or finance lowers the upfront cost of capturing these benefits, which is why a strong application frames the project around both environmental outcomes and a credible business case.
Match funding and combining sources
Many energy-efficiency grants require match funding, covering only part of a project’s cost. A grant can fund part, with a loan or government-backed finance covering the rest, subject to the rules and any subsidy limits. Planning the full funding package upfront makes ambitious decarbonisation projects affordable.
The funding routes at a glance
| Route | Best for |
|---|---|
| Green / net-zero grants | Part-funding efficiency and decarbonisation measures. |
| Asset finance | Equipment such as solar or efficient machinery. |
| Growth Guarantee Scheme | Larger projects with a government-backed loan. |
| Combined package | Grant plus finance for ambitious projects. |
How to apply
- Identify the energy-saving or decarbonisation measures you want to fund.
- Check national and regional grants via the business support finder and growth hub.
- Quantify the energy or carbon savings and the costs.
- Confirm any match funding and consider finance for the balance.
- Submit a credible application with supporting evidence such as quotes.
The bottom line
Government energy-efficiency funding helps established UK businesses fund insulation, lighting, heating, efficient equipment and renewables like solar — through green and net-zero grants and through finance where grants fall short. Grants usually require match funding and combine well with government-backed finance and asset finance, and the resulting energy savings can help fund the repayments. Quantify the savings, check national and regional schemes, and consider a combined package to cut both your bills and your carbon.
Frequently asked questions
What energy-efficiency funding is available for businesses?
Businesses can access green and net-zero grants for energy-efficiency and decarbonisation measures, and finance such as government-backed loans and asset finance to fund larger projects. Availability of specific grants varies by region and over time, so check current sources.
What measures can energy-efficiency funding cover?
Typical measures include insulation, efficient lighting, heating and controls, more efficient equipment, and renewable energy such as solar where supported. The eligible measures depend on the scheme and its objectives.
Are there grants for solar panels for businesses?
Some schemes support renewable energy or energy-efficiency measures for businesses, though availability and scope vary by region and over time. Check current local and national programmes, and consider combining a grant with finance for larger installations.
Can I use finance for energy-efficiency projects?
Yes. Government-backed finance such as the Growth Guarantee Scheme, and asset finance for equipment, can fund energy-efficiency projects — useful where grants cover only part of the cost or are unavailable. The energy savings can help fund the repayments.
Do energy-efficiency grants require match funding?
Often, yes. Many grants cover part of a project’s cost, with the business funding the rest, possibly with finance. Confirm the match requirement before applying.
Who is eligible for energy-efficiency funding?
Eligibility varies by scheme and may depend on your size, sector, location and project. Many schemes are open to established businesses investing in energy efficiency or decarbonisation. Check each scheme’s criteria.
What are the business benefits of energy efficiency?
Beyond any grant, energy-efficiency measures can cut running costs, improve resilience to volatile energy prices, help meet customer and supply-chain expectations, and support your reputation. The funding lowers the upfront cost of these gains.
Can I combine energy grants with finance?
Yes. A grant can cover part of an energy-efficiency project, with a loan or government-backed finance covering the rest, subject to the rules and any subsidy limits. This makes larger decarbonisation projects affordable.
How do I find energy-efficiency funding?
Check the government’s business support finder, your local growth hub, local authorities, devolved programmes and energy or sector bodies. Monitor both national and regional schemes, as local decarbonisation funding can be valuable.
Are energy-efficiency grants competitive?
They can be, as sustainability funding attracts demand. A well-matched application that quantifies the energy or carbon savings and costs, with a credible plan, stands the best chance.
Are energy-efficiency grants taxable?
The tax treatment depends on the grant’s nature and purpose. Confirm with your accountant, as it affects the net value.
How long do energy-efficiency grants take?
As with other grants, expect an application and assessment process, so plan ahead. Finance can be quicker if you need to proceed promptly.
Can a broker help fund a decarbonisation project?
Yes. A broker can arrange a loan, government-backed finance or asset finance for energy-efficiency and renewable projects, and help structure a package alongside any grant.
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