What 750 small business grant applications reveal about sustainability investment, successful applicants and future grant opportunities
Between July and August, we launched our first-ever Small Business Grant Programme. The aim was simple: to offer £5,000 grants to small businesses across the UK, helping them invest in their sustainability ambitions.
The response exceeded our expectations, with more than 750 applications submitted. What stood out most was how many small business owners are already committed to becoming more sustainable. However, as highlighted in the Growth on Hold report, many simply don't have the resources to invest in growth initiatives, whether sustainability-related or otherwise. The level of demand for the grant shows just how needed this support was.
You can see full details of the grant here - this has now closed.
What are small businesses looking at most for investment?
Based on the applications we saw some interesting themes came through. Firstly, solar is the dominant theme, appearing in the majority of applications. And when we combined solar panels and battery storage as a solution for renewable energy generation and storage, this combination is by far the strongest trend. Not far behind, EV-related investment are another major area for business owners.
| 1 | Small solar installation | 182 |
| 2 | Energy efficient appliances | 157 |
| 2 | EV Charger | 157 |
| 4 | Other sustainability projects | 151 |
| 5 | Battery storage | 127 |
| 6 | Enhanced insulation | 91 |
| 7 | Replacing old heaters | 88 |
| 8 | Deposit for EV / EV fleet | 82 |
| 9 | Heat pumps | 67 |
This chart shows a high-level view of where businesses applied for investment to use their £5,000 grant. Some themes are grouped together for ease.
What businesses are actually trying to achieve with sustainable initiatives
Looking through the applications, businesses have clear ambitions for their sustainable future.
1. Generate their own electricity
Most commonly:
- Solar PV installations
- Solar + battery packages
- Battery expansion to existing solar systems
Many applicants already have solar and want battery storage so they can use more of their own generated power rather than exporting it back to the grid. This shows that many small business owners are very educated on how to reduce costs and environmental impact.
This was most common across farms, holiday parks, hotels, caravan parks, manufacturing businesses and community organisations. It’s likely this is because these business either own their property or have long term business rent agreements to be able to see the benefits of their investments on bills.
2. Cut energy bills through smaller efficiency updates
Very common projects included simple but effective energy efficiency upgrades:
- LED lighting upgrades
- New refrigeration systems
- Energy-efficient kitchen equipment
- Efficient workshop machinery
- Smart monitoring systems
- Efficient office equipment
Many businesses in their application forms stated that electricity was their second-highest or highest operating cost and these entry level upgrades are the first changes businesses should be making before bigger investments.
3. Electrify transport
A significant number of applicants were couriers, tradespeople, farms and hospitality businesses. These businesses were looking to electrify their transport though EV chargers and vehicles.
4. Improve heat retention
Older buildings were a recurring theme, stating they were keen to stay put and keep the charm or heart of their businesses, these applications focused on reducing energy waste through:
- Better insulation
- New windows
- Replacement doors
- Draught-proofing
- Secondary glazing
Hotels, pubs, salons and community buildings were particularly represented here.
5. Replace outdated heating systems
Many applicants are trying to move away from traditional heating sources; electric heaters, oil boilers and gas heating and looking to invest in more innovative and sustainable heating systems such as heat pumps. This seemed more common in hospitality, leisure and community venues.
Regional trends for business sustainability investment
The strongest application volumes came from Wales and the South East, but overall the spread of applications show businesses across the UK are looking to grow more sustainably.
| Region | Applications |
| Wales | 123 |
| South East | 101 |
| London | 90 |
| South West | 79 |
| West Midlands | 51 |
| East of England | 49 |
| Yorkshire & Humber | 49 |
Industry insights
Solar and battery is maturing
Many applicants weren't seeking their first solar installation. Instead, they already had solar and wanted battery storage to optimise their sustainable set up. A significant proportion of these applications came from the below industries trying to reduce rising costs of heating and energy for refrigeration with others adding customer value by offer EV charging to their guests without charging the earth.
- Hotels
- B&Bs
- Holiday cottages
- Caravan parks
- Restaurants
- Cafés
- Pubs
Small manufacturers are focused on equipment
Manufacturers highlighted the need to reduce energy-intensive production costs through:
- New machinery
- Efficient motors
- LED lighting
- Solar panels
- Battery storage
Community organisations focus on sustainability and resilience
Many CICs, charities and community centres were applying not just to reduce carbon emissions but to:
- Keep facilities affordable
- Maintain warm spaces
- Support vulnerable people
- Improve financial sustainability
The winning grant applications and their reaction
There were x5 £5k grants available and x5 free EV Pod workplace chargers. Here are the winners and their reactions.
A welcoming community and visitor hub at the heart of New Mills. Their aim is to bring people together, to share knowledge, celebrate creativity, and build connections. They provide visitor information, a venue for community activities, and a home for events, exhibitions, workshops, and talks. Everything they do is guided by a belief in community spirit and a commitment to a more sustainable future for everyone who lives in and visits the area.
"We have recently had the planning permission confirmed for our Decarbonisation Showcase project - the Powering Local Businesses Grant will mean we can now incorporate battery storage within the project development. The battery storage will allow us to use cheaper electricity, and it will form part of a whole building approach that will also be on show to all our visitors." Toby Hardwick
NoFit State is the UK’s leading large-scale contemporary circus company, producing professional touring productions and a wide variety of community, training, and education projects for people of all ages.
Their vision for the grant is to invest in battery storage.
3. https://birtleycommunitypool.org.uk/
Birtley Community Pool is a not-for-profit, community-led aquatic centre that provides affordable swimming, leisure and wellbeing activities, with a strong focus on inclusion, health, and community development. The organisation works closely with local people and partners to deliver safe, accessible opportunities that support physical, social and emotional wellbeing while reinvesting in services that benefit the wider community.
"This grant will help Birtley Community Pool to invest in destratification fans, which will reduce our annual carbon emissions by 28,000kg, and our annual energy costs by £7.3k. It will also improve the environment in our pool hall by eliminating cold spots which are quite challenging for the elderly and very young children." Matthew Grant
4. https://tilefieldequestrian.com/about-tilefield-nature/
Tilefield Nature is a Community Interest Company, set up to create public benefit through thoughtful work with land, nature and learning. Alongside conservation and land-based projects, they are interested in making nature and environmental knowledge easier to engage with, whether that is through first encounters or more in-depth, research-informed work. The focus is on using Tilefield as a place to explore ideas, test approaches and share learning as the work develops.
"We are absolutely delighted to receive this £5,000 award. It means we can go ahead with the full solar and battery project now, rather than having to delay or reduce it, helping us cut our reliance on grid electricity while supporting the environmental, educational and community work taking place at Tilefield Nature.
A huge thank you to everyone involved in the Powering Local Businesses ESG & Sustainability Grant for supporting us and helping to make this possible.”
5. Lisa Green https://door84.org.uk/what-we-do/youth-work/
Door 84 is a York-based charity and community hub that has been supporting young people, adults with disabilities, and local residents for more than 80 years, providing activities, services and spaces that bring people together. Its mission is to create opportunities for connection, growth and inclusion, helping individuals and families achieve their potential and lead happy, safe and fulfilled lives.
"Receiving a grant to help us become more sustainable as an organisation is hugely appreciated. At a time when small charities face rising costs, this money will help us reduce costs and improve our services. It couldn't have come at a better time as we look to improve our building."
EV Pod workplace chargers winners:
Founded in 2018, The Blackened Teeth creates distinctive handcrafted homeware inspired by unusual and thought-provoking subjects not traditionally associated with interior design. What began as a small family business in Cardiff has grown into a thriving South Wales manufacturer, with a team of artisans producing products for a global customer base.
Since 2009, Ark Farm has been bringing educational animal experiences directly to schools, nurseries and community settings, making hands-on learning more accessible and affordable. Home to a diverse range of animals bred on its 10-acre farm, the business combines animal welfare and educational expertise to create memorable experiences that support learning, wellbeing and engagement.
Land & Wave is an outdoor adventure and education company based in Swanage on Dorset Jurassic Coast. Founded in 2009, we run school residentials, DofE expeditions, outdoor instructor training and public adventure sessions like kayaking, coasteering and bushcraft for thousands of children and adults every year. The outdoors is our workplace and classroom, so protecting it matters - in our new era we are committed to shrinking our footprint as the business grows.
"This EV charger will be a fantastic catalyst for change in our business, giving us the push we need to start converting our fleet of minibuses and vans to EV's over time. The ultimate end-goal is provide outdoor adventure residentials purely run by electric!" Rosie Ranner
Two more winners to be announced soon.
Our next grant: Business resilience grant - launching on 20th October
We’re not done yet helping businesses in 2026. Applications for our next wave of grants open on 20th October. They’ll be 25, £1k grants available to successful eligible business. More information next week.
Until then, keep an eye on our Powering Local Businesses Hub for more information
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