Low Emission Zone Retrofit Fund

Support provided by Energy Savings Trust

What does this involve?

The Low Emission Zone (LEZ) Retrofit Fund helps micro businesses and sole traders improve their vehicle and avoid future LEZ penalties. Eligible businesses operating non-compliant vehicles with available retrofit solutions in a planned LEZ can receive up to 80% funding to retrofit of their vehicle, subject to availability and terms and conditions.

Low Emission Zones have been introduced in Glasgow, Edinburgh, Aberdeen and Dundee in 2022. LEZs are designed to improve local air quality by discouraging older, more polluting vehicles from entering the zone.

By retrofitting vehicles with CVRAS-approved solutions, emissions from vehicles will be reduced, improving local air quality. By becoming LEZ compliant, vehicle owners can also avoid penalties.

Am I eligible?

To be eligible for the Low Emission Zone Retrofit Fund, you must meet all of the following criteria:

  • your business must be an active micro business or a sole trader. To fit this definition, your business must:
    • employ no more than 9 full-time equivalent employees
    • have a turnover of £632,000 or less, or a balance sheet of up to £316,000 in the preceding and current financial year
    • not be VAT-registered
  • your business must own a vehicle that does not meet the minimum emissions standards of low emission zones, such as:
    • Euro 3 or older petrol vehicles – this generally applies to those registered before 2006
    • Euro 5 or older diesel vehicles – this generally applies to those registered before September 2015
  • you must regularly operate this vehicle within one of the planned low emission zones

The vehicle must be one of the following, and must also have an approved Clean Vehicle Retrofit Accreditation Scheme (CVRAS) retrofit solution available for the exact make and model:

  • wheelchair-accessible taxi
  • light commercial vehicles – vehicles designed to carry goods that weigh less than 3.5 tonnes
  • heavy goods vehicles – vehicles designed to carry goods that weigh 3.5 tonnes or more
  • refuse collection vehicles – vehicles specially designed to collect and transport solid waste

To see the full eligibility criteria, please follow the link at the bottom of this page to the Energy Saving Trust website.

What does this cost?

The Energy Saving Trust offers up to 80% funding towards the installation of retrofit solutions, up to a cap depending on the vehicle/solution chosen. The remaining balance must be covered by the applicant.

Who is this for?

The fund covers the following, if they operate in a planned low emission zone:

  • microbusinesses and sole traders
  • operating wheelchair-accessible taxis
  • Light Commercial Vehicles (LCVs)
  • Heavy Goods Vehicles (HGVs)
  • Refuse Collection Vehicle (RCVs)

How long does this take?

Applications are reviewed within 10 working days of submission - any missing or inaccurate information can result in delayed grant payment.

Once a grant is offered, businesses have 3 months to install their solution and submit claim paperwork. Once this has been processed, a payment will be made to the solution installer.

Important information

You should not install retrofit solutions until a grant offer letter is in place.

Those opting for SCR exhaust after-treatment solutions must agree to the installation of telematics. This information will be reviewed by the Energy Saving Trust to monitor the success of improving air quality within the planned low emission zones. The cost of telematics will be covered by Energy Saving Trust.

Funding is subject to availability and will be awarded on a first come, first served basis until 31 March 2023.

Next steps

Visit the Energy Saving Trust website to check eligibility and apply. 

Before applying, please contact an installer to get a solution quote.

You can check vehicle compatibility and installer details, external link which will open in a new window before you apply.

Support provided by Energy Savings Trust

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