Top 6 UK Government Green Funds & Grants for SMEs

Summary:

• The UK’s drive to reach Net Zero by 2050 is a legally binding national goal.
• The net zero economy in the UK is supported by over 22,000 net zero businesses, of which 94% are SMEs (delivering £83 billion in value-added and nearly 1 million jobs in 2024 alone).
• Yet out of all SMEs in the UK, only 65% have a net zero plan, and just 50% measure their carbon footprint, which highlights the urgent need for government grants in the UK for SMEs in 2025 to bridge that gap.
• Demand for grants is high: 83% of businesses say they want to act, but need help, especially in financing greener choices.
• This guide shows the top 6 green government grants and green funds for UK SMEs currently available.

Green living in the UK has never been more important, or more supported, than it is in 2025.

With the government aiming for net zero emissions by 2050, there’s a growing landscape of financial help for small and medium-sized enterprises.

For anyone curious about green government grants for UK SMEs, this is a golden age of opportunity.

However, the landscape of green funds is complex, but at its heart is a simple offer: cash to help your business innovate and decarbonise. These green grants can empower your SME to:

• Develop sustainable new products.
• Invest in energy-saving equipment.
• Reduce your company’s carbon footprint.

But with so many options, which are worth your time? We’ve sifted through the noise to find the best green government grants for UK SMEs in 2025.

Note: If you’re wondering how sustainability can help your bottom line, read our guide on the financial benefits of environmentally friendly business.

How We Selected Our Top 6 Government Green Grants for UK SMEs

To ensure credibility, we used the GLB Trust Score. Here’s how it works:

We rate each grant on five factors, each with its own weight:

• Government Backing & Scale (30%) – How large is this government scheme?
• SME Accessibility (25%) – Is it genuinely easy for UK SMEs to apply?
• Green Impact (20%) – Does it create real, measurable environmental benefits?
• Longevity & Availability (15%) – Is this grant available often and in future years?
• Industry Diversity (10%) – Can businesses across different sectors use this grant?

Each factor is scored out of 5, then weighted. These add up to 100%.

We convert the result to a final GLB Trust Score out of 10, so you can see at a glance which green funds and government grants for UK SMEs stand out.

1. Plug-in Vehicle & Van Grants – GLB Trust Score: 9.6/10

The ‘Plug-In Vehicle & Van Grant’ subsidises the purchase of new electric cars and vans for SMEs—a discount is given at the dealer. It’s the easiest way to cut transport emissions and running costs for any small business.

• Department: Office for Zero Emission Vehicles (OZEV)
• Amount: 35% discount. Manufacturers apply; dealer grants at the point of sale. Up to £5,000 per large van; £2,500 for small vans.
• Founded: 2011 (renewed 2025)
• Application: Dealers/manufacturers apply on behalf of buyers
• Key dates: Ongoing to 2028
• Industry focus: SMEs with vehicles, any industry needing vans or trucks

2. EV Chargepoint Grants for Workplaces – GLB Trust Score: 9.2/10

The ‘EV Chargepoint Grant For Workplaces’ funds 75% of the cost to install EV chargers at business premises. Open to all UK SMEs, an easy online voucher system. Ideal for making workplaces EV-ready.

• Department: OZEV / Department for Transport (DfT)
• Amount: Grants cover 75% of the cost up to £350 per socket, for up to 40 sockets per applicant
• Founded: 2016
• Application: Online application, voucher system
• Key dates: Funding available until March 2026
• Industry focus: All SMEs with parking/fleets
  

3. Boiler Upgrade Scheme (BUS) – GLB Trust Score: 9.2/10

BUS makes it affordable to swap old boilers for low-carbon heat pumps and biomass systems. SMEs can cut energy bills and emissions with quick, voucher-based support.

• Department: Department for Energy Security and Net Zero (DESNZ)
• Amount: £5,000–£7,500 per installation
• Founded: 2022
• Application: Via accredited installer
• Key dates: Open to 2028
• Industry focus: Hospitality, retail, office, agriculture

4. Scotland SME Loan & Cashback Scheme – GLB Trust Score: 9.2/10

The ‘Scotland SME Loan & Cashback Scheme’ offers Interest-free loans plus cashback for energy upgrades, and is open to all Scottish SMEs. Easy to access, no security needed, covers tech from heat pumps to lighting.

• Department: Scottish Govt / Business Energy Scotland
• Amount: Interest‑free loans up to £100,000; Cashback grant up to £30,000, typically ~30% of project cost
• Founded: 2019 (cashback element)
• Application: Apply via Business Energy Scotland
• Key dates: No deadline, ongoing
• Industry focus: All sectors (Scotland only)

5. Wales Green Business Loan Scheme – GLB Trust Score: 9.0/10

The Wales Green Business Loan Scheme offers discounted loans to Welsh SMEs for any decarbonisation investment. Flexible, low-interest, with expert advice bundled in.

• Department: Development Bank of Wales
• Amount: Loans from £1,000 to £1.5 million
• Founded: 2022
• Application: Apply any time, flexible review
• Key dates: Ongoing
• Industry focus: All sectors (Wales only)

6. NI Sustainable Energy Programme (NISEP) – GLB Trust Score: 8/10

The NI Sustainable Energy Programme delivers part-funded upgrades for energy saving in NI businesses. Schemes run via utilities—grants for lighting, heating, more.

• Department: Dept for Economy (NI), Utility Regulator
• Amount: £500–£5,000 per business
• Founded: 2008
• Application: Apply to specific utility schemes
• Key dates: Open each year, 2025–2027
• Industry focus: All sectors in Northern Ireland

With the right support and funding, your SME can be part of the UK’s net-zero future.

FAQs

1. What are the main types of government grants in the UK that SMEs can apply for in 2025?

The main government grants in the UK for SMEs in 2025 include direct green grants for energy-saving upgrades and low-carbon heating support like the Boiler Upgrade Scheme. There are also regional green funds and business-specific grants, which can be found through the GOV.UK Find a Grant service.

2. How can I find out which green grants are open to my business right now?

You can check live government grants in the UK for SMEs in 2025 by visiting the official Find a Grant website (gov.uk), which lists all current schemes. Many green funds are also promoted by local growth hubs and business climate advice services.

3. Who is eligible for most government green grants in the UK?

Most government grants in the UK for SMEs in 2025 are open to businesses with under 250 employees and under £50 million turnover. Some green grants target certain sectors or regions, but generally, any UK-registered SME with a plan to cut emissions or boost sustainability can apply.

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