Business Energy Costs: Schemes and Grants

business energy costings

Running a business involves keeping a keen eye on expenses, and one of the significant overheads for many is energy costs. With the right information and tools on renewable energy schemes, businesses can spend wisely, save money and support the environment.

In this blog post, we’ll explore various schemes and grants designed to help your business manage your energy costs, focusing mainly on the potential of solar energy solutions.

What are business energy costs?

Business energy costs encompass the wide range of expenses tied to the electricity and gas necessary for the day-to-day operations of your business.

These costs cover:

  • Lighting and heating your workspace
  • Powering essential machinery and equipment

Electricity bills and gas expenses are significant components of your overall energy costs.

These are influenced by various factors, including the electricity prices set by your electricity supplier, the tariffs applicable to your energy contracts, and the wholesale energy costs, which fluctuate based on market dynamics.

What affects the cost of business energy?

Several factors can influence your energy expenses, such as energy consumption patterns, the size of your business, and the type of energy contract you have. Energy prices vary by supplier and can be affected by global energy market trends.

The cost of energy is also affected by energy demand and supply, with prices typically rising during periods of high demand or when supply disruptions occur.

For non-domestic energy customers, managing energy costs involves complex energy contracts and dealing with energy suppliers or energy brokers to secure the best possible rates.

The choice between fixed and variable tariffs can significantly impact your energy bills, with variable contracts often subject to the volatility of wholesale prices.

Business schemes for energy costs

The landscape of business energy costs is complex, with multiple factors influencing how much businesses pay for their energy usage.

Government support schemes, loan schemes, and grants can offer financial assistance or incentives to businesses undertaking projects to improve their energy efficiency or to switch to renewable energy sources like solar power.

Energy Bills Discount Scheme

A notable initiative designed for business customers is the Energy Bills Discount Scheme. This scheme substantially discounts electricity and gas bills for businesses in eligible sectors.

This scheme aims to support businesses during periods of high wholesale energy costs by allowing them to maintain operations without the added stress of expensive energy tariffs.

The maximum discount provided under this scheme can significantly reduce monthly energy bills for eligible non-domestic customers.

Energy Efficiency Grants

Various grants are available for businesses looking to reduce their energy consumption and improve efficiency.

These grants support projects that aim to lower energy usage and decrease carbon emissions. From upgrading to energy-efficient lighting systems to installing modern, efficient heating systems, these grants can cover a portion of the costs involved in making energy-saving upgrades.

By reducing energy demand, businesses can achieve long-term savings on their energy bills and contribute positively to environmental conservation efforts.

Renewable Energy Incentives

Another area of focus is the promotion of renewable energy adoption among businesses.

Renewable energy schemes provide incentives and financial support for businesses willing to invest in solar panels, wind turbines, or other renewable energy installations. These initiatives help companies reduce their energy costs over time whilst reducing carbon emissions.

Through these schemes, businesses can significantly impact their energy sustainability and independence, moving towards more stable and predictable energy expenses.

Sector-Specific Support Schemes

Some schemes even offer tailored support specifically for public sector organisations, energy-intensive industries, and small and medium-sized enterprises (SMEs).

These sector-specific schemes understand the unique energy issues these entities face, offering support that ranges from specialised grants to advisory services aimed at helping them optimise their energy usage, reduce costs, and improve their overall energy efficiency.

Benefits of energy schemes and grants

Financial Incentives and Savings

One of the most appealing aspects of energy schemes and grants is the potential for significant financial savings.

  • Direct discounts on energy bills
  • Subsidies for the installation of energy-efficient equipment
  • Grants that cover a portion of the costs associated with transitioning to renewable energy sources.

For instance, the Energy Bills Discount Scheme offers eligible non-domestic customers a maximum discount, reducing high energy costs. By reducing these expenses, businesses can free up capital for other operational needs or


Sustainability and Environmental Impact

Businesses can reduce their carbon emissions and environmental impact through various energy schemes. In today’s market, eco-conscious consumers and clients often favour companies with firm environmental commitments, often leading to increased loyalty and a competitive edge in your market.

Reducing energy consumption and adopting green energy sources can be a key part of a company’s strategy to build its reputation as a responsible and forward-thinking organisation.

Energy Security and Independence

By generating your own energy, you can lessen your reliance on external electricity suppliers and the volatility of the energy market.

This independence from variable tariffs and wholesale energy costs ensures more predictable energy expenses, shielding businesses like yours from sudden increases in energy prices and securing long-term financial planning and stability.

How to Apply for Energy Efficiency Grants

Let’s take a look at how to apply for these various schemes and grants:

Assess Current Energy Usage

Review your business’s current energy usage, including electricity bills, gas consumption, and significant energy-consuming operations. Tools and services from energy companies or specialised energy brokers can provide insights into your energy patterns.

Identify Potential Improvements

Look for opportunities to enhance energy efficiency within your operations. This could involve upgrading to LED lighting, installing more efficient heating systems, or implementing energy management systems to better control energy consumption.

The aim is to pinpoint areas where improvements can significantly reduce energy usage and carbon emissions.

Prepare a Detailed Application

Most grant applications require an in-depth submission of your:

  • Current energy consumption
  • Identified points of improvement
  • Projected energy savings.

Gather several quotes for the work

You will likely need to provide quotes from contractors or suppliers for the energy-efficient upgrades you plan to undertake. These quotes should detail the costs and expected impact on your business’s energy consumption.

Try to find suppliers who are familiar with business energy efficiency grants and their application process.

Demonstrate Expected Energy Savings

Use the information gathered to calculate the expected reduction in energy usage and how this translates into cost savings. This may involve using software to model energy consumption or consulting with experts.

Submit the Application

Once all the necessary documentation is prepared, submit your application according to the grant programme’s guidelines. Ensure all eligibility criteria are met and your submission is complete to avoid delays in processing.

Discover solar financing with the help of Path Energy

Considering all the options, the world of solar financing can be overwhelming. But with Path Energy, you’ll always have an experienced team with in-depth knowledge to help.

We understand your energy demands and business goals to recommend the perfect finance. Whether tax relief, grants, or asset financing, we help you make the best decision for your business.

Our proven track record of securing grants from various local authorities across the UK sets us apart from the rest. Uncover the potential of free solar panels for your business.

By partnering with pension funds and financiers, we help you save up to 60% on daytime electricity costs while contributing to a sustainable future.

10 April 2024
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