Which energy efficiency grants and tax reliefs fit your business?

Start with your postcode, business size and proposed equipment. Check local grants and devolved support, then assess capital allowances separately. Annual Investment Allowance can cover up to £1 million of qualifying plant and machinery [S1]. Several widely advertised funds are closed or paused, so do not budget for an award without confirming eligibility and availability. Checked October 2026.

Last checked 17 October 2026

Which energy efficiency scheme fits your site?

Separate a grant, a repayable loan and a tax deduction before comparing them. Start with your postcode, legal entity, building tenure and equipment list. Ofgem directs businesses to government funding searches and local councils, and says applications normally need a business case [S10].

Use our cut energy costs hub, grants tool and site check to organise the project. All scheme statuses below were checked on 17 October 2026; published availability is not confirmation that funds remain for your application.

What help is available in Scotland, Wales and Northern Ireland?

Scotland — checked 17 October 2026. The Scottish Government publishes interest-free loans up to £100,000 for small and medium enterprises undertaking renewable or efficiency projects. Cashback can cover 75% of eligible efficiency costs up to £20,000, and 75% of eligible renewable heating costs up to £10,000. Awards are first come, first served while funds last [S4]. Start through Business Energy Scotland, the application route linked by the government. Do not treat cashback as an automatic standalone grant.

Obtain a qualifying report recommending the measures before applying. Published eligibility requires a payback of no more than 20 years; linked measures can be assessed as a package. Do not start installation or pay for materials before the loan offer if seeking cashback. Confirm any proposed co-funding with the scheme [S14].

Wales — checked 17 October 2026. The Green Business Loan Scheme supports efficiency and low-carbon work, including heating, ventilation and building fabric. The government announcement extends funding until 2028. It is a loan, with terms and approval assessed through the application process [S5].

For a Welsh small or medium enterprise, the Ynni Cymru guidance specifies an operating base or headquarters in Wales and an integrated smart local energy project. The 2026–27 round’s stated deadline was noon on 21 May 2026; do not present it as open now. Its guidance requires completion by 31 March 2027. A delivery deadline is not an application deadline [S11]. No later open round was verified for this guide.

Northern Ireland — checked 17 October 2026. Invest NI’s capital grant is paused. Its published criteria include a registered company based in Northern Ireland, at least two years’ trading, business-rates registration and ownership or a long-term rental agreement. Farms and charities are excluded under those published rules. The page warns eligibility may change after review [S6]. Leave any potential award out of your budget now.

Are local grants or Great British Energy funds open to businesses?

England local routes — checked 17 October 2026. Ask your council which business efficiency rounds actually cover your postcode. Ofgem recommends checking council energy-efficiency or sustainable-growth grants [S10]. Request the current guidance, eligible equipment list, application deadline and award process. We have not verified a particular open council award, so no local grant amount is included here.

Great British Energy — checked 17 October 2026. The Local Power Plan addresses local and community generation. It invites community and local-government project ideas and sets out funding and support pathways [S9]. A business hosting a community project should ask who can apply and own the assets. A national funding announcement does not establish a grant for replacing your own lighting. No universal business award amount or open general efficiency round was verified.

Which advertised funds are already closed?

PSDS — checked 17 October 2026. Phase 4 supports public bodies’ heat decarbonisation and efficiency. It closed to new applications in November 2024, although grants continue to be awarded. Continuing delivery does not mean applications have reopened [S7].

IETF — checked 17 October 2026. The official collection records closure in July 2025, no further extension and no planned successor. Existing projects can continue; that does not create an application route for a new factory project [S8]. Exclude it from your proposed funding unless a new official scheme is published.

Which capital allowances can reduce the taxable cost?

Tax routes — checked 17 October 2026. Annual Investment Allowance (AIA) lets you deduct qualifying plant and machinery expenditure from profits before tax, up to the £1 million allowance. Accounting-period and shared-business rules can affect the amount [S1]. Check with your accountant before allocating it to a project.

Full expensing gives companies a 100% first-year deduction for qualifying new and unused plant and machinery. The separate 50% first-year allowance applies to qualifying special-rate expenditure. These are deductions, not cash grants [S2]. HMRC classifies solar panels, building integral features and added thermal insulation as special-rate items; solar does not qualify for full expensing [S3]. Check with your accountant which route applies.

For electric vehicle chargepoint equipment, HMRC lists a separate 100% first-year allowance for qualifying purchases before April 2027 [S13]. This is distinct from the Workplace Charging Scheme (WCS), whose current grant is up to £500 per socket and which runs until 31 March 2027, subject to eligibility [S12]. Read UK government EV charging schemes for the charging-specific route.

What evidence should you prepare before applying?

Prepare an equipment schedule, itemised quotes, energy baseline, projected consumption and evidence of tenure. Invest NI’s published requirements illustrate why bills, accounts and permission to use the premises matter, even though its scheme is paused [S6]. Ask each live funder what it requires before ordering or paying deposits.

For your business case, calculate avoided energy × applicable unit charge, less extra operating costs. Then divide your net capital outlay by that annual benefit for simple payback. Use business electricity price data for context and your own contract for the calculation. Our energy saving guide shows a worked example.

Ask the funder about retrospective spending, match funding, combining awards, reimbursement timing and repayment conditions. Keep a written answer for your project. Have your accountant check tax treatment and your solicitor check lease, consent or clawback terms. Compare the project without an award before deciding it is affordable.

What is your next step?

Choose the measure first, using solar for business and solar and battery cost reduction where relevant. Then get matched with an installer that covers your area.

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