Funding and investment


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 know of any additional sources, 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.

Energy Efficiency

Green Homes Grant, Local Authority Delivery, Phase 1B

A second round of the government’s Green Homes Grant, Local Authority Delivery, Phase 1B, is now available. Applications for LAD Phase 1B can be submitted until 4th December 2020, with a project delivery deadline of September 2021. Applications are to be made direct to BEIS. Registered social landlords are eligible for funding as part of local authority consortia. The grant aims to improve the energy efficiency of low income homes. If you are a registered social landlord seeking funding and need a contact within your local authority, get in touch with us

How to apply

Green Homes Grant Voucher Scheme - Voucher Blocks for Local Authorities, Housing Associations & Private Landlords

Local authorities, housing associations and private landlords can apply for blocks of the government’s Green Homes Grant Voucher Scheme. If you are a local authority that did not apply to the Local Authority Phase 1 scheme or if you were unsuccessful, you can potentially secure up to £5k per property towards works on your housing. Works must be completed by end March 2021. The scheme supports energy efficiency improvements for homes such as insulation or installation of low carbon heating.

Guidance to be posted soon

Social Housing Decarbonisation Fund

A £50 million government fund which aims to encourage innovative approaches to retrofitting social housing at scale. Maximum grant award c. £13.5 million per project. Applications are accepted from local authorities or local authority-led consortia (which can include housing associations or arm’s length management associations). Register interest by 16 October 2020. Application deadline 12 November 2020. Projects to start by December 2020 and complete by December 2021. If you are a housing association or arm’s length management organisation seeking funding and need a contact within your local authority, get in touch with us

Application details

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. There are five application deadlines: 12 & 26 October 2020, 9 & 23rd November 2020, and 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.

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Public Sector Low Carbon Skills Fund

The aim of this government Fund is to help public sector organisations to engage specialist and expert advice, to identify and develop energy efficiency and low carbon heat upgrade projects for non-domestic buildings, and then prepare robust and effective applications for the Public Sector Decarbonisation Scheme (see left). Applications will be reviewed weekly and applicants notified of the funding decision within five working days. Final deadline for applications 4 December 2020. The Fund is administered by Salix Finance.

See full details

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 deadline for applications is 2 October 2020, with subsequent application rounds expected.

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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.

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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.

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Industrial Heat Recovery Support Programme

The Industrial Heat Recovery Support (IHRS) programme is designed to encourage and support investment in heat recovery technologies. It helps businesses of any size to identify ways to recover and reuse heat that would otherwise be wasted, thereby lowering fuel costs and cutting emissions. The programme has been extended until March 2022. Two additional assessment windows are now available in 2020 with deadlines at the end of January and July. Third parties can now apply as main applicants. Funded by the Department for Business, Energy and Industrial Strategy (BEIS).

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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 Low Emission Vehicles.

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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 Low Emission Vehicles.

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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.

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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.

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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. LoCASE has a new tranche of funding to September 2020. Click the button below to register your interest, or see more information here.

Register here


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.

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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. Submission deadlines for this year are 27 July 2020 and 19 October 2020.

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