Small and medium-sized enterprises (SMEs) in the UK face ever-increasing pressure from rising energy bills and the need to look for sustainable alternatives. According to research by Cadent Gas & Energy Saving Trust, 70% of SMEs spend over 10% of their monthly outgoings on energy. However, SME businesses often feel left out of advice and don’t always know where to turn to for independent advice. Fortunately, there are several government-initiatives designed to help SMEs reduce energy use, cut costs and invest in low-carbon equipment. Below we explore some of the key schemes, what they offer, and how your business might benefit.
Workplace Charging Scheme (WCS)
One of the major schemes aimed at supporting SMEs is the Workplace Charging Scheme (WCS).
Eligible organisations in England, Wales, Scotland and Northen Ireland (businesses, charities, public sector) can receive up to £350 per socket, up to 40 sockets, for installing electric vehicle (EV) charge-points at business premises.
How it helps SMEs
- If your business uses electric vehicles (or staff commute), installing EV-charging infrastructure can promote more efficient vehicle usage, reduce fuel/energy costs, and potentially shift some energy consumption timing.
- While it’s primarily focused on transport/vehicle infrastructure, it forms part of a broader picture of reducing energy usage across the business.
Boiler Upgrade Scheme (BUS)
Another key initiative is the Boiler Upgrade Scheme (BUS) which supports replacing fossil-fuel heating systems with low-carbon alternatives.
- Grants of £7,500 for air-source or ground-source heat pumps, and £5,000 for biomass boilers.
- Applicable to non-domestic buildings within certain capacity limits (non-domestic building capacity under 45kWth).
How it helps SMEs
- If your business owns or leases a building and is using gas/oil/electric heating, shifting to a heat-pump or biomass boiler can significantly reduce energy costs over the long term, especially as fossil fuel prices rise.
- The upfront cost barrier is lowered by the grant, making investment more viable.
Insulation grants
If you’re looking to maximise energy efficiency on site, there are several grants available to help. If you own your business premises you may qualify, otherwise you can speak to the landlord for extra support.
To explore more on this, visit the UK Business Climate Hub.
Getting started with government initiatives
Given the various options, here are some steps for SMEs to take.
Match your needs to the right support:
Transport/charging infrastructure = WCS
Heating/low-carbon equipment = BUS or other grants
Equipment/process upgrades/insulation = Grants, tax reliefs
Building upgrades/low-carbon heat networks = Business rates relief + grants
- Check eligibility carefully: each scheme has eligibility criteria (business size, building ownership, equipment type, region, installation partner) – missing a requirement may disqualify you.
- Consider the full cost/benefit: the upfront investment + grant + tax relief + operational savings = overall return. Use conservative estimates for energy price savings.
- Act now: many grants operate on a first-come basis, have limited budgets or closure dates. Don’t delay if you have a good project.
For UK SMEs, reducing energy costs is not just about negotiating a better energy tariff it’s about investing smarter in energy-efficient equipment, low-carbon heating, EV infrastructure, monitoring and behavioural change.
By combining a clear audit of your current energy use, identifying high-impact savings opportunities, and leveraging these government initiatives, SMEs can reduce energy costs, improve resilience against price rises, and contribute to a more sustainable future.
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