SME Low Carbon Grant Programme

The Offer

Phase 1: Energy assessments and energy reports 

• The energy assessments will assess the buildings and behaviours, which will produce an energy report highlighting no cost, low cost and capital cost energy efficiency recommendations.

• The total available budget for this fund is £25,000

• The energy assessments are for standard buildings and behaviour – not processes and complex machinery

• Applications will close once the budget is fully committed.

• Energy assessments will be subject to eligibility and completeness of application. However, priority will be given to applicants that are looking to proceed to phase 2 and eligible where possible to proceed to installing eligible capital measures. 

• Due to limited funding, buildings of a significant size may require a level of assessment that would exceed or disproportionately utilise the available budget. Such applications may therefore be deemed ineligible. Assessments for very large sites will be restricted and remain at the discretion of the programme officer. 

Phase 2: Capital for installation

• Capital funding will be accessible in a second phase, you must have had an energy assessment and report in the first phase, then subject to further eligibility evidence and a grading panel review. 

• The total indicative capital budget for this fund is £70,000 (and subject to change).

• Each grant award will range from £1,000 to £20,000 and will cover up to 50% of the total eligible project costs.

 Due to the short programme timescales:

• Funded projects must be capable of delivery without requiring a full regulated procurement process. Installations must therefore fall below the relevant public procurement thresholds and be capable of being procured through proportionate and competitive quotation processes. 
• Individual installation measures must be under the procurement threshold of £25,000 

Eligibility

Phase 1: To apply for an energy assessment:  

• Be classified as a small or medium-sized enterprise (SME) (less than 250 employees and an annual turnover under £50 million) 

• Be operating within the Vale of Glamorgan – registered business address in VOG 

• Own the freehold or hold a lease with a seven year minimum period remaining after the grant payment date. You will need to secure your landlords written consent for the proposed works 

• Any business where there are ethical or reputational considerations will not be deemed eligible. For example: gambling, weapons manufacture, unsustainable wood, money lending, adult entertainment, tobacco products or cannabis products not authorised as medicines, debt factoring, hire purchase financing, pyramid schemes, projects focused on the promotion of political or religious views or illegal or immoral activities.

• Priority will be given to businesses that are able and willing to progress to Phase 2. However, subject to overall uptake and available budget, SMEs may still be offered an energy assessment even if they do not intend to proceed beyond the initial stage.

• This will provide a detailed energy report to help inform future improvements and investment decisions. 

• The site must not be a domestic address 

Phase 2: To be able to apply and be considered for capital funding: 

• Have applied for the energy assessment in phase 1 and been successful. 

• Have had recommendations in their energy report that meet the eligible capital expenditure criteria. 

• Do not require a structural survey if applicable

• Be financially solvent and able to demonstrate their ability to provide match funding and upfront all costs 

• Be within their funding subsidy threshold

• Not have already commenced any proposed recommendations prior to any capital grant offers.

• Be able to complete installation by the deadline of 26th February 2027

• Complete a declaration and provide evidence of planning permissions and DNO status where applicable. (Appendix A)

Eligible Capital Expenditure

The grant will apply to capital expenditure within an approved project and can include: 

• Solar photovoltaic (PV) systems

• Battery linked to solar panels

• Air Source Heat Pump (air to water air to air)

• Ground Source Heat Pump

• Associated installation and electrical works directly related to the eligible technologies at Vale of Glamorgan County Council discretion

• Eligibility condition: The grant supports decarbonisation, not income generation. Systems must be sized primarily to meet the on-site electricity demand of the applicant business. Installations designed principally for electricity export are not eligible

• Export clause: Incidental export of surplus electricity is permitted. However, grant funding must not be used to support projects where electricity export constitutes a significant revenue stream.

• EV Chargers may be permitted depending on the volume of applications and budget available

How to apply

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