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Advisory + small capital grant · Updated 12 May 2026
Carbon Trust Green Business Fund — SME energy efficiency support
Carbon Trust Green Business Fund 2026 — energy assessments, advice and capital grants for SME decarbonisation including solar PV. Eligibility and process.
Overview
The Carbon Trust Green Business Fund is a series of partnership programmes between the Carbon Trust and energy companies, government agencies, or regional growth hubs. The branding and detailed criteria vary by partner, but the core offer is consistent: free expert energy advice for SMEs, a structured project specification process, and a small capital grant (typically £1,000-£5,000) to help fund the recommended energy efficiency or renewable energy project.
For commercial solar PV, the Green Business Fund is rarely the main funding route — the grant is too small for most solar projects to meaningfully change the economics. But the free audit and project specification are genuinely valuable, particularly for first-time renewable energy buyers who don't know what questions to ask installers. Most SMEs use the audit and specification, then combine the small grant with AIA or Full Expensing and SEG for the wider funding stack.
Key facts at a glance
| Service includes | Free energy audit, project specification, supplier introductions, small capital grant |
| Typical capital grant | £1,000 – £5,000 |
| Programme partners | Energy companies (typically big six); local growth hubs |
| Eligibility | UK SMEs (under 250 employees) |
| Geographic scope | UK-wide (varies by funding partner) |
| Programme status | Funded year-on-year — check Carbon Trust for current rounds |
Eligibility criteria
- UK SME — under 250 employees, under £43m turnover or £37m balance sheet.
- Commercial premises in the UK (most variants require a fixed business premises rather than home-based businesses).
- Demonstrable energy spend — typically £5,000+ per year on electricity or gas.
- Willing to commission an energy audit and act on recommendations.
- Subsidy control / state aid compliance.
How to apply
Step 1 — Find the current Carbon Trust Green Business programme.
Check the Carbon Trust website for the current round and partner.
Step 2 — Register your interest.
Online form, typically requesting business size, premises type, current energy spend, sector.
Step 3 — Receive the free energy audit.
A Carbon Trust accredited auditor visits your premises (or assesses remotely). They produce a 5-15 page audit report.
Step 4 — Receive the project specification.
For renewable energy projects, this is a detailed specification you can take to multiple installers to obtain comparable quotes.
Step 5 — Procurement and installation.
You select an installer (the Carbon Trust does not mandate which installer you use).
Step 6 — Submit grant claim.
On commissioning, submit invoice and proof of installation. Grant is paid by BACS, typically within 30 days.
Watch-outs and pitfalls
- Programmes are short-window. The Green Business Fund is funded in batches; some rounds run for as little as 3 months before the funded SME quota is met.
- Auditors can be cautious. The audit is conservative — expect savings projections to be 20-30% below the optimistic numbers an installer might quote.
- The capital grant is small relative to commercial solar capex. For a £40,000 solar project, a £4,000 grant is useful but not transformative. Combine with AIA / Full Expensing and regional growth hub grants for material funding.
- Carbon Trust is not an installer or financier. They provide advice and a small grant; you still need to arrange installation finance separately.
- Some programmes have been wound down or rebranded. Always check the current programme name before applying.
Stacking with other grants and reliefs
Most successful 2026 commercial solar projects use a combination of schemes — this is where independent advice earns its keep. Carbon Trust Green Business Fund — SME energy efficiency support typically combines well with:
- Annual Investment Allowance for business solar — Up to £1 million per year, 100% first-year deduction
- Smart Export Guarantee for businesses — 3p–15p per kWh exported (2026 fixed tariffs)
- Regional growth hub grants for business solar — £1,000 – £25,000 typical (match-funded, usually 40-60%)
Sources & further reading
Related schemes
Capital grant Tax relief Interest-free loan
Other relevant grants & reliefs
Annual Investment Allowance for business solar
AIA 2026 guide — how UK businesses claim 100% first-year tax relief on commercial solar PV up to £1m. Eligibility, calculation worked exampl...
Up to £1 million per year, 100% first-year deduction
Scotland SME Loan Scheme — interest-free finance for business solar
Scotland SME Loan Scheme 2026 — 0% loans up to £100k for Scottish SMEs installing solar PV. Cashback bonus for early adopters. Eligibility a...
Up to £100,000 at 0% (longer-term loans available)
FAQs
Frequently asked questions
What is Carbon Trust Green Business Fund — SME energy efficiency support?
The Carbon Trust Green Business Fund is a series of partnership programmes between the Carbon Trust and energy companies, government agencies, or regional growth hubs. The branding and detailed criteria vary by partner, but the core offer is consistent: free expert energy advice for SMEs, a structured project specification process, and a small capital grant (typically £1,000-£5,000) to help fund the recommended energy efficiency or renewable energy project.
Is the scheme open for applications in 2026?
As of May 2026, the scheme's funding status is: Rolling — programme funded annually. We re-check application windows monthly — if this is critical to your planning, request an eligibility check for the current programme status.
How much can a UK business get?
Typical award range: £1,000 – £5,000 typical capital grant (programme-dependent). The size of any individual award depends on project capex, sector eligibility, match funding available and the scheme's per-applicant cap.
Who administers the scheme?
Carbon Trust. Applications are submitted through the administrator's process — we link the relevant gov.uk and scheme pages at the bottom of this guide.
What are the biggest pitfalls applicants fall into?
Programmes are short-window. The Green Business Fund is funded in batches; some rounds run for as little as 3 months before the funded SME quota is met. Auditors can be cautious. The audit is conservative — expect savings projections to be 20-30% below the optimistic numbers an installer might quote. The capital grant is small relative to commercial solar capex. For a £40,000 solar project, a £4,000 grant is useful but not transformative. Combine with AIA / Full Expensing and regional growth hub grants for material funding.
Check if your business qualifies
Free 60-second eligibility check tells you whether Carbon Trust Green Business Fund — SME energy efficiency support applies — and which other schemes can stack.
Run free eligibility check Or call 0800 246 1132