Government Grants

Whilst Government Grants are coming to a close, being replaced by Feed in Tariffs and Renewable Heat Incentives, there are still plenty of opportunities to find help and support elsewhere.

There are still government funds available for thermal technologies but government has now made the last tranche of investment and once the pots have run dry they are not going to be replenished. The grant funding system for all renewable technologies will be replaced by FITs & RHIs by April 2011. The new system is intended to be supported by a green loan scheme to pay for the capital cost of investment to be covered by the income stream generated by the tariffs.

Newform Energy will update further once information has been released about these schemes.

Grants for Domestic Renewables Projects

The government's Low Carbon Buildings Programme will provide a grant of up to £400 for a new domestic solar heating system (in Scotland the grant rate is 30% of the system price up to a maximum of £4,000), but before being awarded a grant, a householder must demonstrate that energy is not being wasted in the home and that obvious measures have been taken such as installing loft insulation, cavity wall insulation, low energy light bulbs and room thermostat/timer controls for central heating. Visit our home energy saving section for ideas and suppliers of these technologies.

Local Grants

Many local grants are available. We recommend that you check with your local council or library for grant availability in your area.

Solar for London offers grants of up to £1500 for new domestic solar heating systems.

Affordable Energy offers homeowners and landlords grants for heating, insulation and solar heating.

The Scottish Community and Householder Renewables Initiative (SCHRI) provides funding for most household/community renewables technologies as well as funding for connections to the Lerwick District Heating Network. Information and application forms can be found at the Energy Savings Trust website.

Community Energy Scotland provide grant funding and advice on small-scale renewable energy to householders and community groups throughout the Highlands and Islands. It also holds a grant and investment fund to help communities develop larger-scale projects to generate and sell energy, bringing revenue to their community. CES also provides renewable energy advice to applicants to Big Lottery Fund Scotland's Growing Community Assets (GCA) funding scheme.

National Grants

The DTI's Low Carbon Buildings Programme provides grants for microgeneration technologies for householders, community organisations, schools, the public sector and businesses. The programme is managed by the Energy Saving Trust.

Launched on 1 April 2006, the programme was scheduled to run over three years, but has now been extended for householder applications to June 2010. The programme is UK-wide (apart from the Channel Islands and the Isle of Man) and will demonstrate how energy efficiency and microgeneration will work hand in hand to create low carbon buildings.

There are two streams of grants available:

  1. Stream 1 - these grants apply to smaller projects for home owners and community groups among others.
  2. Stream 2 - these grants apply to medium and large scale microgeneration projects and will available to public, not for profit and commercial organisations. Stream 2 grants were launched in September 2006.

The technologies covered by the Low Carbon Buildings Programmes are:

  • Solar photovoltaics.
  • Wind turbines.
  • Small hydro.
  • Solar thermal hot water.
  • Ground source heat pumps.
  • Water/air source heat pumps.
  • Bio-energy.
  • Renewable CHP.
  • Micro CHP (Combined heat and power).
  • Fuel cells.
  • Details of the programme and an online application system can be found at www.lowcarbonbuildings.org.uk.

Reconnect in Northern Ireland

The Reconnect programme is the grant programme for householders in Northern Ireland delivered by Action Renewables.

Reconnect opened for applications on 24th July 2006, and it aims to assist at least 4,000 private households to install up to two of the following technologies: solar hot water, photovoltaics (PV), wood fuelled boilers, wood pellet stoves, ground source heating, hydroelectric turbines or wind turbines. The total funding allocated to this programme, over two years, is £8m. See details of the Reconnect grants available and information on NI's PV Top-Up Scheme and Help with Hydro.

E.ON funding for Community and Charitable Projects

E.ON, the power and gas company, is offering grants of up to £30,000 for UK community energy projects that reduce carbon emissions. The grants could be used for everything from wind turbines on community hall roofs to extra insulation to cut down on heat loss.

Applications for funding will be reviewed three times a year. The website, which contains full details of how to apply for a grant, can be accessed at www.eon-uk.com/source.

Financial assistance for Commercial Renewables Projects

Enhanced Capital Allowance Scheme

Enhanced Capital Allowances (ECAs) enable a business to claim 100% first-year capital allowances on their spending on qualifying plant and machinery. There are three schemes for ECAs:

  • Energy-saving plant and machinery
  • Low carbon dioxide emission cars and natural gas and hydrogen refuelling infrastructure
  • Water conservation plant and machinery

Businesses can write off the whole of the capital cost of their investment in these technologies against their taxable profits of the period during which they make the investment. This can deliver a helpful cash flow boost and a shortened payback period.

Within the ECA Energy stream are Solar Heating Systems, CHP, Biomass boilers and Ground, Air and Water Source Heating Systems. See: www.eca.gov.uk/etl.

Details of the ECA Low Emission Transport stream can be found at www.hmrc.gov.uk/manuals/camanual/Index.htm.

Included in the ECA Water Conservation Stream are low water use showers and toilets and Rainwater Harvesting. Information can be found at: www.eca-water.gov.uk.

Interest Free Loans for Industry

Unsecured interest-free Energy-Efficiency loans of up to £100,000 (£200,000 in Northern Ireland) are available for SMEs through the Carbon Trust for when you replace or upgrade your existing equipment with a more energy-efficient version to fund projects such as lighting, boilers or insulation. Details of the scheme and an online application form can be found at: www.carbontrust.co.uk/energy/takingaction/loans.htm.

Supported with finance from the Scottish Executive and the East of Scotland European Partnership, www.thebep.org.uk. Loan Action Scotland allows SMEs to borrow between £5,000 and £100,000 interest-free and repayable up to 4 years to be used to help a business to reduce its energy consumption. Call 0131 561 6270.

Lottery Funding for Bio-Energy Projects

The BIG Lottery Fund hands out half of the good causes™ money from The National Lottery, some £630 million a year. Seven projects have each been awarded grants of up to £500,000 under the Bio-Energy Capital Grants Scheme (BECGS), part of the former New Opportunity Fund™s (NOF) Renewable Energy programme which is now administered by BIG. Call the BIG Advice Line on 0845 410 2030 or visit the BIG website.

Infrastructure Grants for Alternative Fuels

To encourage the development of a nationwide network of public fuelling stations, grants are available for the installation of refuelling or recharging equipment for alternative fuels. Qualifying fuels include hydrogen, E85 bioethanol, natural gas and biogas.

The grants generously provide for at least 30% of the cost of the equipment, construction, civil engineering and additional land if required. Extra grant is available for electric vehicle recharging points and any refuelling station owned by an SME or in certain remoter parts of the UK. More detail on this scheme is at the Energy Saving Trust.

Shell Springboard

Annually awards grants of up to £40,000 for UK businesses who submit the most compelling plans for a product or service which helps combat climate change. See www.shellspringboard.org.

Investment Funds

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