There are several ways in which UK businesses can go green by improving energy efficiency and increasing their reliance on renewable energy sources – but each initiative comes with a cost, and some infrastructure changes can be extremely expensive. Fortunately, there are a variety of government funding schemes, financial incentives, and grants available to help businesses become more sustainable, as part of the government’s general drive towards Net Carbon Zero by 2050.
In this article, we’ll discuss the main schemes and how you can apply – but remember that these are just a few examples. It’s important to do your own research, as there may be specific schemes for your sector that could help you save money and improve your carbon footprint.
How To Get Government Funding For Business
1. EV Charge Point Grant
The Electric Vehicle (EV) charge point grant is a government grant available to domestic homeowners that contributes up to £350 towards the cost of installing an EV charging station at home. It replaces the former Electric Vehicle Homecharge Scheme (EVHS), which is set to cease on 31st March 2023. Please note that EV charge point grants are not available to businesses, but employers can signpost information to their employees and help with the application process. Encouraging home EV charging point adoption among staff may reduce the necessity to install workplace charging stations.
2. Feed In Tariff (FiT) Scheme
The Feed in tariff (FiT) scheme is a government backed incentive scheme that provides payments to households and businesses that produce their own electricity independent of the grid, using renewable sources such as solar panels, heat pumps, and wind turbines. The scheme was introduced in 2010 under the terms of the Energy Act 2008 (Part 2: Electricity from renewable sources) and is still accessible today by all commercial and residential property owners. Payments are delivered for electricity units generated by all eligible installed systems, as well as additional payments granted for any excess energy exported back into the National Grid.
3. Workplace EV Charging Scheme
The Workplace EV Charging Scheme (WCS) is a voucher-based system of government grants that support eligible businesses towards the upfront costs of installing EV charging points in their workplaces. The vouchers are worth up to £350 per charging point, with each voucher valid for up to 180 days after successfully completing the application process. Applications are open to all businesses, public sector organisations, and charitable organisations.
4. Renewable Heat Incentive (RHI)
The Renewable Heat Incentive incentivises businesses, homeowners, and public bodies for installing renewable heating systems on their premises. Eligible systems include air source and ground source heat pumps, biomass boilers, combined heat and power (CHP) systems, deep geothermal, and solar thermal panels. Eligible products must be listed as a Microgeneration Certification Scheme (MCS) certified product and have a valid MCS certificate.
Since it was introduced in 2011, the RHI has part funded over 600,000 installations across the UK. Initially, the RHI was also available to homeowners, but the domestic RHI scheme was suspended for new applicants in February 2016 and finally wound up on 31 March 2022. Businesses can still apply for the incentive through the non-domestic RHI. Payments are made for 20 years after installation and are based on the heat output of your system.
5. Contracts For Difference (CFD)
The UK government Contracts for Difference (CFD) grant provides financial support to low-carbon electricity generation by homes and businesses, and is designed to provide predictability and stability to future electricity prices. Under the CFD scheme, a long-term contractual agreement is established between a low carbon energy generator and a Low Carbon Contracts Company (LCCC), in which any positive or negative deviations from a fixed reference price are paid out to the generator. The main benefit of the scheme for businesses is protection from energy price inflation through indexing the strike price to the Consumer Price Index (CPI).
Renewable Technology Installations And Support
At Lowe & Oliver, we provide a wide range of installation and support services for renewable technologies, and can advise you on the best solution to save your business money, and what grants are available to help defray your costs.
To find out more about how this works in practical terms, please have a look at this case study, or contact one of our team directly by calling 01865 951426.
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