A guide to the key funding schemes available to UK businesses this year

Are there grants available for green energy? The short answer is yes – and in 2026, there are several schemes worth knowing about. Whether you’re considering heat pumps, EV charging, or solar, here’s a summary of the key opportunities currently open to businesses.

Boiler Upgrade Scheme (BUS)

Now extended to 2028, the Boiler Upgrade Scheme has been expanded to include small and medium-sized non-domestic buildings. It provides upfront grants of £7,500 for air source or ground source heat pumps, and from April 2026 the grant is deducted directly from your installer invoice, reducing what you need to find upfront.

One important caveat: a poorly insulated building will cause a heat pump to work harder than it should. The relaxation of EPC requirements from April might seem like helpful flexibility, but good insulation remains essential for any system to perform efficiently and cost-effectively. It’s worth addressing before installation rather than after.

Workplace Charging Scheme (WCS)

Extended until March 2027, the Workplace Charging Scheme covers up to 75% of EV charge point installation costs, up to £500 per socket, capped at 40 sockets per applicant. If your business is considering EV infrastructure, this remains one of the more straightforward grants to access.

0% VAT on Energy Saving Materials

The zero VAT rate on qualifying installations – including solar panels and heat pumps – runs until March 2027. While not a grant in the traditional sense, the saving is material and worth factoring into any project cost assessment.

Capital Allowances

Businesses can deduct 100% of qualifying solar and plant costs from taxable profits in year one through full expensing. For businesses with a tax liability, this can significantly improve the financial case for investment.

Regional and local funding

Beyond the national schemes, regional and local grants exist across the UK, with some offering significant funding for SME decarbonisation projects. These vary by area and change regularly, so it’s worth checking your local council, regional Growth Hub, and the GOV.UK grant finder for what’s currently available near you.

The funding landscape is moving – don’t miss what’s available to you

Green energy funding shifts regularly, and keeping track of what applies to your business can be time-consuming. If you’d like help understanding what’s available and how to make the most of it, the team at Practical Energy Solutions is here to help.

Get in touch on 01733 595150, to discuss your options.