Energy efficiency grants for business

Government support for business energy efficiency is spread across several different schemes rather than one central grant, and it changes often. This guide sets out what was genuinely open in September 2026, sourced from GOV.UK, Ofgem and the relevant devolved government or delivery body, and flags where a scheme has since closed or paused so you don’t waste time on outdated information. Because budgets and deadlines move, always check the scheme’s own page before you plan around it.

What government support is there for business energy efficiency?

Support falls into three broad types: capital grants towards specific technologies, tax reliefs that reduce what you pay through your tax bill, and low-cost loans, and it is split between UK-wide and nation-specific schemes. There is no single application that covers everything, so most businesses end up combining more than one.

Ofgem publishes a grant finder aimed at businesses, and GOV.UK’s Energy Efficiency for Businesses campaign site lists financial support in one place. Both are useful starting points, but check the detail on the scheme’s own page, since summary pages can lag behind changes.

A rough map of what’s covered where:

Type of support	Examples	Nation
Capital grant for a specific technology	Boiler Upgrade Scheme, Green Heat Network Fund	England and Wales
Tax relief	Annual Investment Allowance, 40% first-year allowance, business rates exemption	UK-wide (business rates exemption is England-specific)
Low-cost or interest-free loan	Scottish SME Loan Scheme, Development Bank of Wales Green Business Loan Scheme	Scotland; Wales
Network-funded efficiency programme	Northern Ireland Sustainable Energy Programme	Northern Ireland
Local grant	Varies by council or combined authority	England, and some devolved areas

The rest of this guide goes through each row in turn.

Can you get a grant for a heat pump or biomass boiler?

Yes. The Boiler Upgrade Scheme (BUS) gives eligible small and medium non-domestic buildings in England and Wales £7,500 off an air source or ground source heat pump, or £5,000 off a biomass boiler, paid to your installer. The building must have a valid EPC, be replacing an existing fossil fuel or certain electric heating systems, and the new system must not exceed 45kWth (300kWth for a shared ground loop). Our heat pumps for business guide covers the full eligibility rules, running costs and planning permission you’ll need to check.

Is there a grant for a heat network or larger renewable heat project?

Yes, for larger schemes. The Green Heat Network Fund (GHNF) is a capital grant that supports the construction of new low-carbon heat networks and the retrofit of existing ones in England and Wales. Public, private and third sector organisations can apply; individuals, households and sole traders cannot. It is run in competitive rounds through Triple Point Heat Networks Investment Management. Round 12 was open until 11.59pm on 25 September 2026, with earlier rounds having closed through 2025 and 2026, so a new round should be expected to follow. This fund suits organisations planning a heat network or supplying heat to multiple buildings, rather than a single small business premises.

What tax relief is available for energy efficiency equipment?

The main routes are the Annual Investment Allowance, a new first-year allowance introduced from 1 January 2026, and, in England, an exemption from business rates for eligible green plant and machinery.

• Annual Investment Allowance (AIA): lets a business deduct the cost of most plant and machinery, including many energy efficiency and renewable energy assets, from taxable profits in the year of purchase, up to £1 million a year.
• 40% first-year allowance: from 1 January 2026, unincorporated businesses that don’t benefit from full expensing can claim a new 40% first-year allowance on qualifying main-rate plant and machinery, on top of the existing full expensing offer for companies. The standard writing-down allowance rate fell from 18% to 14% from April 2026 to help fund this.
• Business rates exemption: in England, eligible plant and machinery used for on-site renewable generation and storage, including solar panels, heat pumps, wind turbines and battery storage, is exempt from business rates until 31 March 2035. If your premises are in Scotland, Wales or Northern Ireland, check the position with your local authority, since rates are set separately there.

How each of these applies to your business depends on your structure, other capital spending and how the asset is used, so check the detail with your accountant, particularly where a grant and a capital allowance might both apply to the same purchase.

What about the Energy Technology List?

GOV.UK’s Energy Technology List (ETL) is a government-backed list of over 8,000 independently verified, energy-efficient products across 62 technology categories, from boilers to motors, that’s still maintained and updated monthly. It’s worth checking as a way of comparing equipment on efficiency, but it no longer carries an automatic tax benefit: the Enhanced Capital Allowance scheme, which used to give a 100% first-year allowance on ETL-listed equipment, ended for purchases from April 2020. Equipment on the list is now treated for capital allowances the same as any other qualifying plant and machinery, through the Annual Investment Allowance or the wider capital allowances rules above.

A scheme that has closed: the Industrial Energy Transformation Fund

The Industrial Energy Transformation Fund (IETF) supported large energy users with grants towards energy efficiency and decarbonisation projects. The government confirmed it would not extend the fund further and that a planned further Phase 3 competition window would not take place, so it is closed to new applications. Projects already approved in earlier phases continue to be funded through to completion. If you see it listed elsewhere as currently open, that information is out of date.

What support is available in Scotland?

Scottish businesses can apply for the SME Loan Scheme, delivered by Energy Saving Trust as Business Energy Scotland on behalf of the Scottish Government. It offers interest-free loans of up to £100,000 for energy efficiency improvements such as insulation, heating and double glazing, and can also support installing renewable technologies. Apply and check current terms and eligibility through the Business Energy Scotland website.

What support is available in Wales?

The Development Bank of Wales runs the Green Business Loan Scheme, backed by the Welsh Government, offering discounted-rate loans from £1,000 to £1.5 million for decarbonisation projects. Eligible projects include heating, ventilation and air conditioning replacement, building insulation, LED lighting, solar PV, heat pumps and other equipment upgrades. Applicants need to be a limited company, sole trader or partnership based in Wales, trading for at least two years with filed accounts. The scheme was open for applications as of September 2026; check the Development Bank of Wales site for current terms.

What support is available in Northern Ireland?

Support in Northern Ireland is more mixed, so check status carefully before you plan around any one scheme.

• Energy Efficiency Capital Grant (Invest NI): was paused after its first year of operation while Invest NI reviews its performance. It is not accepting new enquiries or applications, with no confirmed reopening date.
• Resource Efficiency Capital Grant (Invest NI): available to Invest NI client companies towards new equipment, but new applications were not being issued after 27 March 2026.
• Northern Ireland Sustainable Energy Programme (NISEP): an ongoing energy efficiency programme funded through electricity and gas networks and overseen by the Utility Regulator, covering both domestic and non-domestic customers. Some non-domestic measures are available, delivered through several regional scheme managers, but demand is high and some individual schemes run waiting lists. Contact the Utility Regulator or Northern Ireland Energy Advice for the current list of schemes and managers.

If you run a business in Northern Ireland, it’s worth checking directly with Invest NI and the Utility Regulator rather than relying on older articles, since two of the three main schemes above have changed status within the last couple of years.

Are there local council grants for businesses in England?

Many councils and combined authorities run their own energy efficiency or decarbonisation grants for local businesses, but coverage is patchy and changes frequently, so there is no reliable single list. These are often funded through wider regional growth funding rather than a national energy scheme. To find out what applies to you:

1. Check your local council’s business support or economic development web pages.
2. Search GOV.UK’s business finance and support finder for schemes in your postcode.
3. Ask your local growth hub or chamber of commerce, if your area has one.

Because these schemes can close at short notice or have small budgets that run out quickly, treat any local scheme you find as time-sensitive and confirm directly with the council before spending time on an application.

How do you check a grant before applying?

1. Go to the primary source. Confirm current eligibility, amounts and deadlines on GOV.UK, the relevant devolved government site, Ofgem, or the delivery body named on the scheme, not on a broker or installer’s summary page.
2. Check the closing date. Grant rounds close and reopen; a scheme’s overview page may not reflect the current round.
3. Check who can apply. Some grants are restricted by business size, sector, location or whether you own or lease the property.
4. Be wary of pressure to sign quickly. Genuine schemes publish their own deadlines. Treat urgency from a salesperson, rather than the scheme’s own page, with caution.
5. Ask what’s excluded. Grant terms often exclude VAT, exclude certain technologies, or cap the grant as a percentage of cost.
6. Combine with tax relief where you can. A capital grant and a capital allowance can sometimes both apply to the same project; check with your accountant how they interact.
7. Keep records. Applications and audits often ask for meter readings, invoices and photos of the existing equipment being replaced, so gather these before you start rather than scrambling once a portal opens.

Should you get an energy audit before applying for a grant?

It helps. Most grants are aimed at a specific technology, such as a heat pump or insulation, rather than at whatever you think might help. A structured business energy audit identifies where your energy actually goes and which measures would make the biggest difference, so you can target grant applications and capital spending at the right thing rather than the first option a salesperson suggests.

Grants and tax reliefs reduce the cost of new equipment, but your ongoing energy bill still depends on your contract. Our guide to reducing business energy costs covers the no-cost and low-cost changes to make first, and once your usage is under control, compare business energy quotes to make sure you’re paying a fair rate for what you still use.

Frequently asked questions