Renewable energy and energy efficiency strategies

The UK funding landscape has moved away from broad national grant schemes. Most funding is now delivered through a mix of targeted grants, regional programs and private finance.

The National Wealth Fund offers £27.8 billion for transformational UK projects in the form of loans, guarantees and equity for private sector and local government.

Major lenders now offer a suite of green finance products tailored to sustainability projects, from solar and battery storage to wider energy infrastructure, for example Lloyds Clean Growth Financing, Barclays Green Loans and NatWest Green Loans.  These are not standard loans, they are designed to reward sustainable investment, often with lower interest rates, reduced fees and incentives linked to environmental performance:

• https://www.lloydsbank.com/business/commercial-banking/clean-growth-financing-initiative.html
• Green loans for business | Business Banking | Barclays
• Green Loans and Green Asset Finance launched for businesses | NatWest Group

For those looking to reduce upfront costs, the rise of funded delivery models has been a game changer. Power Purchase Agreements (PPAs) allow businesses to install renewable energy without upfront costs, with a third party taking on the investment, installation and maintenance. In return, the business purchases the electricity generated at a fixed, typically discounted rate. The result is immediate savings, reduced exposure to volatile energy prices and a clear pathway to decarbonisation, without tying up capital.

Tax reliefs and capital allowances can also significantly improve green energy project economics. By allowing businesses to offset investment costs against taxable profits, these mechanisms shorten payback periods and enhance returns.

At the grant level, opportunities like the Boiler Upgrade scheme can offer up to £7,500 to upgrade gas or oil boilers to more efficient and lower carbon options: Apply for the Boiler Upgrade Scheme: Overview – GOV.UK.

The Warm Homes Plan will offer free upgrades for low income households and cheap loans via banks to other households to  install  solar PV, batteries, insulation and heat pumps.

Residential customers can also take advantage of  0% interest Green Additional Borrowing Mortgages offered by banks like NatWest to make energy efficiency improvements to homes: Green Mortgages | Energy Efficient Homes | NatWest

ESOS reporting applies to UK companies and UK operations of overseas groups with  250 or more employees or a turnover  over £44 million and a balance sheet over £38 million. Firms that fall into this category need to complete energy audits every four years.

SECR applies to UK companies listed on stock exchanges or those which have two of the following: 250 employees or more, a turnover of over £36 million or a  balance sheet over £18 million. These firms must add energy, carbon and efficiency disclosures to their annual report, report their greenhouse gas emissions, include an energy intensity metric and describe energy efficiency actions they are taking.

A Climate Action Plan sets out how a school will reduce emissions, adapt to climate risks and embed sustainability into operations and learning.

The UK Department for Education expected all schools to have a plan in place by 2025. It helps schools cut energy costs, meet policy expectations and demonstrate environmental leadership to students, parents and regulators.

Emissions are measured using frameworks such as the Greenhouse Gas Protocol. Scope 1 emissions include direct emissions (e.g. gas or other fuels), Scope 2 covers purchased electricity, and Scope 3 includes indirect emissions such as purchased goods, employee commuting, business travel, waste, use of sold products and end of life treatment of products.

Data is collected from utility bills, fuel use and operational activities, then converted into tonnes of CO2e emissions using emissions factors provided by the UK government and other sources.