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Top decarbonisation grants and funding schemes for UK organisations
The uncertainty over carbon emission reduction targets overshadowed COP27, but the clock continues to tick, so reaching net zero should be a top priority for organisations.
The upfront costs for decarbonisation initiatives can be hard to justify, especially in times of economic uncertainty. But the benefits of clean energy investments can be huge, providing greater energy security and cost savings, both in the short and long term.
As part of the UK government’s commitment to reaching net zero carbon by 2050, funding has been made available to UK organisations, to the tune of nearly £5 billion.
Decarbonisation grants and clean energy funding schemes can help alleviate some of the initial costs. However, not every decarbonisation grant or funding scheme can be accessed by every organisation, and some have clauses or need investment from organisations to meet their criteria.
The complexity shouldn’t put you off getting the support you need to achieve your net zero goals. The Crown Commercial Service has pulled together a comprehensive list of live decarbonisation grants and funding schemes.
We’ve highlighted the top two schemes administered by the Department for Business, Energy and Industrial Strategy (BEIS), to help you find the right approach for your organisation.
- Industrial Energy Transformation Fund (IETF)
The IETF helps industrial sites reduce their carbon emissions and move towards net zero. The funding is allocated through a competitive process. It supports the most transformative bids for investment in energy efficient and deep decarbonisation technologies.
This funding scheme allocates grants across three strands:
- Feasibility and engineering studies – to investigate identified energy efficiency and decarbonisation projects.
- Energy efficiency – to use technology to reduce industrial energy consumption.
- Deep decarbonisation – to use technology to achieve industrial emissions savings.
If your organisation operates in mining and quarrying, manufacturing, recovery and recycling of materials, or is a data centre, you could be eligible for Industrial Energy Transformation Funding.
The BEIS expects the assessment and award process, for applications, to take seven to eight months. Also, funded projects must be completed by 31 March 2025 so, before applying, consider how much time you can commit to the process.
2. Public Sector Decarbonisation Scheme (PSDS)
The PSDS provides grants to help public sector bodies implement energy efficiency measures and heat decarbonisation. The scheme is open to public sector organisations in England, and areas of reserved public services across the UK.
A third phase of this energy scheme, announced in 2021, is providing £1.425 billion in grant funding over the financial years 2022-2023 and 2024-2025. Its aim is to reduce the emissions of public sector buildings by 75%, by 2037.
Mitie has helped clients unlock the value of the PSDS. We successfully secured 16% of total government funding available in Phase 3a, and for the latest round Phase 3b we submitted £27m of applications for 14 clients.
The right support makes accessing decarbonisation schemes easier
Whether you’re looking for commercial solar panel grants or other decarbonisation funding, every scheme takes time to get the application right.
Also, finding out which schemes your organisation is eligible for and creating a successful application, can be a complicated process. But having a specialist partner like Mitie by your side makes the process much clearer and simpler.
Get the right support for your decarbonisation projects with Mitie
At Mitie, we have experience in winning industrial energy transformation funding, delivering decarbonisation projects, and building strategic partnerships with clients in all industries.
Our specialist team helped Essex County Council secure Phase 2 PSDS funding to install roof-mounted solar panels at 15 schools across the county. The panels will generate 700,000 kWh of energy every year – saving 180 tonnes of CO₂ and around £115,000 annually.
Get in touch today to find out what decarbonisation grants and funding schemes you could take advantage of. And start the journey to securing that funding, improving energy efficiency in your organisation, and meeting your net zero goals.
For the latest information on funding rounds visit:
Industrial Energy Transformation Fund (IETF)
Public Sector Decarbonisation Scheme (PSDS)
Crown Commercial Service – for a comprehensive list of live decarbonisation grants and funding schemes.
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