Are there grants for business energy efficiency?

The honest answer

There is no across-the-board national grant for energy efficiency that we could verify for ordinary small businesses in England, Scotland, Wales and Northern Ireland. The main national exception is for heating (below). Other programmes come and go, often run by councils, combined authorities, devolved governments or sector bodies, and many are small, competitive or time-limited. Treat any claim of "free" upgrades with care.

The one national scheme worth checking: heat pumps

The government's Boiler Upgrade Scheme gives £7,500 off an air source or ground source heat pump. According to the government grants finder, small and medium non-domestic buildings in England or Wales can qualify, installations are capped at 45 kWth, an MCS-certified installer applies for you, and the scheme is listed as closing on 30 December 2029. It does not cover Scotland or Northern Ireland, which have their own support bodies. Check eligibility with the installer before you sign anything.

Where else to look

• Your local council or economic development team. They often run small local pots.
• Devolved governments. Scotland, Wales and Northern Ireland have their own business support bodies.
• Trade bodies. Farming, hospitality and manufacturing groups often know what exists.
• Your accountant. Capital allowances can let you deduct the cost of some equipment against profits. The rules and limits change, so ask them what applies now.
• Finance. Equipment loans and leases are ordinary commercial products, not grants; compare the total cost.

Our guide to efficiency grants and loans goes deeper.

Judge any offer by payback

Whether it is grant-funded or not, check the sums. Payback = net cost ÷ yearly saving.

Worked example: heating controls cost £2,400. A grant covers £600, so net cost is £1,800. They cut gas use by 15,000 kWh a year. At the DESNZ Q2 2026 non-domestic average gas price of 5.28p/kWh, the saving is 15,000 × £0.0528 = £792 a year. Payback is £1,800 ÷ £792 = about 2.3 years. Without the grant it would be £2,400 ÷ £792 = about 3.0 years.

Efficiency work does not need a grant

No-cost steps come first: switch off, fix timers, check overnight use. Then LED lighting, heating and monitoring. A business energy audit can rank the options.

If you rent

You usually need your landlord's consent for fabric changes. Landlords have their own reason to improve, because privately let commercial property generally needs at least an E rating; see EPC rules.

Beware callers who say you are "eligible for a government energy grant" and ask for bank details or a letter of authority. Check the scheme on a .gov.uk page first.

How to make a funding search efficient

Keep a short project summary ready: what you want to do, estimated cost, expected kWh saving and your premises status (owned or rented). Many funders ask for exactly that, and it lets you compare offers fairly. Note any condition that forces you to use a named installer or a particular product, as this can add cost that cancels out the grant. Finally, check whether work has to wait for approval, because starting before sign-off can make you ineligible.

Next steps

1. Ask your council what business support is live today.
2. Get two quotes and work out payback with and without any grant.
3. Read about wider government help.

Biz Energy is independent and not affiliated with any supplier, broker or comparison site, and takes no commission. This is general information, not legal, tax or financial advice.