| Route | Who it is for | What it gives | Realistic? |
|---|---|---|---|
| Full expensing / AIA | Companies and businesses investing in qualifying plant | Up-front deduction against taxable profit | Yes – the main route |
| Salix Finance | Public sector – schools, NHS, local authorities, universities | Grant funding for decarbonisation | Yes, if public sector |
| Industrial Energy Transformation Fund | Industrial sites with significant process energy | Capital grants for efficiency and deep decarbonisation | Sector-specific |
| Boiler Upgrade Scheme | Domestic and small non-domestic buildings | Fixed grant toward a heat pump | Small buildings only |
| Green / sustainability-linked loans | Owners refinancing or borrowing | Margin reduction tied to efficiency targets | Yes, increasingly |
| Local growth hub grants | SMEs, varies by region | Small capital grants; amounts and eligibility vary by region | Patchy, worth checking |
| ECO4 / GBIS / Warm Homes | Domestic only | – | Not available |
The lending argument is usually the biggest number
For most commercial owners the material financial effect of a poor rating is not the cost of the works. It is what the rating does to the asset.
- An unlettable building is a valuation event. A building that cannot lawfully be let has no rental value to capitalise, and valuers increasingly say so explicitly.
- Covenants respond. A valuation fall moves loan-to-value, and LTV covenants do not wait for 2031.
- Margin is negotiable against evidence. Sustainability-linked facilities price improvement. A credible, costed, dated plan is the document that conversation needs.
Tax relief is the main route for private owners
Most qualifying energy efficiency work is plant and machinery, and a good deal of it falls into the integral features category. The reliefs are worth real money and are routinely under-claimed because nobody separates the qualifying elements out of a refurbishment contract. Capital allowances in detail →
Build the document a lender will actually price
The Upgrade Plan sets out the route, the cost, the sequencing against your lease events and the target band.
Common questions
Can I get ECO4 funding for a commercial building?
No. ECO4 and the Great British Insulation Scheme are domestic schemes, funded through domestic energy supplier obligations. They do not apply to non-domestic property, and we flag this explicitly so you are not chasing a grant you cannot use.
Does the Boiler Upgrade Scheme cover commercial property?
Partially, and this is a genuine nuance. The BUS covers domestic properties and small non-domestic buildings in England and Wales. A large office or industrial unit is outside it.
Is there a general grant for commercial energy efficiency?
No universal one. Public-sector bodies have Salix; industrial process sites have the IETF; everyone else is largely in the territory of tax relief and lending rather than grants.
Sources
- Capital allowances: full expensing – GOV.UK
- Salix Finance – salixfinance.co.uk
- Industrial Energy Transformation Fund – GOV.UK
- Boiler Upgrade Scheme – GOV.UK
Legislation is cited to the version in force at the date below. We publish a corrections policy and amend pages when the law changes.