Green & Efficiency 4 min read Updated September 2026

Are There Energy Grants for Small Businesses in the UK?

Chris Richards Chris Richards
Are There Energy Grants for Small Businesses in the UK?

Yes, but not through one single scheme. SME energy grants in the UK are spread across the gov.uk business finance support finder, local growth hubs, devolved schemes in Scotland and Wales, and occasional sector-specific funds, so a small business usually needs to check several routes rather than one.

Small business energy grants is one of those searches that promises a tidy answer and delivers a scattered one. There is no single pot every small firm applies to.

That is frustrating if you expect one form on one website, but it also means there is more funding across the system than a single headline scheme would suggest.

Funding tends to be split by nation, sector and project type, which is exactly why the search feels harder than it should. Knowing where each type lives makes it much shorter.

Key Takeaway There is no single national scheme. Funding is scattered, so check four routes rather than one.

Is there a single small business energy grant scheme?

No, there is no single, permanent small business energy grant that every UK company can apply to. Funding runs across multiple national, devolved and regional programmes that open and close on their own timetables.

The four routes a small business can check for energy funding
There is no one scheme; funding sits across four routes worth checking in turn.

The biggest misconception

Business owners search expecting a named scheme, do not find an obvious one, and conclude no support exists at all. In reality, SME grants tend to sit under broader efficiency, decarbonisation or small business programmes rather than a headline mentioning energy.

It is worth knowing there is no broad bill-support scheme any more either. The Energy Bill Discount Scheme, which capped unit rates during the crisis, ended in March 2024, so today’s support is about efficiency projects rather than the bill itself.


Which small businesses tend to qualify for support?

Eligibility usually depends on business size, sector and location rather than energy use alone, with many schemes targeting SMEs under a defined employee or turnover threshold, and some reserved for particular industries.

Funding route by business type

Business typeLikely funding routeWho to check with
Micro business, under 10 staffNational SME schemes, growth hub grantsgov.uk, local growth hub
Manufacturing or industrial SMESector decarbonisation fundsTrade body, DESNZ guidance
Hospitality or retail SMERegional and local authority schemesLocal council, growth hub
Business in Scotland or WalesDevolved national schemesBusiness Wales, Scottish agencies

A micro business with under 10 staff often has access to different support than a 200-person company. Location matters more than most expect: a firm in a regeneration area can sometimes access funding unavailable a few miles away.

Sector counts too. Manufacturing and industrial firms have decarbonisation funds that hospitality or retail businesses cannot touch, while some local pots are open to any SME in the area regardless of what it does.


Where should a small business start looking?

Start with the gov.uk business finance support finder, then call your local growth hub directly, since growth hubs often know about small, regionally funded grants that never appear in a national search.

Four sources worth checking

  • gov.uk finder: filtered to your region and sector.
  • Local growth hub: for regionally funded pots.
  • Devolved agencies: Business Wales or a Scottish enterprise agency, if based there.
  • Accountant or broker: who may already know current options.

A short phone call beats an hour of searching most of the time, and the gov.uk business finance support finder is the best national starting point. Our guide to business energy efficiency grants covers the broader funding categories in more depth.

If you are in Wales, Business Wales is the central point for advice and referrals, and in Scotland the Find Business Support service lists devolved schemes. Both surface funding that a UK-wide search will not.


What paperwork does a grant application usually need?

Most small business energy grant applications ask for recent energy bills, a supplier or installer quote for the proposed work, basic company details, and evidence that you meet the scheme’s size and sector criteria.

Documents worth having to hand

  • Energy bills: the last 12 months, or at least a recent one showing annual usage.
  • A written quote: from a supplier or installer for the proposed work.
  • Company information: registration number, turnover and employee count.
  • Trading history: evidence of it, if the scheme requires a minimum period.

Having this ready before you apply speeds things up considerably. If a broker or a letter of authority is involved anywhere in the process, make sure it is set up correctly before you submit anything.

Key Takeaway A grant pays for the kit once. A better contract cuts the rate on every unit you use.

Can a small business combine a grant with switching supplier?

Yes. Applying for an efficiency grant and comparing your energy contract are entirely separate processes, and doing both together usually produces a bigger overall saving than either one alone.

Two savings, not one

A grant reduces the cost of a specific project, whether that is insulation, lighting or new plant. Switching supplier reduces what you pay for every unit you use in the meantime, regardless of how the grant application goes.

Treating them as one decision is a common mistake. The grant may take months and might be refused, whereas a contract comparison can be done today and locks in a saving straight away.

Businesses that switch through Utility Saving Expert save an average of £1,952, and there is no reason that saving should wait on a grant decision. Compare a full panel of business energy suppliers while any application is in progress.

Frequently asked questions

Related Insights

View all Insights

Newsletter

Win £1000 towards your business energy bills

Join our newsletter for monthly energy-saving tips, market updates and supplier deals for business owners. Every subscriber is entered into our £1,000 prize draw.
Saving Tips
Helpful Guides
Monthly Draw
16,000+ subscribers
No spam, ever. Unsubscribe anytime. T&Cs apply.