Insights / Decarbonisation: Grants, subsidies & incentives

Decarbonisation: What grants, subsidies and incentives are available to UK businesses?

Making the decision to decarbonise your business is a big step, but you don’t have to take it on your own. There are many places you can find the financial support you need. In fact, you could benefit from hundreds of sources of support.

Decarbonisation: What grants, subsidies and incentives are available to UK businesses? - Hero

Government schemes

There are a number of government schemes available that offer loans, grants and subsidies to businesses that want to reduce their impact on the environment. These normally help support:

  • Improvements in energy efficiency
  • Meeting the initial costs of energy-efficiency equipment
  • Sustainable development initiatives.

You can find out more about these schemes at the GOV.UK business finance and support finder.

The government’s also introduced two new energy efficiency schemes to replace the previous domestic and non-domestic renewable heat incentives:

The Boiler Upgrade Scheme – introduced on 1 April 2022. This helps with upfront funding for businesses and households that integrate green heating technologies.

Green Gas Support Scheme - which opened in November 2021. This provides funding to support biomethane injection to raise the amount of green gas in the grid.

You can find the latest details of these proposals along with other environmental and social schemes on the Ofgem website.

Business innovation funding

Your project may be eligible for innovation funding through Innovate UK.

Smart export guarantee

And if you’re generating your own renewable heat or power, you could qualify for payments through the Smart Export Guarantee.

You can find details of all the latest government schemes to help businesses in their transition to green energy or to reduce carbon emissions on their website.

Support in your country or area

As well as support for business across the UK, there are dozens of schemes that cover the individual countries. Others support projects in specific areas. You could qualify for support ranging from grants of up to £6,000 for businesses to install heat pumps in England and Wales to interest-free loans of up to £20,000 to buy used electric vehicles (EVs) in Scotland.

You can find out more about all of these initiatives on the Zero Carbon Business website.

Local government schemes

It’s not only the UK and individual national governments that offer support. If you contact your local council, you may find that they also offer funding to help improve your energy efficiency. They may also offer specific business support grants for initiatives that help reduce carbon emissions.

Other grants

Of course, there are also many other grants available from other sources too. You can search online for details of all grants.

Support from your energy supplier

Your energy supplier may provide incentives or grants to help you improve your business’s energy efficiency. Drax customers have access to partnerships that provide discounts and support for low carbon initiatives. You should contact your energy supplier direct to see if and how they can help you.

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