Funding for going greener

In addition to all the benefits you’ll reap from pursuing more sustainable strategies, your business may even qualify for funding to help you change over to a greener way of working.

Often, the difficulty with going greener is that you have to finance new equipment before you can reap the benefits. So it’s good to get a helping hand—especially when we’ll all benefit from your investment.

Start with Business Link Yorkshire

Business Link can give you lots of advice on ways to cut the cost of going greener—and they also have an online grants & support directory to help you find sources of funding.

Tax breaks for going greener

Enhanced capital allowances (ECAs) let you claim 100% first-year capital allowances on eligible plant and machinery. There are three schemes:

  • Energy-saving plant and machinery
  • Low-carbon-dioxide emission cars, and natural gas and hydrogen refuelling infrastructure
  • Water conservation plant and machinery.

Businesses can write off the whole of the capital cost of their investment in these technologies against their taxable profits in the period during which they make the investment.

Funding Decision Tree

Future Energy Yorkshire's funding decision tree helps you to navigate your way through the various regional, national and European sources of funding for your new/renewable energy project—whether that’s for technology research, development, demonstration or deployment. Finding the right funding source for the right project can otherwise be tricky—there’s currently no single place to look for renewable energy funding.

Interest-free, unsecured loans

The Carbon Trust helps businesses to reduce their carbon emissions, and supports the development of commercial low-carbon technologies. They offer interest-free energy efficiency loans: SMEs which have been trading for at least 12 months can apply for anything from £5,000 to £100,000—all unsecured, interest-free, repayable over 4 years, and with no arrangement fee. They also offer 100% capital allowances on qualifying investments on equipment in the first tax year, and free site energy surveys.

Public-sector organisations

Salix is an independent company which receives funding from the Carbon Trust to accelerate public sector investment in energy-efficiency technologies. It funds public-sector organisations, which includes local authorities, NHS foundation trusts, higher & further education institutions and central government. Salix helps these organisations to improve energy efficiency, meet targets, reduce energy bills and raise green credentials, by making long-term, ring-fenced, interest-free conditional grants carbon saving projects.

Low-Carbon Buildings Programme

From time to time, BERR’s Low-Carbon Buildings Programme provides grants towards the cost of installing certain technologies. You’ll need to check whether funding streams are currently open for businesses. Previously, business grants have been available for the installation of:

  • Solar photovoltaics
  • Wind turbines
  • Small hydro
  • Solar thermal hot water
  • Ground-source heat pumps
  • Air-source heat pumps
  • Bio-energy
  • Renewable combined heat & power (CHP)
  • MicroCHP
  • Fuel cells.

Grants for research

The Carbon Trust’s Applied Research Programme is open to UK businesses and academic research institutions. It supports the development and commercialisation of technology with the potential to reduce UK CO2 emissions, with grants of up to £250,000. Check the website for dates of the next call for interest.

Bio-energy Capital Grants Scheme

The Bio-energy Capital Grants Scheme supports the installation of biomass-fuelled heat and combined heat & power projects in the industrial, commercial and community sectors in England. Funding streams open and close regularly, so you should check with the website for application rounds in 2009 and 2010.

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