Financing local energy


The Energy Hub aims to provide here a comprehensive list of the various sources of funding aimed at local authorities and businesses who want to deliver local energy projects in England. This is latest available published information. Please confirm any details directly with the fund managers.

If you require further advice or if you know of any additional sources that we can share, please contact us You should also look at the Investment page of this website for a fuller understanding of the range of financing opportunities available.


Eastern New Energy Project - SME Energy Efficiency Grant Scheme

The Eastern New Energy project aims to build a stronger local energy and low carbon economy in the East of England. One of the project’s initiatives is a capital grant scheme to help SMEs in Cambridgeshire, Norfolk, Suffolk and Hertfordshire improve their energy efficiency and reduce carbon emissions. Support is expected to be available until late 2021. The grant scheme is administered on behalf of the project by the Peterborough Environment City Trust.

Apply for SME energy efficiency funding

Bee Anglia

The Business Energy Efficiency (BEE) Anglia programme provides free support to small and medium sized enterprises (SMEs) in Suffolk and Norfolk to help them become more energy efficient. The BEE Anglia experts can provide independent advice on cost and carbon saving opportunities for your business. BEE Anglia also has a pot of grant funding that supports businesses to implement energy efficiency measures. Supported by the European Regional Development Fund.

Find out more

Low Carbon Across the South East (LoCASE)

The Low Carbon Across the South East (LoCASE) programme is supported by the European Regional Development Fund. LoCASE supports SMEs to develop their business and reduce their carbon impact. This includes grant funding towards energy efficiency measures. The programme is available across the South East Local Enterprise Partnership (SELEP) area which includes East Sussex, Essex and Kent. A follow-on programme has recently gained government approval, which means that a further tranche of grant funding will soon become available and is expected to continue until Spring 2023.

Register your interest now

SME Low Carbon Workspaces

Low Carbon Workspaces is a programme supported by the European Regional Development Fund to help SMEs cut carbon emissions, save money and minimise waste at commercial premises. The programme provides match-funded grants of £1k-£5k for SME projects that cut carbon, and is aimed at businesses located in Buckinghamshire, Berkshire and Hertfordshire. The Low Carbon Workspaces team provides free support to help you identify opportunities, calculate potential carbon savings and prepare your application.

Find out more and apply

Capacity Building

EU City Facility Fund

UK local authorities are eligible to bid for the EU City Facility Fund, which supports the development of sustainable energy projects with grants of €60,000. The Fund is intended to enhance the financial and legal capacity of local authorities, to develop their energy and climate strategies into investable projects, and to enable the aggregation of smaller energy projects to attract financial investment. The next call for applications is anticipated to run March – April 2021, with subsequent application rounds expected.

Find out more

Community Energy

Rural Community Energy Fund

The Rural Community Energy Fund (RCEF) is a £10m programme which supports rural communities in England to develop renewable energy projects that provide economic and social benefits to their community. Eligible projects can apply for grants of up to £40k for feasibility studies and up to £100k to cover more advanced development work such as the legal, planning and business case elements. RCEF is jointly funded by the Department for Business, Energy & Industrial Strategy and the Department for Environment, Food and Rural Affairs. The Fund is managed by the Greater South East Energy Hub.

More information and how to apply

Community Energy England

Community Energy England is a not-for-profit organisation that represents and supports the community energy sector. A comprehensive list of community energy funding and finance opportunities can be found on the Community Energy England website.

How to obtain funding

Centre for Sustainable Energy

The Centre for Sustainable Energy is an independent national charity that shares its knowledge and experience to help people change the way they think and act on energy.  A significant part of the organisation’s work is to support community groups who want to do something about climate change, energy or sustainability. Its website has information and resources dedicated to supporting these groups.

Funding Information

London Community Energy Fund

Community energy projects bring social, economic and environment benefits to London. The London Community Energy Fund provides much-needed support to get community energy projects up and running. Community energy groups that are starting new projects can also get practical support from Community Energy London, which provides advice and also networking opportunities for groups to share their experiences.

Applications for the fourth round of the London Community Energy Fund are open. The Mayor wants to increase the pace of community energy development to boost the economy and benefit hard-hit communities following the pandemic, so for this fourth round, for the first time, in addition to supporting project development work, the Fund will also provide capital grants. The deadline for applications is 11 January 2021.

More information and how to apply

Distributed Generation

Local Energy Accelerator Programme (London)

A London-based £6 million grant-funding programme, supported by the European Regional Development Fund and the Greater London Authority. The programme will provide public and private-sector organisations with expertise and support to help them develop clean, locally-generated energy projects. The programme will provide a framework of suppliers, and a dedicated Programme Delivery Unit to give free project management support to all organisations receiving funded expertise.

Find out more and apply

Electric vehicles

On-street Residential Chargepoint Scheme guidance for local authorities

Local authorities can apply for funding to help with the costs of procurement and installation of on-street charging points for residential use. This guidance explains who can apply for the funding, how much funding is available, and sets out the application process and timetable. Funded by the Office for Zero Emission Vehicles (formerly the Office for Low Emission Vehicles).

Find out more

Electric Vehicle Workplace Charging Scheme

The Workplace Charging Scheme is a voucher-based scheme that provides support towards the up-front costs of the purchase and installation of electric vehicle chargepoints. The contribution is limited to the 75% of purchase and installation costs, up to a maximum of £350 for each socket, up to a maximum of 40 across all sites for each applicant. Guidance is provided for applicants (businesses, charities and public sector organisations), electric vehicle chargepoint installers and manufacturers of electric vehicle chargepoint equipment. Funded by the Office for Zero Emission Vehicles (formerly the Office for Low Emission Vehicles).

Find out more

Energy Efficiency

Public Sector Decarbonisation Scheme

This £1 billion government scheme provides grants for up to 100% of the capital costs of energy efficiency and heat decarbonisation projects for public sector (non-domestic) buildings. The final application deadline is 11 January 2021. Projects should be completed by 31 March 2021 if possible, or 30 September 2021 latest if not. The Energy Hub is supporting eligible organisations in the region to be bid-ready to access this funding. If you need assistance, get in touch with us The scheme itself is administered by Salix Finance. Click the button below for full details.

See full details


Heat Networks Investment Project

The Heat Networks Investment Project (HNIP) is a government funding programme that aims to increase the number of heat networks being built, deliver carbon savings and help create the conditions necessary for a sustainable heat network market to develop. HNIP will provide £320 million of capital funding to gap fund heat network projects in England and Wales. The scheme is open to the public, private and third sectors. Funded by the Department for Business, Energy and Industrial Strategy.

Find out more

Non-Domestic Renewable Heat Incentive (NDRHI)

The Non-Domestic Renewable Heat Incentive (NDRHI) is a government environmental programme that provides financial incentives to increase the uptake of renewable heat by businesses, the public sector and non-profit organisations. Eligible installations receive quarterly payments over 20 years based on the amount of heat generated. Funded by the Department for Business, Energy and Industrial Strategy.

Find out more

Green Heat Network Fund Transition Scheme

The Government’s Heat Networks Investment Project (HNIP) concludes in March 2022, and will be followed by the launch of the Green Heat Network Fund in April 2022. The Green Heat Network Fund is a capital grant fund, open to the public and private sector in England, which will support the development of low and zero carbon heat networks, including cooling.

To help projects to commercialise in readiness for the Green Heat Network Fund, the Department for Business, Energy and Industrial Strategy is providing a transitional funding scheme of £10 million. The first funding round opens 5 July 2021 and closes 12 August 2021. Download further information about the scheme here. A workshop to enable interested applicants to find out more about the scheme will take place 21 June 2021. To register your interest in the workshop, or for further information please contact the Green Heat Network Fund Team.

Contact the Green Heat Network Fund Team


Industrial Strategy Challenge Fund

The government’s Industrial Strategy Challenge Fund provides funding and support to UK businesses and researchers. Its aim is to strengthen UK science and business innovation to take on the biggest challenges that society and industry face today.

Challenges identified by the Fund are aligned with the four Grand Challenges set out in the government’s Industrial Strategy. One of the four is Clean Growth – economic development through the deployment of low carbon technologies and the efficient use of resources. The Fund, which is being delivered by UK Research and Innovation, is part of the government’s £4.7 billion increase in research and development over four years.

Find out more

MCS Charitable Foundation

The foundation funds projects that accelerate the adoption of renewable energy and low carbon technologies. Projects must have a national reach, or develop an innovative approach that can be replicated, adapted or scaled up. Grants are usually £5,000 – £50,000, or up to £100,000 for exceptional projects. Applications are accepted from public organisations, not-for-profit companies and charities. Forthcoming submission deadlines are 25 January 2021 and 19 July 2021.

Find out more

Public sector

Salix Finance

Salix Finance provides interest-free Government funding to the public sector to improve energy efficiency, reduce carbon emissions and lower energy bills. Salix can fund energy efficiency projects across local authority estates, with over 100 energy efficiency technologies supported. The organisation has invested over £255 million in energy efficiency projects since 2004, saving English councils over £56 million per annum. Salix is funded by the Department for Business, Energy and Industrial Strategy.

Find out more

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