Business Energy

Funding to reduce business energy costs

1 Sept 2021

When it comes to reducing your business emissions and saving money on bills, there are several greener finance options that could help. As SMEs make up 25% of the UK’s emissions, it’s important for smaller business owners to make changes to their energy consumptions. Our blog explores some of the types of funding available to help reduce energy costs for good.

reducing your business energy costs

Keeping track of your monthly energy bills as a business owner can feel like an impossible task as they fluctuate every month. If there were some options available to permanently reduce your energy bills whilst helping keep emissions down, your business could be on to a winner. 

According to research by The Guardian, many businesses don’t recognise the benefits of reducing their energy bills but the extra money saved could be put to good use elsewhere. Whether you reinvest that extra money elsewhere, ease any cash flow issues or even cover a late invoice, saving money is always a great benefit for any business.

Types of funding to help reduce energy costs

So, how can you make sure your business can reduce its energy consumption whilst make these savings? By investing in making your business operations ‘greener’. There are now types of financial products that are available to help businesses become more energy-efficient and critically- save money at the same time.

We explore some of the types of funding available for businesses that can help reduce energy costs whilst saving you money over the long term. 

Government grants and energy efficiency loans

Depending on where you live, there are several kinds of government loans and grants available to businesses that are specifically designed to help businesses reduce their emissions and save money. Reaching net-zero is a collective UK goal driven by the government, which is why there are more Funding Options being made available.

From funding low carbon workspace, green business programmes and energy efficiency programmes, there are a few different ways the government can help businesses make greener changes to reduce energy costs and save money at the same time.

Whilst government loans are great for SMEs, they can be limited and will be dependent on where your business operates as to what is available to you.

Funding direct from energy suppliers

Another option is for businesses to go directly to their energy supplier as Ofgem have recently shared. Some suppliers in the UK are now able to offer certain financial support to small business owners to help reduce their energy consumptions. 

Depending on who your current supplier is and whether your business meets their criteria, this is another great option for SMEs looking for finance to help make their businesses green. Business owners looking to directly reduce their energy consumption and costs may have better results by reaching out directly to their energy supplier to understand what changes they need to make.

Applying for loans with green lenders

One of the most assured ways to secure funding is to go direct to a lender, and for businesses looking to ‘go green’, choosing a green lender is another great finance option. 

Green finance is a type of financial loan made available to businesses by a growing number of green lenders. It helps businesses make more sustainable changes by funding significant business changes to help reduce their carbon output. Green lenders may also have their own green commitments to reach carbon neutral when they lend any funding to businesses.

Green finance products are specifically designed to help businesses reduce their emissions and make environmentally-friendly changes when it comes to the day-to-day running of their business. Using funds to help reduce energy costs for a business is an investment that green lenders could support as it meets their green initiatives as well as the government’s own goals.

If you’re looking to explore your own Funding Options to help reduce your business energy costs, see what you could be eligible for today.

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