Financial support for businesses
Support with energy bills
Energy Bills Discount Scheme (EBDS)
The Energy Bills Discount Scheme (EBDS) for non-domestic customers limits the amount you can be charged per unit of gas or electricity. It will run for 12 months from April 1st 2023 to March 31st 2024.
Grants and loans
Recovery Loan Scheme
The Recovery Loan Scheme supports small and medium sized businesses to access the finance they need to grow and invest. Finance can be used for any legitimate business purpose, including investing in energy efficiency projects.
Industrial Energy Transformation Fund
Grants are available to fund projects to reduce industrial energy consumption and achieve industrial emissions savings as well as feasibility studies before making an investment decision. Applications are open until 19 April 2024 to businesses of any size across England, Wales and Northern Ireland. Find out how to apply on GOV.UK.
Capital allowances allow businesses to write-off their costs of qualifying capital investments against their taxable profits over time. The extent and rate of write-off can impact business investment decisions.
Capital allowances for plant and machinery costs
Companies can write off costs of qualifying plant and machinery investments against their taxable profits over time through the Annual Investment Allowance.
Two further temporary capital allowances also exist up to 1 April 2023. Companies can claim the super-deduction for the costs of plant or machinery investments and the special rate first-year allowance for qualifying expenditure on special rate (including long life) plant and machinery. Find out more including what type of plant and machinery might qualify on GOV.UK.
Structures and buildings allowance
This allowance is available for qualifying expenditure on the construction of or renovation of non-residential structures and buildings at 3% per annum over 33 1/3 years. Find out more about the allowance on GOV.UK.
Business rates support for green technology
Business rates are exempt for eligible plant and machinery used in onsite renewable energy generation and storage until 31 March 2035. This includes rooftop solar panels, wind turbines, and battery storage and onsite storage used with electric vehicle charging points. A 100% relief for eligible low-carbon heat networks which have their own rates bill is also available until 2035. Read the GOV.UK factsheet on business rates.
The Government’s Help to Grow website contains news, advice and links to support for anyone starting or growing their business.
Some business support is devolved. Get advice through
- Business Energy Scotland – SMEs in Scotland can contact the Scottish Government-funded Business Energy Scotland advice service for free impartial support and access to funding, including the Scottish Government’s SME Loan and Grant Scheme, to help businesses save energy, money and carbon.
- Business Wales – provides a range of resources on reducing energy usage including guides on energy management, heating and lighting and fact sheets for particular sectors. Explore the website for additional resources such as blog posts on energy, guidance and access to specialist advice on resource efficiency.
- Invest Northern Ireland – offers a free Energy and Resource Consultancy for Northern Ireland businesses. This support offers fully funded technical audits, feasibility studies, and advice, complete with a report and recommendations to help businesses identify cost and carbon savings through energy and resource efficiency.
- Regional advice and support in England is available through Growth Hubs
British Business Bank Finance Hub provides advice and learning resources for UK businesses.
Carbon Trust SME guide to financing energy efficiency projects explains the pros and cons of financing mechanisms and how to build a business case for investing in energy efficiency measures.
Zero Carbon Business has a list of financial support and funding available across the UK for businesses looking to increase their energy efficiency.