In today's world, the pressing issue of climate change necessitates urgent action. Small and medium-sized enterprises (SMEs) play a crucial role in this endeavor, and there's good news for those located in Bath & North East Somerset, Bristol, or South Gloucestershire: the Green Business Grant is here to help you make meaningful strides toward sustainability. This grant offers an incredible opportunity to reduce greenhouse gas emissions, lower utility costs, and enhance energy efficiency within your business operations. In this blog, we'll delve into the details of this remarkable initiative, discussing eligibility criteria, eligible projects, and the application process.
Understanding the Green Business Grant
The Green Business Grant is part of the West of England Combined Authority's Low Carbon Business Support program, funded by the West of England Green Recovery Fund. The primary objective is to facilitate the transition to a low carbon economy while promoting a green recovery from the adverse effects of the COVID-19 pandemic.
One of the most attractive aspects of this grant is its flexibility. SMEs can apply for funding ranging from £500 to £15,000, covering a substantial portion (30% to 60%) of eligible capital costs associated with the purchase and installation of energy-efficient equipment and products.
Eligible Projects
To make the most of this grant, it's essential to understand the types of projects that qualify. Eligible projects should:
1. Be based on independent recommendations: These recommendations should ideally come from sources like a carbon survey carried out by the applicant or a third-party independent surveyor/consultant. This ensures the project's alignment with greenhouse gas reduction goals.
2. Reduce greenhouse gas emissions: The project must be a capital project aimed at reducing greenhouse gas emissions. This reduction is a pivotal factor in evaluating eligibility.
3. Not be tied to other legal obligations: Projects should not be required to fulfill any other legal obligations, such as conditions of planning permission. This grant should be applied solely for sustainability enhancements.
4. Not be initiated prematurely: It's important to wait for approval before beginning any project or entering into contracts.
5. Meet minimum requirements: The project should exceed the minimum grant request of £500, in line with your company's goals.
6. Have necessary permissions: Ensure that your project complies with current Building Regulations and has the necessary planning permissions.
7. Be financially viable: The project should be financially feasible, with sufficient cash flow to complete it.
Eligible Activities
The Green Business Grant covers various activities that contribute to energy efficiency and carbon emission reduction. These activities include:
1. Energy-efficient building improvements: This encompasses projects like insulation, heating system upgrades, lighting enhancements, and the installation of energy-efficient glazing.
2. Business operation upgrades: Funding can be allocated for capital purchases that improve the energy efficiency and carbon emissions of your business operations. This includes investments in manufacturing and office equipment designed to reduce your environmental footprint.
3. Renewable energy generation: The grant can also be utilized for renewable energy initiatives, such as solar photovoltaic (PV) installations, to further promote sustainable energy practices.
It's crucial to emphasize that your project must deliver tangible carbon emissions savings, measured in tonnes of carbon dioxide equivalent (tCO2e). The grant cannot be used for activities that increase overall carbon emissions.
Who Can Apply?
The Green Business Grant is available to SMEs. To be eligible, your business must meet the following criteria:
1. Size: Your business should have fewer than 250 employees.
2. Financials: Your business should have a turnover equal to or less than £36 million OR a balance sheet of equal to or less than £18 million.
3. Location: Your business must have trading premises in Bath & North East Somerset, Bristol, or South Gloucestershire, and your project must also be based in this region.
Your business can take any legal entity form, such as a private limited company, community interest company, community benefit society, or registered charity. If your business is part of a partnership or has a linked enterprise, provide comprehensive information about your company structure in your application to expedite the process.
Ineligible Activities
While the Green Business Grant offers a wide scope for sustainable projects, some activities and entities do not qualify for funding. Ineligible activities include:
1. Recommendation source: Anything not recommended by a suitable independent assessment of your business's carbon emissions does not qualify.
2. Requirements: Projects that fail to meet the requirements specified in the Grant Guidance are ineligible.
3. Uncertain savings: Improvements that do not directly result in carbon savings or are impossible to estimate, such as electric battery storage, do not qualify.
4. Completed projects: Retrospective applications for completed projects or those with existing supplier contracts are not considered.
5. High-cost projects: Improvements that cost more than £100,000 (ex VAT) in total are not eligible.
6. Energy performance certificates: Improvements to buildings that are required by law to have a domestic energy performance certificate are excluded.
7. Legal obligations: Activities mandated by law, such as meeting planning permission conditions or minimum energy efficiency standards, do not qualify.
8. Transport-related projects: This grant does not cover transport-related projects, such as fleet electric vehicles, on-site electric vehicles, charging points, or car clubs.
9. Non-capital costs: Revenue (non-capital) costs like surveys, consultancy, planning fees, or non-capital improvements such as migrating to cloud or remote services are not eligible.
Who Cannot Apply?
While the Green Business Grant welcomes SMEs with open arms, certain businesses and entities are ineligible to apply. These include:
1. Large businesses: Large businesses do not qualify for this grant.
2. Sole traders and partnerships: Sole traders, partnerships, and businesses using cash-based accounting are excluded.
3. Specific entities: Community groups, sports clubs, village halls, and similar entities are ineligible, unless they apply as registered charities or through a trading arm.
4. Specific sectors: GPs, dentists, opticians, care homes, schools, and colleges do not qualify.
5. Domestic landlords: Private domestic landlords or businesses operating from buildings required by law to have a domestic Energy Performance Certificate are not eligible.
The Green Business Grant offers SMEs an incredible opportunity to make substantial strides toward sustainability while reducing costs. By understanding the eligibility criteria and the types of projects that qualify, your business can harness this grant to implement energy-efficient solutions and reduce carbon emissions. Take advantage of this initiative to not only benefit your business but also contribute to the larger goal of combating climate change. For more information and to apply, visit the West of England Combined Authority website and join the movement towards a greener future.
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