The global climate crisis is at the forefront of everyone’s minds. So, it’s understandable that you are looking for ways to make your small business more sustainable.
Luckily, there are a number of funding options available, that have been specifically designed to improve the sustainability of small businesses. As well as support from the government, there are several banks and organisations across the UK offering small business grants, loans and incentives. Take a look at the list of funding options below, to help your small business on the road to net zero.
Click the links to jump to each section:
Government funding for small businesses
Whether funded by the UK government or a local council, there are a number of green business grants available for small businesses.
UK government
The UK Government has committed almost £5 billion to help businesses reach net zero by 2050. To make it easier for small businesses to find funding, they have recently launched their Find a Grant service. This can be used to search for funding across the country, that can help your business to increase energy efficiency and decrease carbon emissions.
The Find a Grant service is constantly being updated. Keep an eye on this service for green energy grants from the UK government.
Scottish government
The Scottish Government has set an ambitious target to become net zero by 2045, five years ahead of the rest of the UK. To meet this target, they have created the Scottish Growth Scheme. Through this scheme, the First Minister has offered up to £500 million to support the sustainable growth of small businesses. This is currently being delivered through several green initiatives.
There is further financial support available through the Find Business Support service, which is regularly updated with grants, loans and advice. Use this service to find green business grants from the Scottish government.
Welsh government
The Welsh government has partnered with The Development Bank of Wales to provide financial support to small businesses. Together, they have launched the Green Business Loan Scheme. This includes discounted interest rates and flexible repayment dates, helping business owners to invest in sustainable infrastructure.
There is additional funding available through the Finance Locator. Browse the small business grants from the Welsh government.
Northern Irish Executive
The Northern Irish Executive supports the Energy Saving Trust with their Northern Ireland Sustainable Energy Programme. This is an £8 million fund, collected from both domestic and commercial electricity customers through a public service obligation (PSO). Through this programme, you can use the funding to make energy efficiency upgrades to your business.
There are a number of small business energy grants available in Northern Ireland. Explore the full list of funding options on the Business Support Finder, provided by Invest Northern Ireland.
Local councils
Your local authority might have funding available to support you in making your small business more sustainable. The funding options can vary from council to council, so have a look on your local authority’s website or give them a call to find out what’s available to you.
If you’re not sure what local authority your business falls under, just visit gov.uk/find-local-council and enter your business’s postcode.
Bank loans for small businesses
There are several green financing options available from major banks across the UK. If you don’t see your bank listed, it might be worth contacting them directly and asking if they offer anything similar.Lloyds Bank - Clean Growth Financing Initiative
Lloyds Bank allows businesses to access discounted lending through their Clean Growth Financing Initiative. This aims to support business owners with a broad range of sustainable investments, including the reduction of carbon emissions for core processes, properties and infrastructure.
Find out more about the Clean Growth Financing Initiative at Lloyds Bank.
Barclays Bank – Sustainable Green Solutions
Barclays Bank offers a range of flexible financing options to support your business’s sustainable activities. With green loans, deposits, bonds, guarantees and indemnities, your business can address environmental problems and achieve sustainable objectives.
Find out more about the Sustainable Green Solutions at Barclays Bank.
HSBC UK - Green SME Fund
HSBC UK supports businesses that can demonstrate a commitment to sustainability. The Green SME Fund was designed to make sustainable solutions more accessible for small businesses, with a maximum potential loan value of £300k.
Find out more about the Green SME Fund at HSBC UK.
NatWest – Green Loans
NatWest aims to support the sustainable ambitions of small businesses. With a Green Loan, you can invest in sustainable assets for your business premises, including solar panels and heat pumps, helping you to achieve a clean building standard.
Find out more about the Green Loans at NatWest.
The co-operative bank – Renewable Energy Funding Scheme
The co-operative bank provides up to 100% loan funding for renewable energy projects. Through the Renewable Energy Funding Scheme, businesses can cover the cost of renewable energy technologies, from electric vehicles to LED lighting.
Find out more about the Renewable Energy Funding Scheme at the co-operative bank.
Royal Bank of Scotland – Green Loans
The Royal Bank of Scotland supports businesses towards clean buildings, clean energy and clean transport. With a Grean Loan, you can improve the sustainability of your daily business operations, with a low carbon heating system and energy storage solution.
Find out more about the Green Loans at the Royal Bank of Scotland.
Development Bank of Wales – Green Business Loan Scheme
The Development Bank of Wales helps businesses to make decarbonisation enhancements. Through the Green Business Loan Scheme, you can access funded consultancy support, which provides expert advice on decarbonisation methods.
Find out more about the Green Business Loan Scheme at the Development Bank of Wales.
Bank of Ireland – Green Business Loans
The Bank of Ireland offers discounted finance through their Green Business Loan. This is aimed at businesses and farms who want to implement energy saving initiatives, including waste treatment efficiencies and renewable energy technologies.
Find out more about the Green Business Loans at the Bank of Ireland.
Other funding for green businesses and sustainable projects
As well as government grants and bank loans, there are a huge range of organisations that offer financial support to small businesses. These are usually dependant on your location and business type. But if you want to stay up to date with the latest sustainability initiatives in your area, you can always join your local chamber of commerce and connect with likeminded business owners.
SSE Community Funds
SSE Renewables provides financial support to a wide range of community projects. We aim to create social, economic and environmental change in the communities that we serve. Since 2008, our funds have supported over 9,000 community projects, from infrastructure improvements to employment initiatives.
Eligible locations: England, Wales, Scotland and Northern Ireland.
Find out more about our Community Funds.
Industrial Energy Transformation Fund (IETF)
The Industrial Energy Transformation Fund (IETF) helps businesses invest in energy efficiency and low carbon technologies. This fund is targeted at businesses with particularly high energy use, who are looking to decrease their energy bills and carbon emissions. Originally launched in 2020, this fund aims to provide up to £185 million between 2024 and 2028.
Eligible locations: England, Wales and Northern Ireland.
Closing date: 19/04/2024
Find out more about the Industrial Energy Transformation Fund.
SME Loan Scheme
The SME Loan Scheme supports businesses with the installation of energy efficient systems, including heat pumps, biomass boilers and air conditioning upgrades. Through this scheme, business owners can receive a loan of up to £100k and a cashback grant of up to £30k.
Eligible locations: Scotland.
Closing date: No closing date.
Find out more about the SME Loan Scheme.
Small Business Bonus Scheme
The Small Business Bonus Scheme provides business premises owners with rates relief. The rates relief varies depending on the rateable value of your premises. To be eligible for this scheme, your business premises must have a rateable value of £20k or less.
Eligible locations: Scotland.
Closing date: No closing date.
Find out more about the Small Business Bonus Scheme.
The Sustainable Community Buildings Programme
The Sustainable Community Buildings Programme helps improve the environmental performance of business premises. With a team of sustainability experts, this programme offers carbon literacy training to business owners. This programme is open to different council areas at different times, to ensure an even spread of funding across Northern Ireland. Make sure you check when your business’s council area can apply.
Eligible locations: Northern Ireland.
Closing date: 19/02/2025.
Find out more about the Sustainable Community Buildings Programme.
Get further support from SSE Energy Solutions
For more information on becoming a sustainable business, take a look at our hub. Here, you’ll find all the resources you need on your net zero journey.
The page was last updated in March 2024. While we try to update this page regularly, it might not always contain the most up to date information on grant funding, as we can’t always respond to changes as quickly as we’d like to.
Please note, SSE Energy Solutions has written this blog for information purposes only. We recommend speaking to your own advisors directly before taking any direct action that will impact your business finance.