Green and net-zero business grants are non-repayable funding to help UK businesses cut energy use and carbon emissions — funding energy-efficiency improvements, low-carbon equipment, renewables and decarbonisation projects. They’re offered through the business support finder, growth hubs, councils and devolved programmes, often require match funding, and can be combined with finance for larger projects. Beyond the grant, green investment can cut running costs and improve resilience.
Key takeaways
- Green grants fund energy efficiency, low-carbon equipment, renewables and decarbonisation.
- Sources include the business support finder, growth hubs, councils and devolved programmes.
- They often require match funding and can combine with loans or government-backed finance.
- Many are open to established businesses investing in sustainability.
- Green investment can cut running costs and improve energy-price resilience.
- Quantify the environmental outcomes to strengthen your application.
As the UK works toward net zero, a growing range of green and net-zero business grants help established businesses invest in sustainability — often cutting running costs at the same time. For a business facing rising energy bills or supply-chain expectations on carbon, these grants can lower the upfront cost of measures that pay back over time. This guide explains what green grants fund, where to find them, who qualifies, and how to apply.
What are green business grants?
Green business grants are non-repayable funding to help businesses become more sustainable — for example by improving energy efficiency, reducing carbon emissions, or adopting clean technology. They are offered by government, devolved administrations, local bodies and agencies, and target environmental outcomes such as lower energy use and reduced emissions. As with all grants, they come with conditions on how the funding is used.
What net-zero grants fund
Typical eligible measures include:
- Energy-efficiency improvements — insulation, lighting, heating and controls.
- Low-carbon equipment — more efficient machinery and processes.
- Renewable energy — measures such as solar, where supported.
- Decarbonisation projects — reducing a business’s overall carbon footprint.
The specific measures supported depend on the scheme and its objectives, and availability varies by region and over time.
Where to find green funding
Because schemes open and close and vary by region, knowing where to look is key. Good starting points include the government’s business support finder, your local growth hub, your local authority, devolved government programmes, and relevant sector or energy bodies. Monitor both national and regional listings, as local decarbonisation schemes can be valuable and less widely known.
Who is eligible?
Eligibility varies by scheme and may depend on your business size, sector, location and the specific project. Many sustainability schemes are open to established businesses investing in energy efficiency or decarbonisation. As always, check the specific criteria of each grant, and ensure your project genuinely delivers the environmental outcomes the scheme targets.
Match funding and combining with finance
Many green grants cover only part of a project’s cost, with the business contributing the rest as match funding. For larger projects — a significant renewable installation, for example — a grant can be combined with a loan or government-backed finance to cover the full cost, subject to the rules of each and any subsidy limits. Planning the full funding package upfront makes ambitious decarbonisation projects affordable.
For a bigger green project, a grant for part of the cost plus finance for the rest can turn an unaffordable upfront sum into a manageable one — while the energy savings help fund the repayments.
The business case beyond the grant
Green investment is not only about the grant. Energy-efficiency and decarbonisation measures can cut running costs, improve resilience to volatile energy prices, meet growing customer and supply-chain expectations on sustainability, and support your reputation. The grant 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.
How to apply
- Identify a scheme that fits your sustainability project.
- Read the eligibility and assessment criteria carefully.
- Quantify the environmental outcomes (energy or carbon savings) and the costs.
- Prepare a credible delivery plan with supporting evidence such as quotes or assessments.
- Confirm your match funding and submit before the deadline.
The bottom line
Green and net-zero business grants help UK businesses fund energy efficiency, low-carbon equipment, renewables and decarbonisation — lowering the upfront cost of measures that often cut running costs too. They’re available through the business support finder, growth hubs, councils and devolved programmes, frequently require match funding, and can be combined with finance for larger projects. Quantify the environmental outcomes, build a strong business case, and use your growth hub to find the schemes that fit.
Frequently asked questions
What are green business grants?
Green business grants are non-repayable funding to help businesses become more sustainable — for example by improving energy efficiency, reducing carbon emissions, or adopting clean technology. They are offered by government, devolved administrations, local bodies and agencies, and target environmental outcomes.
What do net-zero grants fund?
They typically fund measures that reduce a business’s carbon footprint — such as energy-efficiency improvements, low-carbon equipment, renewable energy, and decarbonisation projects. The specific eligible measures depend on the scheme and its objectives.
Where can I find green business grants?
Check the government’s business support finder, your local growth hub, local authorities, devolved government programmes, and sector or energy bodies. Availability changes over time, so monitor current listings and regional schemes.
Who is eligible for green grants?
Eligibility varies by scheme and may depend on your business size, sector, location and the project. Many schemes are open to established businesses investing in sustainability. Always check the specific criteria of each grant.
Do green grants require match funding?
Often, yes. Many sustainability grants cover part of a project’s cost, with the business funding the rest. Check whether match funding is required and that you can afford your share before applying.
Are there grants for solar panels or renewable energy?
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 how grants might combine with finance for larger installations.
Can green grants be combined with finance?
Often yes. A grant can cover part of a sustainability project, with a loan or government-backed finance covering the rest, subject to the rules of each and any subsidy limits. This can make larger decarbonisation projects affordable.
Are green grants competitive?
They can be, as sustainability funding attracts demand. Success depends on a well-matched, well-evidenced application that clearly delivers the environmental outcomes the scheme targets, with realistic figures and a credible plan.
Why are there grants for going green?
Government supports decarbonisation to meet net-zero goals and improve energy efficiency across the economy. Grants encourage businesses to invest in measures that reduce emissions and energy use, delivering both environmental and economic benefits.
What are the business benefits of green investment?
Beyond the grant, energy-efficiency and decarbonisation measures can cut running costs, improve resilience to energy prices, meet customer and supply-chain expectations, and support the business’s reputation. The grant lowers the upfront cost of these gains.
How do I apply for a green business grant?
Identify a scheme that fits your project, read the criteria, and prepare an application that quantifies the environmental outcomes and costs, with a credible delivery plan. Meet the deadline and provide supporting evidence such as quotes or assessments.
How long do green grants take?
As with other grants, expect an application and assessment process, sometimes in rounds, so they take longer than loans. Plan ahead and do not rely on a grant for an urgent need.
Are green grants taxable?
The tax treatment depends on the grant’s nature and purpose. Confirm with your accountant, as it affects the net value of the funding.
Can a growth hub help with green funding?
Yes. Growth hubs and equivalent bodies can signpost relevant sustainability grants and support, and offer free advice. They are a sensible first step before investing time in applications.
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