Skip to main content

Energy Efficiency Grants for Business

If you’re willing to make enquiries and browse around, you’ll find several grants available for your business with Business Energy Comparison. These grants are coming to the fore as the world moves towards greater environmental sustainability.

Business Energy Comparison Background - Blue
Green business

What Business Energy Grants and Schemes are Available?

Energy Bill Relief Scheme

The Energy Bill Relief scheme assists businesses with their energy costs and will continue until 31 March 2023. There is no need for companies to apply to the scheme, with any discounts due added to business energy bills automatically.

This scheme is designed for all non-domestic clientele and includes those on:-

Low Carbon Workspaces

Businesses under 250 employees can use the Low Carbon Workspaces grant. They must be located in Luton, Buckinghamshire, Hertfordshire, Bedfordshire, Berkshire, Milton Keynes or Northamptonshire. Grants range between £1,000 and £6,750 and include free advice from energy providers as well.

The way to apply for the Low Carbon Workspaces grant is to check your SME’s eligibility on the website and fill in the initial application form. One of the Low Carbon Workspaces team will then contact you to discuss your application and the grant in more detail.

After that, you’re encouraged to plan your project and submit your completed application form for review. You should send this along with the estimate from the selected energy supplier and the supporting utility bills.

You’ll receive a letter from Low Carbon Workspaces confirming your acceptance. With this grant offer, you can confirm the payment to your energy supplier and begin your project by sending in your claim form.

The cost of technology often provides barriers preventing sustained forward momentum of primary efficiency. Match-funded grants of up to £6,750 allow businesses to recover as much as a third of the cost of various energy-saving measures.

This reduces a lot of the time you’d generally wait to recover any investment and cut down the initial outlay.

Business Energy comparison

National Grid’s new scheme rewards businesses whose electricity bills reflect less electricity at specific times of the day. The initiative is called the Demand Flexibility Service.

You can only be eligible if your energy supplier is affiliated with the scheme, but this doesn’t give you automatic eligibility. If you qualify, your energy supplier will contact you and inform you how to sign up. They’ll also let you know the time frames when the events happen.

You can check whether your energy supplier is connected to the Demand Flexibility Service by checking the National Grid website.


Businesses with registered addresses in Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland, and Stockton-on-Tees in the Tees Valley region are eligible. They receive 100% funding on expert advice and audits for energy-efficient statistics to hone in on energy-saving methods. The scheme makes online workshops and other resources available to members.

Capital grants of between £10,000 and £100,000 cover as much as 45% of initial capital project expenses. This assists with work to cut down on greenhouse gas emissions and decrease energy consumption.

The European Regional Development Fund partly funds SMEES. The fund is managed by the Ministry of Housing, communities and the local authority.

Formed by the European Union, the European Regional Development Fund helps local areas develop economically. Their projects support businesses, job creation, innovation and the regeneration of local communities. Decerna’s technical specialists deliver SMEES.

Business Energy comparison
Design Elements

Energy for Business

Capital grants from £1,000 to £10,000 are available to SMEs in the Derby, Derbyshire, Leicester, Leicestershire, Nottingham and Nottinghamshire regions. This funding can make up 40% of a project costing £24,999 at most, provided the business has 249 employees or less.

Businesses in the regions can apply to access financial support funded through Energy for Business. The European Regional Development Fund funds the grants. The low-carbon innovation project offers:

  • Capital grants to encourage business growth
  • Access to first-rate expertise and facilities
  • Consultation with world-class academics
  • Workshops and events
  • Knowledge transfer partnerships and student placements

The University of Nottingham’s Energy Innovation and Collaboration team organises the Energy for Business scheme. Applicants will be notified of other related opportunities as they arise.

Low Carbon Dorset

The Low Carbon Dorset scheme offers free support to assist businesses in Bournemouth, Dorset and Poole to install energy-efficiency measures by reducing carbon emissions. Businesses should take part to assist in the development of low-carbon products for the commercial sector.

SMEs, public-sector institutions, legal community and voluntary organisations, and registered charities in Dorset can qualify as part of Low Carbon Dorset. The scheme cannot support agriculture or any activities related directly to primary processing.

By taking part in the scheme, businesses and organisations can receive several free services, which include:-

  • grants that contain a maximum of 40% of project costs starting at £5,000, with a £250,000 maximum cost.
  • technical advice for any low-carbon project initiatives.
  • detailed business energy surveys.
  • Events and workshops on low-carbon-related subjects.
  • opportunities to network.

The England European Regional Development Fund provides funding for Low Carbon Dorset. The 5-year Low Carbon Dorset programme is designed to assist the growth of Dorset’s low-carbon economy in reducing the county’s footprint. It is facilitated by the Dorset Council and the AONB (Area of Outstanding Natural Beauty) in the county.

Low Carbon Dorset aims to make businesses more energy efficient using renewable energy. The scheme will also assist in the development of new low-carbon derivatives. The local authority recently acquired further funding. It can now extend its commitment to offer advice on energy efficiency measures and green energy further than March 2023.

In 2023 the council intends to share more on how community groups and SMEs in the area can make use of this support. The local authority is attempting to find funding for future grants to accompany this technical advice.

Business Energy Comparison Background - Blue
Green carbon footprint

Business Energy Efficiency Programme

Small or medium-sized businesses registered in Herefordshire, Shropshire, Telford and Wrekin and Worcestershire can qualify for the West Midlands Business Energy Efficiency Programme.

The Herefordshire Council co-ordinates this set of energy efficiency grants & schemes, the Telford and Wrekin Council, the Worcestershire County Council, the Herefordshire and Worcestershire Chamber of Commerce and the Shropshire Chamber of Commerce.

The local authorities and Chambers of Commerce offer free efficiency assessments on energy use. These assessments could lead to grants for businesses that want further energy efficiency measures, like cavity wall insulation or loft insulation. The grants assist enterprises in positively impacting the environment, and reducing costs by applying energy-saving improvements.

The England European Regional Development Fund funds the Business Energy Efficiency Programme in the amount of £2,161,050. All SMEs with under 250 employees are encouraged to apply to be part of the scheme. The aim is to save energy and benefit from any future renewable technologies. SMEs must fall within the region for eligibility to qualify.

Coventry and Warwickshire Green Business Programme

The Coventry and Warwickshire Green Business Programme offer businesses 100% free audits, grants, and developmental low-carbon product support. SMEs with under 250 employees in Coventry, Leamington Spa, North Warwickshire, Nuneaton and Bedworth, Rugby, Stratford on Avon, and Warwick all qualify for certain benefits.

Non-profit organisations, charities, and businesses in the retail sector are not eligible for the scheme.

Qualifying businesses can access the following:-

  • energy grants for between £1,000 and £50,000, at a maximum of 40% of the cost of a project, to provide energy efficiency measures.
  • the Green Business Network.
  • an energy audit for free.
  • support and advice for energy-saving improvements and resource efficiency. Adopting low-carbon renewable technologies.

CUE Business Solutions, Coventry University and the Coventry City Council, run the Coventry and Warwickshire Green Business Programme. The local authority has announced an extension to the scheme until June 2023. Further funding of £1.25m for SMEs is available for energy efficiency upgrades.

Man with design element above her head stock image

DE-Carbonise Project

The DE-Carbonise Project provides support and grants for SMEs. These assist with reducing carbon emissions in the Derby and Derbyshire areas. The Derby City Council, the Derbyshire County Council, and the University of Derby run the scheme to raise awareness and assist in creating a more energy-efficient county.

Grants starting at £1,000 and going up to £20,000 are available to SMEs in the county to cover 40% of any energy-efficient project’s cost. The DE-Carbonise project aims to assist small and medium-sized businesses within Derby and Derbyshire to:-

  • save energy costs.
  • cut down carbon emissions.
  • formulate and implement lower-carbon business practices like low-carbon heating measures.
  • reach higher levels of sustainability.
  • gain greater education levels to become energy efficient through renewable energy advice.
  • use technologies related to renewable energy generation.
  • develop products with lower carbon.

The initiative by the local authorities and the university has assisted more than 500 businesses to date.

How Do Business Energy Grants Help?

Several national and local government schemes, and certain private ones, offer grants, loans, and subsidised measures to save energy. This helps SMEs to reduce negative environmental impact.

These grants help in multiple ways:-

  • They initiate further chances and methods of sustainable development.
  • They provide measures to encourage higher motivations to become more energy efficient as a business. An example of such is by suggesting greener production processes.
  • They provide upfront costs for investing in equipment designed to promote environmental efficiency.
  • They promote the management and reduction of waste within the business setting.

Lady with design element stock image

Who Provides Business Energy Grants?

There are numerous ways for SMEs to obtain grants from a variety of different avenues. The national government and local authorities can offer grants. These encourage businesses to become more energy efficient. Energy suppliers also offer schemes and grants to business customers. Often the National Grid and WRAP also incentivise through grants.

Charitable organisations and private business initiatives also assist with grants within their regions. Educational facilities like universities also provide local businesses with grant opportunities. Horizon Europe has also been integral in national funding for energy initiatives, although this will change at the end of 2022 due to BREXIT.

Eligibility Criteria

The eligibility criteria for business grants vary depending on the size of a business. Its location and the project the business has devised to save energy are also factors. Specific grants will only accept applications from businesses with fewer than a certain number of employees. Other funding options are only available within a county or stipulated towns within that county.

It makes sense to contact the grant administrator to obtain the eligibility criteria for any specific grant. You can also establish the application requirements required if your SME is eligible. Another idea is to contact your energy suppliers, who will have details of available grants and may have their own you’re eligible for.

Design Elements

In Closing

If you’re a small business owner, you’re aware of the rise in energy prices and how it affects your bottom line. Think seriously about looking at the available grants in your area. Applying for one may assist in cutting down your energy bill and provide your workplace with a way of becoming more environmentally friendly. Start your business electricity comparison and compare business gas prices with Business Energy Comaprison.