Business energy efficiency grants and loans: where to look and what to ask

What to expect

Funding for energy efficiency changes often. Some schemes are national, some are run by the Scottish, Welsh and Northern Irish governments or by local councils and combined authorities, and many close when the money runs out. We therefore will not promise a particular scheme exists today. Instead, this page shows you how to find what is live, how to avoid scams, and how to work out whether a project pays back without any grant at all.

Important: this is different from help with bills. There is no general bill-support scheme in 2026; see government help with business energy bills.

Where to search

1. GOV.UK's grants service. The Cabinet Office "Find government grants" service lets you filter by your needs and check eligibility. It covers small and medium-sized businesses as well as voluntary organisations. The guidance page itself does not single out energy efficiency, so you search inside the service.
2. The GOV.UK business finance and support finder for loans and government-backed finance.
3. Devolved and local bodies. Scotland, Wales and Northern Ireland each have their own business support agencies, and councils sometimes run local funds. Search your nation's business support service for "energy efficiency".
4. Your landlord, supplier or utility. Some contracts include metering or monitoring upgrades and some landlords fund improvements for a service-charge recovery. Ask before assuming you must pay.

Tip: Start with a free or low-cost energy audit to know where energy goes. See our guide to a business energy audit.

Questions to ask about any scheme

• Who runs it and is it on an official .gov.uk or council site?
• Do I need to apply before buying equipment? (Many schemes refuse retrospective claims.)
• Is it a grant (free), a loan (repayable) or a cash-back?
• What minimum energy saving or approved supplier list applies?
• Does it count as state aid or reduce my other tax relief?
• Do I rent? If so, will my landlord's consent be needed?

Other ways to reduce the cost of upgrades

Tax rules can reduce the cost of equipment bought by a business, such as capital allowances for plant and machinery. These depend on your business structure and how the equipment is classed, so ask an accountant rather than relying on general guidance. Income from generating your own power can also help; see the Smart Export Guarantee for business and commercial solar panels.

Worked example: does an upgrade pay back without a grant?

Suppose a shop replaces 40 older fluorescent fittings of 58W with LED fittings of 22W, and the lights run 3,000 hours a year. These numbers are illustrative.

• Saving per fitting: 58W − 22W = 36W
• Total saving: 36W × 40 = 1,440W = 1.44kW
• Energy saved: 1.44kW × 3,000 hours = 4,320 kWh a year
• At an assumed 25p/kWh: 4,320 × 0.25 = £1,080 a year
• If the job costs £1,500: payback = £1,500 ÷ £1,080 = about 1.4 years

The 25p figure is deliberately close to the DESNZ average for non-domestic electricity of 24.51p/kWh in Q2 2026 (which includes the Climate Change Levy). Use your own rate from your bill. If a grant covered a third of the cost, the payback would drop to about 0.9 years (£1,000 ÷ £1,080). The point: a quick payback means the project is worth doing even if you miss the grant. See LED lighting for business and are LED lights worth it.

Worked example: a loan versus paying cash

Many schemes offer a loan rather than free money, so test whether the saving covers the repayments. Take the LED project above (£1,500 cost, £1,080 a year saved) and suppose, purely for illustration, a lender offers the £1,500 over two years with £100 of total interest and fees.

• Total repaid: £1,500 + £100 = £1,600
• Repayment per year: £1,600 ÷ 2 = £800
• Saving per year: £1,080, so you are ahead by £1,080 − £800 = £280 a year while repaying
• After two years, the full £1,080 a year is yours

If the yearly repayment were higher than the yearly saving, the project would cost you cash until the loan ended, which matters if money is tight. Use the actual rate, fees and term in the loan offer, not these figures.

Get your paperwork ready before you apply

Schemes that do exist usually want the same evidence, and having it ready means you can apply before a fund closes. Prepare:

1. Twelve months of bills for each meter, showing kWh used and your unit rate.
2. Your meter numbers (MPAN for electricity, MPRN for gas) and the premises address.
3. At least two written quotes for the work, each with the equipment specification and installed cost.
4. An estimate of the saving in kWh and pounds, showing the sum, as in the worked examples on this page.
5. Landlord consent in writing if you rent, and any listed-building or planning checks for external work.
6. Company details: Companies House number or sole trader details, and your staff numbers and turnover, because many schemes are limited to small firms.

Check the saving afterwards

Take a meter reading on the day the work finishes, then compare the same months a year later. Adjust for changes in opening hours or equipment, otherwise you may credit or blame the upgrade for something else. If the saving is well below what an installer promised, raise it with them in writing.

Bigger projects

For heating, solar, batteries or EV charging, the payback is longer and the paperwork heavier. Read:

• business heating efficiency
• commercial solar panels, including batteries
• workplace EV charging

If you rent, also check the minimum energy efficiency rules for commercial buildings: commercial EPCs and MEES.

Avoiding scams and bad deals

Be wary of cold calls promising "free" panels or heat pumps, or of anyone asking you to sign a letter of authority. Real grant schemes publish their eligibility rules and do not need you to pay a fee upfront. Check the company's reputation and get more than one quote.

Next steps

• Check your bill for your actual rate and usage, then rank where energy is going.
• Work out payback for each idea using your own figures.
• Search GOV.UK's grants service and your nation's business support service before you buy.
• Use the business energy cost calculator to see the impact of savings.