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Introduction
According to the Sustainability Pulse Survey for 2026 from HSBC, 98% of UK business leaders surveyed stated that they believe climate transition for their operations should be treated as a commercial opportunity. The survey has recorded trends for UK, European and Global businesses on environmentally sustainable transition goals.
It is the case that 90% of UK businesses surveyed plan to accelerate their environmental transition over the next 3 years and view the factors involved in becoming more environmentally sustainable as a growth catalyst. This is the highest figure in Europe, with the UK leading in transition plans and being followed by Germany (76%) and France (75%).
In terms of implementing a transition to renewable and clean energy sources, 57% of UK businesses have already taken this step into their operations, which is higher than the overall global average of 44%.
There are a number of barriers that were identified for European businesses, including the UK, looking to improve their environmental goals.
These are the main factors cited
- High Costs – 36%
- Budget Availability – 31%
- Lack of clear regulatory guidance – 26%
- Supply chain complexity – 26%
- Aggressive competitor landscape, transition risks losing ground – 26%
- Skills shortage for transition goals – 25%
- Availability of external financing options – 24%
- Lack of technology solutions
- Lack of financial and non-financial incentives – 22%
- Lack of internal commitment from senior stakeholders – 20%
- No clear customer benefits or no customer demand for transition – 16%
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 specific specialists.
What Are Some Of The Latest UK Business Energy Efficiency Funding Opportunities Available?
i) North East Supplier Readiness and Transformation (SRT) Scheme
North East Growth Hub and the Department for Business and Trade are running a scheme providing capital grants to help businesses in the automotive or electric vehicle (EV) supply chain pivot towards EV components, scale up operations, and adopt innovative technologies. Funding up to £3 million is available.
Application Deadline: Applications are invited on an ongoing basis
ii) Depot Charging Scheme
The Cabinet Office is running a scheme providing funding to fleet operators towards the costs of installing charging infrastructure for electric HGVs, vans and coaches at fleet depots. Funding up to £1 million is available.
Application Deadline: 30th June 2026
iii) Transforming Towns Place Making Grant 2022-27
Ceredigion County Council is providing capital funding for local businesses to support projects that can help to rejuvenate town centres across Mid-Wales. Eligible projects can include, but are not limited to, green infrastructure developments and improvements in town centres. Funding up to £300,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iv) Low Emission Retrofit Fund
Energy Saving Trust is providing funding to help micro firms who operate within Scotland’s four low emission zones, to retrofit their non-compliant vehicles with Clean Vehicle Retrofit Accreditation Scheme approved solutions. Grants of up to £5,000 are available for light commercial vehicles and wheelchair accessible taxis and grants of up to £16,000 are available for heavy goods vehicles or refuse collection vehicles.
Application Deadline: Applications are invited on an ongoing basis
v) Cornwall Climate and Nature Fund
Cornwall Council will support projects and activities that aim to help Cornwall tackle and respond to climate change and promote nature recovery. Businesses can access up to £5,000 although for exceptional projects that could offer a larger impact, the scheme may offer grants of up to £15,000. Eligible costs include installing clean energy technologies and energy efficiency and heating system improvements to reduce fossil fuel use in buildings that serve communities.
Application Deadline: Applications are invited on an ongoing basis
vi) Business Growth Grant – Enterprises Based in Commercial Premises –
Rhondda Cynon Taf County Borough Council is running a scheme that aims to support sustainable local business to set up, grow and diversify, contributing to creating a vibrant and strong local economy. The funding can be used for capital expenditure including equipment, plant or machinery and energy efficiency measures. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) Green Homes Grants
Blackburn with Darwen Borough Council is running a scheme providing funding towards the cost of energy-efficiency upgrades to households who are most likely to be impacted by the high cost of rising bills. Landlords are eligible to apply. Funding up to £10,000 is available.
Application Deadline: Applications are invited on an ongoing basis
viii) Material Focus Electricals Recycling Fund – Trialling New Methods
Material Focus is running a scheme inviting registered organisations including retailers to apply for funding to support projects that aim to trial new ways to make it easier to reuse and recycle electricals. Funding up to £5,000 is available.
Application Deadline: 31st May 2026
How To Apply For Business 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.