Energy Saving Doors
Grants and Funding
There are several government grants, schemes, and incentives designed to encourage businesses to install energy-saving devices and improve energy efficiency. These programs help reduce operational costs, decrease environmental impact, and support the UK’s goal of reaching net-zero emissions. Below are some of the financial grants and assistance programs available - and this is the structured approach that we would recommend to secure your funding.
• What it is: A mandatory energy assessment scheme for large organizations in the UK. Although not a direct grant, ESOS requires large factories to conduct energy audits every four years to identify energy-saving opportunities.
• How it helps: While ESOS doesn’t provide funding, it highlights opportunities to reduce energy usage, which can lead to cost savings on energy bills. Once opportunities are identified, factories can apply for grants and incentives to fund recommended upgrades.
• What it is: The Carbon Trust offers financial support and expert advice to businesses, including factories, to help them reduce energy consumption. The fund provides up to £5,000 in capital contributions towards energy-saving projects.
• What it covers: Energy-efficient lighting, heating systems, compressors, renewable energy installations (e.g., solar panels), and other energy-saving equipment.
• Eligibility: Available to small and medium-sized enterprises (SMEs). While large businesses aren’t typically eligible, they can still access energy audits and advice.
• What it is: This tax relief scheme allows businesses, including factories, to write off 100% of the cost of qualifying energy-saving equipment against taxable profits.
• What it covers: The scheme encourages businesses to invest in energy-efficient technology, such as high-efficiency lighting, heating systems, and machinery.
• Eligibility: Factories that invest in energy-efficient products listed on the government’s Energy Technology List (ETL) can claim this tax relief. For the period between April 2021 and March 2023, factories can claim a “super-deduction” of 130% for qualifying investments in energy-efficient equipment.
• What it is: The IETF provides grants to energy-intensive businesses, including factories, to support the adoption of energy-efficient technologies and decarbonization.
• What it covers: The fund can be used to finance energy efficiency projects, such as replacing outdated machinery, upgrading to more efficient technologies, or adopting low-carbon processes. Projects that reduce energy consumption or switch to renewable energy sources are eligible.
• Eligibility: Open to energy-intensive industries, particularly manufacturing and industrial processes. Grants can cover up to 50% of the project cost, depending on the project size and the location of the factory.
• What it is: While not a direct grant, this scheme allows businesses to earn money by exporting surplus energy generated from renewable sources back to the grid.
• What it covers: Factories that install renewable energy systems, such as solar panels or wind turbines, can sell excess energy to the grid, helping to offset energy costs.
• Eligibility: Open to all sizes of businesses, including factories. The factory must generate electricity from eligible renewable sources.
• What it is: LEPs are partnerships between local authorities and businesses that support economic growth in specific regions. Some LEPs offer grants and low-interest loans to businesses, including factories, to fund energy efficiency upgrades.
• What it covers: Funding varies by region but can include grants for energy-efficient lighting, heating, machinery, and renewable energy installations.
• Eligibility: Available to businesses in specific regions, with a focus on SMEs. Check with your local LEP to see what support is available.
• What it is: Salix Finance provides interest-free loans to public sector organizations to improve energy efficiency, but it also supports businesses through programs related to carbon reduction.
• What it covers: Factories can access interest-free loans for projects like upgrading lighting, installing energy-efficient boilers, and optimizing energy use in industrial processes.
• Eligibility: Mostly public sector organizations, but some private sector businesses involved in public services may be eligible for support.
• What it is: Some regions in the UK offer Business Energy Efficiency programs, funded through local authorities, to help businesses reduce their energy usage.
• What it covers: The programs provide grants to cover part of the cost of energy-saving technologies, including LED lighting, insulation, heat pumps, and other equipment upgrades.
• Eligibility: Typically available to SMEs, but the criteria may vary depending on the region.
• What it is: Launched by the UK government, this venture capital fund is designed to support the development of clean energy technologies.
• What it covers: It’s targeted at innovative businesses developing technologies that reduce carbon emissions or improve energy efficiency in industrial processes.
• Eligibility: While primarily aimed at technology developers, factories may partner with innovators or seek out funding if they’re developing new energy-efficient products.
• What it is: The RHI incentivizes businesses to install renewable heating systems by providing payments for generating heat from renewable sources.
• What it covers: Factories that install systems like biomass boilers, solar thermal panels, or heat pumps can receive regular payments based on the amount of heat generated.
• Eligibility: Available to both large and small businesses, including factories, and applies to renewable heating systems installed on-site.
How to Apply and Maximize Funding:
• Energy Audits: Conducting an energy audit or assessment is often the first step to identify areas where energy-saving upgrades can be made. Some grant programs require this as part of the application process.
• Consultation with Experts: Organizations like the Carbon Trust and local authorities can offer advice on what schemes are best suited to your business and guide you through the application process.
• Local Authorities: Always check with your local council, as many offer regional grants for energy efficiency upgrades
The Advantages
By leveraging these programs, UK factories can significantly reduce their energy consumption, lower their carbon footprint, and benefit from long-term cost savings.