UK small businesses could receive £5,000 towards energy efficiency and sustainability improvements as part of a new funding scheme from EDF Small Business and Enterprise Nation.
For a small business, making the move towards lower energy use can make plenty of sense, but finding the money for new equipment, better insulation or renewable technology is often another matter.
A new initiative from EDF Small Business and Enterprise Nation is hoping to make that investment a little easier.
Through the Powering Local Businesses campaign, five UK small businesses will each receive a £5,000 sustainability grant, creating a total funding pot of £25,000. The programme is being delivered by Enterprise Nation and EDF Small Business, with support from NatWest and Square.
The money is intended to help businesses make practical improvements that can reduce their environmental impact while potentially bringing down their ongoing energy costs.
There is deliberately plenty of scope.
Funding could be used to upgrade older equipment to more energy-efficient alternatives, install solar panels or battery storage, improve insulation, replace heating systems, contribute towards a heat pump or support a move towards electric vehicles.
For hospitality and retail businesses, that might mean replacing ageing refrigeration or cooking equipment. For other businesses, it could help fund renewable energy infrastructure or improvements to the building itself.
EDF says it is looking for ideas from a wide variety of businesses, provided applicants can demonstrate how the investment would make their premises more sustainable.
The grants are open to UK-based small businesses with fewer than 50 employees.
Businesses must have been trading for at least 12 months and operate from a physical business premises, whether owned or rented. Applicants must also have a Companies House registration number or be registered as self-employed with proof of a UTR, as well as having a UK business bank account.
The business owner can apply directly, or another person can apply with the owner’s permission. Successful applicants must be able to explain how the funding will improve the sustainability of their business and be willing to share their story if requested.
Alongside the cash grants, five businesses will receive a dedicated workplace electric vehicle charger supplied by Pod, including standard installation.
Businesses can apply for the £5,000 grant, the EV charger, or both through the same application process.
There are some additional requirements for the chargers. Businesses need dedicated off-street parking for employees or visitors and, if the premises are rented, permission from the landlord. The site also needs to meet the requirements for standard installation.
A site management service subscription, currently listed at £9 per charger per month, is required to access the charger management controls.
The grants form part of EDF Small Business’s wider work supporting businesses looking to become more sustainable.
Its Powering Local Businesses campaign with Enterprise Nation brings together funding, advice and resources intended to help smaller firms take practical steps towards improving energy efficiency and reducing their environmental footprint.
For businesses already considering replacing inefficient equipment or investing in renewable technology, the £5,000 grant could provide a useful opportunity to bring those plans forward.
Applications opened on 21 July 2026 and close at midnight on 31 August 2026.
Applicants first complete an eligibility form before moving on to the full application, where they can explain how the funding would be used and the difference it could make to their business.
The £5,000 award is a grant rather than a loan, so it does not need to be repaid. Businesses should, however, be aware that the cash grant is taxable and successful applicants are responsible for any tax liability.
Businesses interested in applying can find the full eligibility criteria, terms and application form through Enterprise Nation.
Apply for the EDF Small Business sustainability grant
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