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Introduction
According to a 2026 survey from the British Chambers of Commerce, around 27% of UK businesses are struggling to pay their energy bills due to continued high energy costs. There are higher levels of difficulties in the manufacturing sector with 35% stating they are struggling with energy costs and 34% in consumer facing businesses (B2C), which are both utility intensive sectors.
Around 60% of production and manufacturing businesses are considering passing on any further energy cost increases as price hikes on their products, which is higher than the overall level for all businesses at 52%. Energy costs have remained an issue for UK businesses since 2022 when Russia invaded Ukraine and created a peak in energy prices. There are now concerns that energy costs could face hikes again with the current ongoing geopolitical instability in the Middle East.
In order to mitigate rising energy costs and help reach net zero goals, 64% of businesses surveyed have taken steps to improve energy efficiency, this includes upgrading to LED lighting, increasing insulation and reducing unnecessary energy consumption. Over a third (36%) of businesses have switched to a renewable energy supplier in order to reduce costs and just 7% of firms have adopted more advanced energy saving measures, such as using heat pumps.
A total of 43% of businesses have cited high upfront costs as the reason they have not invested more heavily into energy efficiency measures that could help reduce energy costs, with 34% stating they have a lack of access to finance and grants to help fund upgrades.
There are a number of Government backed fully funded energy audits available for businesses in the UK to help advise them on the best course of action to improve energy efficiency and reduce energy costs. Recommended energy efficiency improvements from these audits can then be partially or fully funded by grants and loans. Funding and energy audits are typically administered to businesses by providers in their local areas, such as local authorities, enterprise support hubs and sector specialists.
What Are Some Of The Latest UK Energy Efficiency Funding Opportunities Available?
i) SME Loan Scheme
Business Energy Scotland and Net Zero Scotland are running a fund that provides loans of up to £100,000 to SMEs looking to implement measures to reduce energy and resource costs. Eligible project costs include HVAC upgrades, air source heat pumps, improving insulation, double glazing, LED lighting, solar thermal systems, wind turbines and biomass boilers.
Application Deadline: Applications are invited on an ongoing basis
ii) Electric Vehicle Infrastructure Grant for Staff and Fleets
The UK Government is running a scheme that aims to help businesses install electric vehicle charge points for their operations and staff. Eligible costs can cover things like wiring and posts and the installation of sockets. The grant covers 75% of the cost of the work, up to a maximum of £15,000. Businesses can receive up to 5 grants across 5 different sites.
Application Deadline: 31st March 2026
iii) Business Decarbonisation Grant
Nottingham City Council is providing a grant to help businesses to reduce their energy related costs whilst also seeking to reduce the city’s carbon emissions. The funding can be used towards carbon reduction technologies, products and services, such as installation of LED lighting, energy efficient heating and cooling systems, insulation, solar panels and replacement of inefficient boilers. Funding up to £10,000 is available.
Application Deadline: 31st March 2026
iv) Energy Resilience Grant
Invest in West Lothian is running a scheme that aims to help businesses to overcome barriers in achieving emission reduction, implement new processes that evidence a clear link to emissions reductions and pivot into a new market within the net zero landscape. Funding up to £8,000 is available.
Application Deadline: 31st March 2026
v) Elmbridge Green Business Boost
Elmbridge Borough Council is running a scheme for businesses to apply for funding to support investment in energy saving products such as LED lighting, new energy efficient equipment or renewables to save money and reduce energy consumption. Funding up to £5,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Energising Small Business
Islington Council is providing financial support for works that will improve the energy efficiency of a business or minimise its carbon emissions. Eligible funding includes up to £1,500 for works such as upgrading your lighting to LEDs or upgrading equipment and up to £5,000 for replacing a gas boiler with a heat pump.
Application Deadline: Applications are invited on an ongoing basis
vii) Small Capital Grant
Scottish Enterprise is providing funding for SMEs that currently work with the organisation through their dedicated account management and specialist teams to access grants to cover capital investment costs that will help make their business more efficient and environmentally friendly. This grant offers between £15,000 and £100,000, and can fund up to 50% of the cost of new equipment.
Application Deadline: 30th April 2026
viii) Small Business Growth Grant
Wyre Council is running a scheme that will support business growth projects including, but not limited to, investment in plant, equipment or machinery, improvement or adaptation of business premises, training and marketing costs. Funding up to £5,000 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Energy Efficiency Funding Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested individuals and businesses can speak to advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.