With the drive to ‘Net Zero 2050’ and businesses and households being asked to seriously look at their carbon footprint with a view to reducing this by half this decade, it’s important to stay on top of all the FREE grant funding, incentives, support and advice that’s available!
In this BLOG we summarise some of the recent legislative changes made by the Chancellor to drive uptake of greener energy solutions and also identify some of the green grant funding, and other support and advice on offer and how to apply…
1.Boiler Upgrade Scheme – from April 2022
The government will provide grants to encourage property owners to install low carbon heating systems such as heat pumps, through the Boiler Upgrade Scheme (BUS). The purpose of these grants is to help property owners overcome the upfront cost of low carbon heating technologies.
The scheme will be open to domestic and small non-domestic properties in England and Wales. It will run from 2022 to 2025.
Low carbon heating systems that are commissioned after 1st April will be entitled to support under the scheme. You’ll be able to get:
-£5,000 off the cost and install of an air source heat pump
-£5,000 off the cost and install of a biomass boiler
-£6,000 off the cost and install of a ground source heat pump
The grant will only cover biomass boilers in rural locations and in properties that are not connected to the gas grid.
Your installer will apply for the grant on your behalf. The value of the grant will be discounted off the price you pay and will also now not incur any VAT – see below…
Find out more information HERE;
https://www.gov.uk/guidance/check-if-you-may-be-eligible-for-the-boiler-upgrade-scheme-from-april-2022
2. Solar Together – Group Buying Incentive – ongoing
All residents living in one of the participating nationwide UK council areas and who own their own house (or have permission from the landlord to install a solar PV system) can register for the Solar Together group-buying scheme. Small and medium-sized enterprises (non-domestic) and Commonhold Associations meeting this requirement can participate as well.
The bargaining power created by coming together as a group is the core principle behind Solar Together. This enhanced buying power allows the scheme to give you more competitive pricing than individual homeowners might get if entering the market alone. In previous years the scheme has secured savings of 20-35% against the average market price.
Solar installers that want to participate in Solar Together must go through a rigorous qualification process including offering an Insurance-backed guarantee for workmanship and products that meet the scheme’s quality criteria.
Find out more information HERE;
https://solartogether.co.uk/info/why-join-solar-together
3. Zero VAT on Installation of Energy-Saving Materials – from April 2022
This measure announced in the Chancellor’s Spring Statement, introduces a time-limited zero-rate of VAT for the installation of certain types of energy saving materials (ESMs). The zero-rate will be available for a period of 5 years and will then revert to the 5% reduced rate of VAT. The measure permanently removes the social policy conditions and the 60% test which businesses were required to consider determining the VAT liability of ESM installations prior to these changes and brings wind and water turbines into the scope of the relief in addition to heat pumps, insulation and solar products.
The measure is intended to incentivise the take-up of ESMs in line with the government’s net zero objectives with cost being a major obstacle and will positively impact individuals through lower prices charged by ESM installers – subject to the degree to which these businesses pass the VAT savings on to their customers of course! However the VAT zero rating fell short of cutting VAT on all home improvements e.g. windows and doors so check what is included with your supplier first and whether they are passing the full benefit on to you!
Find out more information HERE;
https://www.gov.uk/government/publications/changes-to-the-vat-treatment-of-the-installation-of-energy-saving-materials-in-in-great-britain/the-value-added-tax-installation-of-energy-saving-materials-order-2022#:~:text=A%20temporary%20zero%20rate%20will,rate%20from%201%20April%202027
4. Business Rates Relief on Renewable Energy Solutions – from April 2023
The government recognises specific concerns raised by ratepayers that businesses who install renewable energy for their own use can face significantly higher bills – while businesses producing renewable energy for use elsewhere get to benefit from the tools of the trade exemption.
The government will therefore introduce an exemption for eligible plant and machinery used in onsite renewable energy generation and storage, such as rooftop solar panels and battery storage used with renewables and electric vehicle charging points, from 2023 until 2035. A 100% relief will also be provided for eligible low-carbon heat networks that have their own rates bill.
Find out more information HERE;
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1028478/BRR_final.pdf
5. LoCASE – Low Carbon Across the South & East – Up to March 2023
The Low Carbon Across the South and East (LoCASE) programme is supported by the European Regional Development Fund to provide business support in the South and East of England – Kent, Essex, Sussex, Surrey, Hants. The aim is to help your business to become more competitive and profitable whilst protecting the environment and encouraging low carbon solutions aimed t delivering more sustainable growth.
LoCASE is being delivered from Spring 2016 until Spring 2023. The partnership consists of local authorities and universities across four Local Enterprise areas which are SELEP, Coast to Capital, Enterprise M3 and Solent. SMEs are able to seamlessly access the programme through multiple routes including local authority or Growth Hub referral, engagement at awareness raising events and peer to peer recommendation and direct via the LoCASE website – https://locase.co.uk/
Whether it be unlocking funding for an energy efficiency upgrade to your operations, to develop or improve your ‘green’ product/service proposition and marketing or simply assisting you to streamline or innovate, LoCASE is here to help support your sustainable business growth.
LoCASE provides grants for businesses from £1,000 up to £10,000 (40% of qualifying expenditure – with the remainder ‘matched’ by your business) as well as ‘net zero’ training workshops including the STEM –‘Steps to Environmental Management’ Blue, Silver, gold accreditation and fully funded events.
Find out more information HERE;
https://locase.co.uk/
6. C-Care Green Recovery Voucher Scheme – Kent Businesses
This £150K European funded framework provides up to £1.5K of FREE support towards energy efficiency measures, waste reduction interventions, sustainable transport solutions, biodiversity solutions and ‘Net Zero’ transition planning & feasibility studies for your business to include;
Design, supply & installation of energy efficiency measures including:
-Lighting, heating, hot water provision (including controls), insulation, glazing and other
positive improvements to energy use
-Machinery or equipment upgrades leading to improved process efficiency
Review, development and supply of waste reduction interventions including:
-Moving to sustainable packaging solutions, movement to ‘circular’ product/service design and/or working with supply chains to find solutions to waste challenges
Review, development and supply of sustainable transport solutions including:
-Sustainable travel planning and fleet management software
-Opportunities for working up local ‘eco clusters’ and buying groups to consolidate deliveries (such as first/last mile logistics)
-Supply of green transport for businesses (such as e-cargo/electric bikes, scooters etc) not covered by other initiatives
Design, supply & installation of biodiversity solutions including:
-Wildlife corridors, pollinator/wildflower gardens, green roofs/living walls, local tree-planting/natural capital initiatives
‘Net Zero’ transition planning including:
-Consultancy support in benchmarking, development of environmental management systems and/or staff/customer engagement activities
-Feasibility studies for transitioning to a more sustainable business solution
To register your interest in benefitting from this scheme, please email; lowcarbon@kent.gov.uk
7. SME Climate Hub – FREE to use Resource Library
Start your journey to net zero…
The SME Climate Hub is a global initiative that empowers small to medium sized companies to take climate action and build resilient businesses for the future.
-Learn about what’s at stake and your role in the climate crisis.
-Measure your own emissions and understand the tools available to help you reduce them using the FREE emissions calculator
-Make a simple, public commitment to cut your emissions by half by 2030
-Take action! Once you publicly commit, you will be able to unlock personalised resources and incentives
Find out more information HERE;
https://smeclimatehub.org/
8. Temporary tax reliefs on qualifying capital asset investments – from April 2021
This measure is designed to stimulate business investment. It does so by increasing the incentive to invest in plant and machinery by offering higher rates of relief than were previously available.
Capital allowances allow businesses to write off the costs of tangible capital assets, such as plant or machinery, against their taxable income. They take the place of commercial depreciation, which is not an allowable tax deduction.
This measure will temporarily introduce increased reliefs for expenditure on plant and machinery. For qualifying expenditures incurred from 1 April 2021 up to and including 31 March 2023, companies can claim in the period of investment:
-a super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances
-a first year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances
Find out more information HERE;
https://www.gov.uk/government/publications/new-temporary-tax-reliefs-on-qualifying-capital-asset-investments-from-1-april-2021/new-temporary-tax-reliefs-on-qualifying-capital-asset-investments-from-1-april-2021
This BLOG was published by Green Business Hub for information purposes using the most up to date information available at the time of writing.
