While the cost of living is still affecting households across the UK and energy fees are rising, businesses are seeing a huge reduction in the amount of electrical goods they are selling and installing. To combat this, the government has provided a variety of energy efficiency grants worth £6 billion.


Current Energy Efficiency Grants:

By 2028, the government plans to invest £12.6 billion for businesses to create environmentally-friendly jobs. In turn, this will reduce energy consumption and support cost efficiency across households, healthcare, education and businesses.

The current energy efficiency grants include:

Boiler Upgrade Scheme (BUS) – £1.5 billion

The Boiler Upgrade Scheme offers a solution to replace fossil fuel heating systems with heat pumps or biomass boilers. Fossil fuel systems include oil, gas and electric. However, you cannot switch these for a hybrid heat pump or low-carbon heating system.

If you new system meets the standards and has a capacity up to 45kWth, you may be entitled to:

– £7,500: air source heat pump

– £7,500: ground or water source heat pump

– £5,000: biomass boiler

Green Heat Network Fund (GHNF) – £288 million

The Green Heat Network Fund supports the marketing, construction, improvement and expansion of low and zero-carbon heat networks. This grant hopes to increase low-carbon heat networks for public, private and third sector organisations.

To be eligible, you must be a:

– Public sector organisation (such as an NHS Trust, university or government department)

– Registered private sector organisation that submits annual accounts

– Registered third sector organisation that submits annual accounts (such as a charity or community investment company)

Heat Network Efficiency Scheme (HNES) – £32 million

The Heat Network Efficiency Scheme was created to improve district heating and communal heating projects that are currently not up to standard and seeing poor results. This aims to help customers and operators in public, private and third sector organisations.

In order to apply, you must be a:

– Public sector organisation (including an NHS Trust, university or government department)

– Private sector organisation that is registered and supplies annual accounts

– Third sector organisation that is registered and supplies annual accounts (including a charity or community investment company)

If successful, you may receive between £15,000 and £24,000 (excluding VAT) depending on the scale of the project and your reasoning.

Industrial Energy Transformation Fund (IETF) – £500 million

The Industrial Energy Transformation Fund works to combat multiple problems while supporting a range of project types, including:

– Decarbonisation: using specialist technologies to achieve industrial emissions savings

– Energy efficiency: using specialist technologies to reduce industrial energy consumption

– Studies: allows feasibility and engineering studies to support companies in investigating energy efficiency and decarbonisation projects before investing

In the most recent phase, coal and lignite mining and gas and petroleum extraction activities can no longer apply for the IETF grant. However, the following industries can:

– Control environment horticulture (CEH)

– Data centres

– Industrial laundries

– Manufacturing

– Mining and quarrying

– Recovery and recycling of materials

Before applying, it’s important to understand the minimum and maximum grant you can apply for depending on the company. The phase 3 thresholds are:

– Deep decarbonisation: £75,000 (*SMEs) or £100,000 (*LCs) to £14 million

– Energy efficiency: £75,000 (SMEs) or £100,000 (LCs) to £30 million

– Engineering studies: £50,000 to £14 million

– Feasibility studies: £30,000 to £7 million

SMEs: small to medium enterprises

LCs: large companies

Social Housing Decarbonisation Fund (SHDF) – £800 million

The Social Housing Decarbonisation Fund will develop social housing sitting below band C of the Energy Performance Certificate (EPC). This includes installing better energy performance measures to:

– Combat fuel poverty

– Deliver warm and energy-efficient homes

– Improve the retrofit sector

– Increase comfort, health and well-being of tenants

– Reduce carbon emissions

– Support green jobs

This energy efficiency grant hopes to improve energy performance in 20,000 social housing properties, leading to reduced bills and carbon emissions. It also strives to upgrade 2,000 homes to EPC band C and support 1,200 local jobs.

To apply for the grant, you must be a:


– Combined authority

– Local authority

– Registered provider of social housing (such as housing associations and arms-length management organisations (ALMOs))

– Registered charity that own social housing


– Defined by the Housing and Regeneration Act 2008 as below EPC band C

Heating, Cooling and Ventilation Solutions and Advice at Chillaire

With these energy efficiency grants and many more to come, HVAC manufacturers and suppliers can provide you with affordable, efficient systems.

If you have any questions about these grants, or the services or products we may be able to offer you or for your business, please contact us today. We will ensure we design the most suitable air conditioning or heating system, and solution, for your needs with energy efficiency and longevity in mind.

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