A wide range of grants, loans, incentives, and investment programmes are available across the UK to support decarbonisation, energy efficiency, clean tech adoption, and sustainable growth.
Below is a breakdown of the main categories, with often a combination of these being appropriate to achieve your goals.
1. Government Grants & Public Sector Funding
UK Wide Grants
- Find a Grant (UK Government): A continually updated portal offering grants to help businesses cut carbon and improve energy efficiency.
- Industrial Energy Transformation Fund (IETF): Supports energy intensive businesses with energy efficiency upgrades and low carbon technologies.
Devolved Nation Grants
- Scotland – SME Loan Scheme: Interest free loans up to £100k with up to £30k cashback for carbon saving upgrades.
- Wales – Green Business Loan Scheme: Flexible loans with discounted rates via the Development Bank of Wales.
- Northern Ireland – Sustainable Energy Programme: Grants and support through the Energy Saving Trust.
Innovation & R&D Funding
- Innovate UK: Funds clean energy innovation, low carbon technologies, and net zero R&D (e.g., Net Zero Living, Energy Catalyst).
- Horizon Europe & EU Net Zero Calls (for eligible UK organisations): Funding for deep tech and climate innovation.
Green Loans from Banks & Financial Institutions
Many financial institutions now offer preferential loans specifically for sustainable projects, including:
- Reduced interest rates on asset finance when purchasing Electric Vehicles
- Reduced interest rates on asset finance when purchasing machinery & equipment that will reduce the carbon footprint of the business
- Term loans with reduced margins or zero arrangement fees for property purchases where EPC rating is A or B (dependent on the lender)
- Term loans with reduced margins or zero arrangement fees for property improvements which improve the EPC rating of the property
These are ideal for projects like solar PV, EV fleet transition, heat pumps, insulation, LED upgrades, and more.
Specialist Green Funds & Incentives
Plug In Vehicle & Van Grants
- Subsidises the cost of electric vehicles for SMEs, applied directly at the dealer.
SSE Community Funds
- Supports community led sustainability projects across the UK.
Local Authority Incentives
- Councils often provide grants for insulation, heat pumps, energy audits, and retrofits, via regional programmes (varies by region).
Investment & Co Investment Programmes
Net Zero Investment Initiatives
- Innovate UK Growth Catalyst: Combines grant funding (£900k–£2m) with private investment for late stage clean tech and sustainable innovation.
Financing Net Zero Programme (Innovate UK)
- Helps businesses become “investment ready,” offering support on capital raising for climate technologies.
Contracts Finder & Find a Tender
- Lists public sector contracts aligned with sustainability and net zero objectives providing potential long term revenue streams.
Tax Reliefs & Capital Incentives
Businesses can also leverage UK tax incentives to support green investment:
- Annual Investment Allowance (AIA) – Allows deduction of qualifying energy efficient equipment.
- Structures & Buildings Allowance (SBA) – Helps offset improvements to low carbon premises.
Navigating green funding can be complex but when structured correctly, it can materially reduce the cost of transition while strengthening long-term competitiveness.
If you are considering decarbonisation, energy upgrades, or sustainable expansion, it may be worth reviewing what support is available to you.
We would welcome a confidential discussion to explore which grants, funding lines, or incentives may align with your plans.
