Funding solutions to support your net zero journey

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Identifying funding solutions to support your decarbonisation efforts, can be challenging and time consuming even before you get to the application stage.  

There are many funding schemes for all types of businesses with the aim of helping you to cut your energy usage and reduce your carbon emissions. We investigate some of the most common ones here. 

Industrial Energy Transformation Fund 

The Industrial Energy Transformation Fund (IETF) helps businesses in energy intensive industries to cut their bills and reduce carbon emissions through investing and implementing low-carbon technologies. 

The £315m funding is available until 2025 and is managed by the department for Business, Energy, and Industrial Strategy (BEIS), who will review key aspects of the fund. Phase 2 of the fund is currently open for applications (until 6th December 2021), this phase expands the scope to additionally support the deployment of decarbonisation technologies. BEIS aim to split Phase 2 into 4 windows, worth around £220m. The budget for the Phase 2 Autumn 2021 competition is up to £60m. 

Transform your business’ energy technology and learn more about the IETF here. 

Public Sector Decarbonisation Scheme 

The Government recently pledged £1bn in grants to support energy efficiency projects within the public sector to help their clean growth strategy. Organisations within the public sector can apply for funding during specific phase openings to aid energy efficiency and implement low-carbon heating projects with no maximum grant value. 

The scheme is delivered by Salix Finance and the financial year 2021/22 has a stronger focus on heat decarbonisation with £75m worth of grant funding. Supporting those looking to take a ‘whole building’ approach to their decarbonisation plans. From insulation, glazing, heating controls as well as heat pumps, eligible organisations can apply for as much funding as needed to achieve a reduction in heat consumption.  

Start your organisations decarbonisation journey and learn more here. 

MCS Charitable Foundation Grant 

Public organisations, not-for-profits and charities can apply for a MCS Charitable Foundation Grant, with available funds ranging from £5,000 to up to £50,000 (exceptional cases can be considered for a higher amount of up to £100,000). 

Eligible projects are those that boost the adoption of renewable energy and low carbon technologies with a UK wide impact, either via national reach or an approach that could be adapted or scaled up. Any applications with matched funding will be looked upon favorably and the next deadline for applications is January 2022 (opening date TBC), where applications will be reviewed and shortlisted and interviewed by the foundation.  

Learn more about the fundings criteria here. 

Net Zero Innovation Portfolio 

As part of the department for Business, Energy, and Industrial Strategy’s (BEIS) energy innovation programme, the Net Zero Innovation Portfolio provides funding for low-carbon technologies and systems. With decarbonisation at the forefront of the Governments energy plans, this fund will help support innovation in carbon-reduction technologies needed to tackle climate change. 

The fund is part of the Prime Minister’s ten-point plan for a green industrial revolution and boasts a £1billion fund to aid a decrease in the costs of decarbonisation. Creating world-leading industries, new green jobs, investing in regions and supercharging the UK’s science and innovation within the energy sector. Competitions will be launching throughout 2021, with opportunities to apply for funding focused on the government’s 10 identified priority areas. 

Explore the priority areas and how the Net Zero Innovation Portfolio can support your business here. 

Super Deduction – 25% off your investment 

HM Treasury currently supports a ‘Super-deduction’ which allows companies to cut their tax bill by up to 25% for every pound they invest. Companies must invest in qualifying new plant and machinery assets in order to claim: 

  • 130% super-deduction capital allowance on qualifying plant and machinery investments until 31 March 2023 for companies 
  • 50% first-year allowance (FYA) for special rate (including long life) assets until 31 March 2023 for companies 
  • Annual Investment Allowance (AIA) providing 100% relief for plant and machinery investments up to its highest ever £1 million threshold, until 31 December 2021 

This support has been provided to kickstart a recovery from the pandemic meaning there has never been a better time to invest new technologies. The kinds of assets which may qualify for either the super-deduction or the 50% FYA include, but are not limited to: 

  • Solar panels 
  • Electric vehicle charge points 
  • Building Energy Management Systems 
  • Combined Heat & Power 

A lack of funds shouldn’t stop you from investing in your business, there are plenty of options available – these are just some of the current funding solutions accessible right now. 

With Inspired Energy, you have the option to spread the cost of a project over its whole lifetime and with no upfront costs, you can enjoy the benefits of new technologies without a large up-front bill. 

​Our investment-grade feasibility studies give you the confidence you are making a sound investment and we can ensure you maintain optimal operational performance. Inspired Energy’s end-to-end service provides a risk-managed solution from initial feasibility, project design, installation, commissioning and asset management. 

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