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Introduction
According to a 2026 report titled From Crisis to Stability: A Future Energy System for Manufacturers from Make UK, high industrial energy costs could cost the UK up to £85bn per year in economic output from reduced manufacturing activity. Manufacturers have warned that unless urgent action is taken on continued high energy costs for the duration of 2026 and beyond, a number of factories could end up facing closure.
Around 90% of manufacturers have seen energy bills increase since 2022 and over 50% cite high energy costs as their biggest business challenge. 13% have warned that further price increases could threaten their viability and 70% of manufacturing firms are passing higher costs onto their customers.
As a result of ongoing high energy pressures, around 75% of manufacturers view renewable led power as the route to cheaper energy, 71% have pledged net zero as important to their operations and 87% would invest more money in decarbonisation activities if electric costs were reduced.
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, reduce energy usage and lower their carbon footprint. 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 councils, business enterprise support organisations and industry specialists. Eligible costs for grants and loans can include the purchase of green capital equipment, renewable energy options, access to clean transportation and energy efficient building materials and infrastructure.
What Are Some Of The Latest UK Energy Efficiency Funding Opportunities Available?
i) Carbon Reduction Grant
Swansea Council is running a scheme that will support projects involving low carbon energy generation, energy efficiency measures, or process improvements that lead to a reduction in carbon emissions. Funding up to £30,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) Workplace Travel Service
Nottinghamshire County Council is providing sustainable travel grants for businesses in the local area to add transport related improvements to their premises, such as showers, changing facilities, cycle parking and electric vehicle charging points. Funding up to £25,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iii) Atlantic Wharf Growth Fund
Cardiff City Council is running a fund to support businesses within the Butetown area to relaunch, develop, grow and maximise the opportunity provided by increased footfall, spend and visibility generated by the Atlantic Wharf redevelopment. The funding can be used towards capital expenditure, such as energy saving devices, including LED lighting and smart motion sensors. Funding up to £20,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iv) Pembrokeshire Carbon Reduction Grant
Pembrokeshire County Council is providing funding to businesses towards the purchase of renewable energy systems for their business premises. Power systems, heating systems, combined heat and power systems, Funding up to £35,000 is available.
Application Deadline: 29th January 2027
v) NEZ Business Growth Fund
Newhaven Enterprise Fund is running a scheme that aims to support projects that enable business growth or improvement and align with the strategic objectives of the Enterprise Zone, demonstrating clear impact, benefits and value for money. Eligible projects include the development of new or refurbishment of existing employment space, low carbon investments and capital projects. Funding up to £15,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Small Business Capital Grant
Argyll and Bute Council is running a scheme that aims to support a range of business development objectives including improvements in productivity, competitiveness, skills, growth, sustainability, resilience, profitability, innovation or net zero transition. Capital funding includes the purchase of energy efficiency improvements. Funding up to £10,000 is available.
Application Deadline: 28th February 2027
vii) Elmbridge Green Business Boost
Elmbridge Borough Council is running a scheme where businesses can 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
viii) 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 costs include replacing a gas boiler with a heat pump, or upgrading to LED lighting and other energy efficient equipment. 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.