Get business grants, green loans and financing for a retrofit

There are a number of funding schemes, tax breaks and loans that can help SMEs do a building retrofit.

Timing a renovation to take advantage of funding opportunities can be a key factor in deciding when and how to take on a retrofit.


  1. Find business grants and schemes
  2. Apply for the Boiler Upgrade Scheme
  3. Apply for the Industrial Energy Transformation Fund (IETF)
  4. Get a business rate exemption on energy generation and storage
  5. Save VAT on energy saving measures for home businesses
  6. Get a green loan

Find business grants and schemes

Use our finance and support page to find green business grant programmes in your region.

Many are designed to help with improving energy efficiency and offer:

  • grants with no payback requirement
  • matching funds up to a total amount or percentage of costs
  • loans with low or no interest
  • free expertise for energy assessments

Funding is dependent on the size of your business and where it’s located.

You can also use GOV.UK’s fund listing service to find programmes that apply to your business.

Apply for the Boiler Upgrade Scheme

Homes and smaller non-domestic properties in England and Wales are eligible for up to £6,000 off the cost of a heat pump or biomass boiler.

The Boiler Upgrade Scheme runs until 2028 and has £450M in total funding that will be spent on a first come first served basis.

To qualify you must have a building that:

  • can have both air and water heated with a 45kWth installation
  • is currently using fossil fuels or non-heat pump electric heat
  • has a valid Energy Performance Certificate
  • has sufficient loft and cavity wall insulation

Find a certified installer to check if your property is suitable.

The grant is automatically applied to your installation cost by the company doing the work if you’re eligible.

Find out more about the Boiler Upgrade Scheme from OFGEM.

Apply for the Industrial Energy Transformation Fund (IETF)

Businesses with high energy use from industrial processes can apply for the Industrial Energy Transformation Fund (IETF).

IETF supports industry to cut energy bills and carbon emissions by investing in energy efficiency and low carbon technologies.

The IETF provides matching funding per business.

Following the success of Phases 1 and 2, IETF Phase 3 has increased total grant funding by £185m.

Funds are available for:

  • feasibility or engineering studies
  • improving energy efficiency for an industrial process
  • reducing emissions caused by an industrial process

How much you will get will depend on the type of funding and the size of your business.

IETF will run until 2027 and is available across the UK.

Find out the Scottish Industrial Energy Transformation Fund (SIETF) if you run a business in Scotland.

Subject to business case approval, Phase 3 of the IETF will open for new applications in early 2024.

Check GOV.UK for case studies of successful projects.

More information will be announced in due course, including about:

  • stakeholder events
  • competition window timelines
  • eligibility criteria
  • application processes
  • previous IETF competition winners

Find out more by contacting:

Get a business rate exemption on energy generation and storage

You can get a business rate exemption for eligible equipment used in on site renewable energy generation and storage.

According to the 2022 Spring Statement you must be located in England and purchase:

  • solar panels, heat pumps or other onsite renewable technology
  • energy from low-carbon heat networks

Check GOV.UK about business rate relief for full details when they become available.

Save VAT on energy saving measures for home businesses

From 2022 to 2027 VAT will no longer be charged on some domestic energy saving measures in England, Scotland and Wales.

It will be cheaper to make your home business more energy efficient, including insulation, heat pumps, solar panels, wind turbines and more.

Get a green loan

A number of banks can help SMEs finance projects such as building retrofits.

Usually banks who can help provide ‘green loans’ to pay for building upgrades.

To apply you might need:

Incentives for green loans can include:

  • waived fees
  • flexible repayment schedules
  • variable or fixed interest rates

Ask your bank about what they offer. Most banks also have green investment options. Green investment options allow you to put money into funds that work to improve sustainability.