Green Grants and Funding for SMEs in the UK: What's Available

For UK small and medium-sized enterprises (SMEs), deciding to go greener is smart — but one of the biggest questions is often: “How do we pay for it?” . The good news is there are a number of grants, funds and support programmes designed to help SMEs cover at least part of the cost of energy efficiency, decarbonisation, and sustainability improvements.

Here’s a guide to what’s currently out there and how to make the most of these opportunities.

What Grants & Support Schemes Are Available Now

Here are some of the key local, regional, and national grant schemes that UK SMEs can explore:

• Business Energy Advice Service (BEAS) and Local Authority Schemes — In certain regions, SMEs can get help with energy audits, follow-on grants for upgrades (such as insulation, greener refrigeration or lighting), often with match funding. Small Business UK

• Clean Growth Fund & Innovate UK — For more innovative or early-stage projects, especially in renewable tech or new energy-saving products, there are venture / innovation-oriented grants. These are more competitive, often require more detailed proposals, but can provide significant support. zerocarbonbusiness.uk

• Energy Efficiency Grants (Greater Manchester) — Businesses in Greater Manchester can get up to £5,000 (before VAT) towards energy efficiency improvements, such as replacing motors or upgrading heating/compressor systems. Often these grants require matching funding and estimates of CO₂ savings. greenintelligence.org.uk

• Green Business Grants (North Somerset / UKSPF Round 3 Extension) — SMEs and eligible sole traders can apply for small capital grants (formerly Net Zero Business Grants) to purchase and install equipment that reduces greenhouse gas emissions, cuts utility bills, and improves energy efficiency. Requires a carbon survey for larger grants. North Somerset Council

• West of England Green Business Grant — Up to £15,000 is available to SMEs in Bath & North East Somerset, Bristol, North Somerset or South Gloucestershire so they can upgrade energy efficiency, install solar panels or undertake other clean upgrades. businessclimatehub.uk

Tips for Navigating Grant Applications

To increase your odds of success, here are some practical tips:

1. Start with a carbon or energy audit — Many grants (especially larger ones) expect or require you to show a baseline: what your business currently spends and emits, plus where you think savings will come from.

2. Match funding matters — Some grants cover only part of the cost (50%, 60%, etc.). Make sure you understand what you’ll have to put in. For example, Greater Manchester energy efficiency grants often ask for matching contribution. greenintelligence.org.uk

3. Check geographic eligibility — Many grants are regional (e.g. West of England, Greater Manchester, North Somerset). Even if your business is in England (or Wales / Scotland), you may or may not qualify depending on location. Always check local councils or combined authority websites.

4. Keep on top of deadlines and funding rounds — Some schemes open only for limited periods (first-come first served). Missing deadlines or waiting too long could mean losing out. Subscribe to alerts from GOV.UK, regional funds or business-support services.

Final Thoughts

Grants and funding support make it much more affordable for SMEs to take green action, such as upgrading energy systems, improving insulation, installing renewable tech, or reducing waste. While grants rarely cover everything, they can reduce financial risk, speed up payback, and help make sustainability investments more viable.

At The Net Zero Co., our Sustainability Health Check can help you identify which grants you may be eligible for, work out where to invest first, and support your grant application strategy.