With climate concerns climbing up the business agenda and consumers increasingly favouring sustainable companies, going green is no longer just a nice-to-have, it’s a smart financial move.
And the great thing is, you don’t have to do it alone. There’s a growing range of grants, tax incentives and cost-saving strategies available for UK businesses looking to reduce their carbon footprint. In this post, we’ll break down what’s out there and how green accounting can help you claim your share while boosting your business’s value.
Why Go Green (Besides Saving the Planet)?
✔️ Cost savings through lower energy bills and operational efficiency
✔️ Access to government funding and green loans
✔️ Improved brand reputation – customers and investors favour sustainability
✔️ Futureproofing your business against upcoming environmental regulations
Grants and Incentives for UK Businesses Going Green
Let’s look at what’s available as of 2025:
1. Energy Efficiency Grants
Many local councils and regional bodies offer low-carbon funding for businesses upgrading their premises. Common support includes:
- LED lighting upgrades
- Solar panel installation
- Improved insulation and heating systems.
Check your Local Enterprise Partnership (LEP) for tailored schemes in your area.
2. The Green Heat Network Fund (GHNF)
Aimed at supporting heat network projects that use low-carbon technologies, the GHNF provides capital support for feasibility and development.
Especially relevant for developers, property companies, and larger commercial sites.
3. Smart Export Guarantee (SEG)
If your business generates renewable electricity (e.g. via solar panels), you can sell surplus power back to the grid, earning a regular income.
This is not a grant, but a government-mandated payment scheme with real ROI potential.
4. R&D Tax Credits for Green Innovation
Developing greener processes, materials, or technologies? You could qualify for R&D tax relief, even if your project wasn’t successful.
We help clients identify eligible spend on eco-innovation all the time, it’s often overlooked!
5. EV Grants for Business Fleets
Switching to electric vehicles? The Plug-in Grant supports commercial vehicle purchases and you may be eligible for Workplace Charging Scheme funding too.
Lower Benefit-in-Kind (BiK) tax rates also make EVs attractive for directors and employees.
Green Accounting: Your Secret Sustainability Weapon
Green accounting goes beyond your typical financial reporting, it tracks environmental costs and savings to help you make better decisions and access more funding.
Here’s what it includes:
- Identifying tax-deductible environmental upgrades
- Tracking carbon usage and reductions
- Reporting on ESG (Environmental, Social, Governance) performance
- Linking sustainability to profit margins.
Bonus: Being able to show robust green credentials can open doors to investors, tenders, and clients who require ESG transparency.
How an Accountant Can Help
As accountants, we can:
- Identify and apply for relevant green grants
- Incorporate environmental metrics into your regular reports
- Ensure green investments are capitalised and depreciated correctly
- Support R&D tax claims linked to sustainability
- Strategically time investments for maximum tax efficiency
Going green is more than good PR, it’s good business and with the financial support currently available, there’s never been a better time to start.
Whether you’re planning a small upgrade or a full sustainability strategy, get in touch to find out how we can help you fund it, claim it and track it by calling us on 01775 529345 or alternatively drop us a line at office@cbsltd.org. Expert and friendly advice is just a message away!
Leave a Reply