Green Business Grants Programme (Small Capital Grants Category) – United Kingdom

Funding Category

• The Small Capital Grant Programme is helping small and medium-sized enterprises (SMEs) and sole traders in their journey toward decarbonisation by providing financial support for energy efficient and carbon-reducing technologies. By targeting technologies with proven benefits, the initiative helps businesses lower energy consumption, cut operational costs, and reduce carbon footprints. Capital funding, in the context of this grant, refers to funding allocated for infrastructure development directly associated with the specific business premises it supports.

Funding Information

• The grant value is ranging from £500 to £4,999.99
• Small grants are available for SMEs and sole traders located within North Somerset.
• Funding covers the technologies and direct installation costs, but not additional structural surveys or costs associated with permissions etc.
• Total project costs must not exceed the total eligible project cost (ex VAT).

Eligible Uses of Funds

• The grant can be used for projects that involve the purchase and installation of the following:
  • Cavity Wall, Loft or Floor Insulation
  • LED Lighting
  • Lighting Controls
  • Pipe, Flange, Valve, and Boiler Room Component Insulation
  • Automated Door Systems
  • Voltage Optimisation
  • EV Charging point
  • Energy efficient cooking equipment
  • Energy efficient appliances
• This list is not exhaustive, and they are open to other ideas.

Ineligible Uses of Funds

• The grant cannot be used for:
  • anything not recommended by a suitable independent assessment of your business’ carbon emissions (large grants only);
  • anything that does not meet the requirements of this grant guidance;
  • improvements that do not directly result in carbon savings, such as water saving systems;
  • retrospective applications for completed projects or those where a contract/commitment has been entered into with suppliers;
  • improvements that cost more than the total eligible project cost (ex VAT) in total;
  • improvements to buildings that are required by law to have a domestic energy performance certificate;
  • activities which are part of a new build or extension, the project must be improving existing buildings;
  • activities that you are required by law to carry out, such as to meet a condition of planning permission or minimum energy efficiency standards;
  • revenue (non-capital) costs such as surveys, consultancy, planning fees or improvements such as migration to cloud or remote services;
  • projects that do not align with the core values of this funding, especially those involved in (or potentially involved in) the following activities:
    • environmental harm;
    • exploitation;
    • discrimination or inequality;
    • animal cruelty;
    • tobacco, alcohol or gambling;
    • weapons or military development;
    • fraudulent activities.

Eligibility Criteria

• The following eligibility criteria apply to all sections of the grant funding:
  • You are EITHER a small or medium sized enterprise–fewer than 250 employees AND a turnover of equal to or less than £36 million OR a balance sheet of equal to or less than £18 million, including any partnership your organisation is a part of or any linked enterprises; OR you are a sole trader – a self-employed individual who owns and runs a business, and does not employ any additional employees (other than themselves);
  • you are a registered business whose trading address is in North Somerset
  • you are a UK taxpayer who can supply a valid UTR number;
  • you will use the grant for an existing building structure where energy efficiency improvements have been identified – the grants are not applicable to new buildings or structures;
  • you can provide evidence of the needed improvements. Large grant applications must provide evidence of the improvements through a carbon survey, while small grant applications can be self-evidenced (e.g., through energy bills, energy inefficient equipment, heat loss or air leaks, and poor lighting efficiency);
  • your total project cost will not exceed the stated total project costs for each grant, (£10,000 for the small capital grants and £30,000 for the large capital grants);
  • you have not received more than £315,000 of grants in the last three financial years;
  • you have at least 1 year remaining on your lease or rental agreement, if relevant;
  • you have written landlord permission to conduct any works, if applicable; • the building where you want to carry out improvements meets current Building Regulations, where relevant;
  • you have planning permission, if required;
  • you can cash-flow your project so you can purchase what you need before claiming your grant funding;
  • you have not started any works, or entered into any contract, relating to your grant expenditure.

Ineligibility Criteria

• The following businesses are not eligible to apply:
  • large businesses, partnerships, and businesses using cash-based accounting;
  • franchises or smaller business units part of a larger parent company structure;
  • religious institutions;
  • schools, colleges and universities;
  • Charities or community interest companies;
  • private domestic landlords or businesses operating from buildings that are required by law to have a domestic Energy Performance Certificate;
  • Applicants or organisations that are in administration, that are bankrupt or going through bankruptcy proceedings, that are insolvent, or for whom a striking off notice has been made.

For more information, visit North Somerset Council.