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ECO Grants for your Business

Even though at the time of writing this article, there is not one specific type of ECO grant for your business, there is a range of different schemes available and other options for you to get funding for energy efficient improvements for your business. Many schemes the government has introduced over the years offer loans, grants, or subsidised energy-saving methods to support small businesses by mitigating their impact on the environment and lowering their energy bills. These will typically assist with:

  • Energy efficiency measures- including revising production processes or making improvements to the building your business operates in
  • The upfront expense of investing in energy efficient equipment
  • Waste management and reduction initiatives
  • Sustainable development projects

One option is to contact your local council and ask if they provide any energy efficiency funding or grants for sustainable business development. Usually, you will be required to submit a business case to apply. Certain initiatives might also qualify for business innovation funding. Currently, there are numerous location-specific opportunities for businesses to get funding through their local authority for eco measures. Some examples of these include:

  • Energy efficiency grants East Sussex- a small business could apply for a grant between £200 and £1,000 to cover a maximum of 40% of the total value of their energy efficient project.
  • Energy efficiency grants Manchester- if you have a small to medium-size business in Greater Manchester, you could qualify for an energy efficiency grant of between £1,000 and £12,500 from the GC Business Growth Hub, to provide support for up to 50% of the cost of your energy efficiency measures.
  • Green BELLE Leicestershire- the Green Business Energy in Leicester and Leicestershire offers eco grants for businesses of up to £10,000 to help SMEs in Leicester and Leicestershire fit low carbon measures and improve their energy efficiency. Grants of £1,000 to £10,000 are available to eligible businesses in these areas.
  • Low carbon Dorset- this scheme is a 5-year programme of activities designed to help promote growth in Dorset’s low carbon economy and reduce the county’s footprint.

What are some common types of energy efficient measures businesses can get?

Solar panel grants for businesses

Navigating solar panel grants for businesses can be a bit confusing with several schemes closing soon or having varying eligibility criteria. At the moment there aren’t any direct business grants for solar installation. However, businesses that opt to invest in solar panels for their building could take advantage of the Smart Export Guarantee (SEG). This was introduced in January 2020, and it allows people with solar panels generating their own electricity to receive payments for the extra energy that they export back to the grid.

These payments are aimed at small businesses that have a smart meter installed which ensures any exports to the grid can be metered. The SEG scheme is restricted to small businesses with a solar panel installation that is less than 50MW. This excludes particularly large solar panel installations, but for those who do qualify, having solar panels could lead to impressive savings and even earnings going forward.


Visit here for solar panel grants for your business


Heat pump grants for businesses

Whilst there are no specific heat pump grants for businesses right now, you might be able to reduce your tax bills through the government’s super-deduction of capital allowance. Also, if you regularly check the Ofgem website you may be able to find grants or schemes that can help cover the cost of installing a new heat pump in your business’ building as soon as one becomes available.

The government is proposing two new energy efficiency schemes from 2022 that are intended to replace the domestic and non-domestic renewable heat incentives. One of these schemes is the Clean Heat Grant which is an upfront capital grant for homes or businesses that integrate green heating technologies like heat pumps.

Despite having a fairly high upfront cost, heat pumps are proven to be around four or five times more efficient than gas boilers. Being able to lower the cost of your business’ energy bills is especially important now with the ongoing energy crisis in the UK and the consistent price increases that are resulting in many businesses struggling to keep up with escalating operational expenses.

The exact cost of installing a heat pump will depend on the type of building you are working from, how big of a unit you require, and how many you will need. Generally speaking, though, typical costs can range from about £6,000 to £18,000. Even without the assistance of a grant or subsidy, you can still see the value of having a heat pump installed as there are impressive benefits to doing so which can save you a significant amount of money in the long term.


Visit here for heat pump grants for your business


Insulation grants for businesses

As with the other types of energy efficient measures, there are not any specific insulation grants for businesses open currently. However, with some research, you might find other viable options for your business that can help you secure local funding or a loan to cover the cost of installing insulation in your building. The most common types of insulation that you could get through a local scheme or loan are cavity wall insulation and loft insulation.


Visit here for insulation grants for your business


Cavity wall insulation

It is important to note before you look into potential funding for cavity wall insulation in your building, not every property is suitable to have this form of insulation installed. Modern offices or other types of more recently constructed buildings might not have a cavity wall or meet the criteria required for you to have cavity wall insulation. However, there are several other types of insulation that may be right for your business’ building, so you can save money on your energy bills and make your operations more environmentally friendly.

Loft insulation

Having loft insulation installed in your building, if it is suitable, could make a key difference in not only the amount of money you could ultimately save long term but also in improving the level of heat retention and preventing heat from escaping out the roof. 

Final words

There will always be options available to businesses who are interested in lowering their carbon emissions, becoming more eco-friendly and energy efficient, and saving money on their bills, despite there not being any specific funding at this present time. 




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