Financial support for businesses
The government is helping businesses with financial support for energy bills, financing schemes and tax incentives for energy efficiency investments.
As well as following our energy advice for businesses, review the schemes below to explore how they could help your business. Government financial support can help with energy efficiency investments that can lower costs for your business for years to come.
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 21st 2024.
Enhanced support for Energy and Trade Intensive Industries
From April 26, non-domestic customers that operate in energy and trade intensive industries (ETII) will be able to apply for additional support through the new Energy Bills Discount Scheme portal.
Eligible organisations will have 90 days from the scheme introduction date of 26 April to apply. New organisations and newly eligible organisations will have 90 days to apply from the date at which they become eligible.
Find out more about eligibility and apply on GOV.UK
Non-Domestic Alternative Fuel Payment
If your business is not connected to the gas grid and uses alternative fuel, support is available towards energy bills through the Non-Domestic Alternative Fuel Payment. You can apply for £150 fixed payment for alternative fuel use or the high users of heating oil (kerosene) support with payments between £750 and £5800 available.
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.
Business Energy Scotland
Scottish small and medium sized businesses, not-for-profits and charities can access interest-free loans up to £100,000 to install energy efficient systems, equipment or building fabric. SMEs installing eligible equipment can also receive cashback grants of up to £30,000. More information is available on the Business Energy Scotland website.
Capital allowances
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.
Tax incentives
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.
More information
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
- Business Wales
- Invest Northern Ireland
- 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.