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Northern Powerhouse European Union

SME energy efficiency fund improved

SMEs are now able to claim capital grants of up to 30% of the cost of energy saving equipment through the Carbon Trust’s £7 million Green Business Fund.

SMEs are now able to claim capital grants of up to 30 per cent of the cost of energy saving equipment through the Carbon Trust’s £7 million Green Business Fund.

The fund was initially launched in April 2016 offering up to 15 per cent of costs, up to a maximum of £10,000.

Capital funding

The capital contribution available to SMEs has now been doubled to 30 per cent in order to support even more businesses investing in new and more efficient equipment. The £10,000 maximum contribution still stands. 

The fund is available on a first come first served basis and can be used to purchase a range of equipment, including lighting, heating, ventilation and air conditioning (HVAC) and energy efficient controls.

It is expected to support up to 2,000 SMEs across England, Scotland and Wales and leverage £55 million of investment in energy saving technologies. Around £130 million in lifetime energy savings are expected to be delivered.

Advice

As well as capital contributions for new equipment, businesses are able to receive energy opportunity assessments and implementation advice through remote or on-site support.

The Carbon Trust can help applicants decide on suitable suppliers through its accredited green business directory, and support the procurement process by assisting with the procurement brief and reviewing supplier response.

According to a Carbon Trust survey of senior decision makers in SMEs, nearly half are concerned about the amount they currently spend on energy. Lack of money to invest in new equipment and lack of affordable options ranked as the largest perceived barriers in making improvements.

Applicants must have less than 250 employees to be eligible, and funding is currently limited to projects that pay back on initial investment in less than five years. To find out more, click here.