Green Grant Fund

This fund from Highland and Island Enterprise aims to help businesses in the Highlands and Islands to reduce their energy use or make it greener. The fund is specifically for businesses in the tourism, creative and food and drink processing sectors and social enterprises in any sector.

Funding of up to £150,000 is available, which will cover up to 50% of the total cost of a project. The minimum grant award is £25,000.

Projects can include anything that helps businesses or social enterprises reduce or green their energy use and achieve net zero carbon emissions. Examples include energy efficiency measures, renewables, active business travel and waste management.

The funding can be used for most categories of capital investment, such as purchasing equipment, fixtures, fittings and IT infrastructure.

The grant can also be used for the construction, adaptation or upgrade of premises or other business infrastructure.

You'll need to demonstrate that the funding will help you to progress towards net zero carbon emissions and reduce your energy bills in the long term.

Other possible uses include: 

• improvements to building fabric and equipment, such as: 
  • upgrading the efficiency of heating, ventilation, and air conditioning
  • installing renewable heat technologies, such as an air source heat pump, ground source heat pump, biomass boiler or solar thermal system
  • improving insulation, draught-proofing, or installing new doors or double or secondary glazing
  • installing renewable electricity generation or storage systems, such as wind turbines or batteries
  • introducing new equipment that improves the energy efficiency of your processes
  • improving the energy efficiency of business equipment or machinery
• supporting the switch to active travel or electric vehicles (EV), such as:
  • installing shower facilities or active travel infrastructure such as cycle racks
  • installing EV charging points on your premises
• waste reduction, recovery and reprocessing measures, such as:  
  • projects that reduce waste production
  • introducing new equipment that improves your current practices for waste reuse through recovery and reprocessing
  • projects that close the loop on resources that would otherwise be wasted to create a circular economy

To be eligible for the grant, your business must:

• be a small or medium-sized enterprise
• have at least 10 full time equivalent employees (FTEs) if your business is based in the Inner Moray Firth area, unless it's a social enterprise
• have been trading for at least 6 months
• operate in the tourism, creative or food and drink processing industries, unless it's a social enterprise - then it can be in any sector
• own your own premises in the Highlands and Islands or have written permission from your landlord to make changes to the premises and seek planning permission from your local council
• trade in the Highlands and Islands
• pay non-domestic rates

For applicants in parts of the Highlands and Islands other than the Inner Moray Firth area, preference will be given to applicants that employ at least 5 FTEs.

Applicants must also meet HIE’s fair work conditions. This includes paying your employees aged 18 years or over at least the Real Living Wage. This is currently £10.90 per hour.

Businesses that are owned by another business with more than a 25% stake or that operate out with the tourism, creative and food and drink sectors are not eligible.

Before you apply, you must measure your corporate carbon footprint for at least Scope 1 and Scope 2 emissions using a recognised footprinting tool or methodology - the Scottish Business Climate Collaboration suite of resources is recommended.

Scope 1 refers to fossil fuels such as oil, gas, LPG, petrol or diesel that are used to heat buildings or to power vehicles. Scope 2 refers to the purchase and use of grid-supplied electricity, steam or heat.

Funding cannot be used for the:

• purchase or installation of LED Lighting
• purchase or installation of solar or photovoltaic panels

Funding may be available for the purchase of electric vehicles, but you'll need to show that you've already tried to get all forms of commercial finance before you apply to this fund.

Grants of up to £150,000 are available to cover up to 50% of the total cost of a project. You will need to be prepared to fund the remaining costs from other sources.

You'll also need to pay for all project costs upfront, then submit a claim to receive your grant.

Businesses in the tourism, creative industries and food and drink processing sectors, and social enterprises in any sector, across the Highlands and Islands who want to reduce or green their energy use. 

The application process has 2 stages.

The first stage is to complete the online expression of interest form. The deadline to submit this is midday on 14 July 2023.

You'll hear about the outcome of your expression of interest by 31 July.

If your application is successful, you'll be allocated a development manager who advise you on how to make a stage 2 application.

If your application is unsuccessful Highlands and Islands Enterprise will explain why and will highlight other relevant forms of support where possible.

All projects must be completed and claims submitted by 20 March 2024.

Visit the Highlands and Islands Enterprise website for more information and to complete an expression of interest form.