|
Getting your Trinity Audio player ready...
|
Introduction
According to a recent British Business Bank report titled SMEs and Net Zero, 63% of SMEs believe there is at least one benefit to taking steps towards net zero and reducing their carbon footprint. However, 83% of SMEs surveyed also currently have at least one barrier preventing them from progressing on net zero goals. The report carries a drill-down analysis on SME responses to the 2025 UK Net Zero Business Census carried out by the British Chambers of Commerce and PlanetMark.
In terms of the perceived benefits of working towards net zero goals, 38% of SMEs stated they wanted to actively be part of working towards tackling climate change. A further 31% believed that carbon reduction activities would bring them direct cost savings and 29% perceived the benefits of having a reputational advantage of being a company working towards net zero as a positive factor.
In terms of barriers preventing SMEs working towards net zero goals, 66% cited high costs as the main barrier, followed by 57% of businesses who stated they lacked access to finance or grants to make energy efficiency and carbon reduction savings. A further 52% stated that they lacked the actual time to look at implementing net zero goals as they had to focus on their primary business activity.
SMEs have stated they believe that Government support in the form of access to grants and funding would be the most positive intervention in terms of supporting their transition to net zero, with 41% making this comment. Despite the fact that SMEs state they want access to grants and funding and there being a number of options available, there is currently a surprisingly low uptake. Only 7% of SMEs have accessed grants and 2% have taken loans to support their net zero journey. The British Business Bank believes that the large gap between those seeking financial support and those actually accessing it is due to a lack of knowledge of what funding is actually available for SMEs.
There are currently a number of Government backed grants and loans available for businesses to make energy efficiency improvements in their business, including to purchase green capital equipment, explore renewable energy options, access clean transportation and energy efficient building materials and infrastructure. There is also access to local energy efficiency and industry specific specialists and audits for businesses to get advice on the most cost effective options to implement for benefits to their operations to work towards net zero. Local councils, business enterprise support organisations and industry specialists can all provide access to funding options and business energy efficiency support.
What Are Some Of The Latest UK Energy Efficiency Funding Opportunities Available?
i) Green Business Grants
Winchester City Council is offering a grant to help businesses reduce their carbon footprint and running costs. The grant can be used for capital expenditure as well as scoping studies/design work to enable capital investment, pilots, innovation and behaviour change campaigns for staff. Funding up to £5,000 is available.
Application Deadline: 28th November 2025
ii) Growing Places Fund – Business Growth Capital Investment Programme
Hull and East Yorkshire Business Growth Skills Hub is providing grants to support businesses to invest in infrastructure, technology, and other capital projects that will stimulate growth and create jobs and seek to implement energy efficiency, waste reduction and EV charge point infrastructure. Funding up to £250,000 is available.
Application Deadline: 31st March 2026
iii) Business Growth Fund
North Lanarkshire Council is running a scheme providing funding to businesses to support projects which will support the strategic, long-term sustainability and growth of their business. Eligible projects can include capital expenditure and infrastructure improvement that result in renewable energy improvements and carbon reduction activities. Funding up to £20,000 is available.
Application Deadline: 12th November 2025
iv) Tourism Development Grant
Blaenau Gwent County Borough Council is running a scheme that aims to support the growth and development of new and existing businesses in the hospitality and tourism sectors. Projects should support at least one of the themes, which includes green energy and decarbonisation activities. Capital costs can include green energy equipment and vehicles and the upgrade of existing lighting and heating systems. Funding up to £50,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Net Zero Newport Decarbonisation Programme
Newport City Council is running a UK Shared Prosperity Fund backed scheme that aims to help businesses in the local area to establish baseline carbon emissions, implement emission reduction plans and fund projects aligned with sustainability objectives. Eligible costs include funding for contractors and consultants procured to undertake reasonable project activities, equipment and machinery related to installing energy efficiency and renewable energy technologies and costs related to installation, commissioning, and associated works. Funding up to £30,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Resilient Stafford Grant
Stafford Borough Council is running a UK Shared Prosperity Fund backed scheme that aims to support businesses to become more sustainable by implementing energy efficiency saving measures, such as energy-efficient lighting, electric kitchens and equipment, heating upgrades, solar panels and insulation enhancements. Funding up to £30,000 is available.
Application Deadline: 30th November 2025
vii) Green Recovery Capital Development Grant
Perth and Kinross Council has a scheme providing businesses with funding towards capital projects to reduce their carbon footprint and that lead to a low carbon future. Eligible capital costs can be towards helping implement new systems, new ways of working, new machinery, and investment in green technology. Funding up to £25,000 is available.
Application Deadline: Applications are invited on an ongoing business
viii) Net Zero Barnsley
Enterprising Barnsley is running the Net Zero Barnsley accelerator programme backed by the UK Shared Prosperity Fund and is providing specialist sustainability coaching to help businesses to define and measure their existing CO2 outputs and draw up detailed plans to reduce emissions. On completion of their decarbonisation plans, businesses can access funding to invest in new green technology or practices. Funding up to £10,000 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Energy Efficiency 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 funding 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.
Want To Find The Latest UK Energy Efficiency Funding Opportunities?
If you want to see the full set of UK energy efficiency funding currently available, please visit https://getbusinessgrants.com/