As the UK accelerates its drive towards net zero emissions, businesses face increasing pressure to adopt sustainable practices. Refrigeration systems are significant energy consumers, contributing heavily to carbon emissions. Upgrading to net zero refrigeration systems offers businesses a way to cut energy costs, reduce their carbon footprint, and align with government climate goals.
Fortunately, UK businesses can access a range of grants, loans, and support schemes to facilitate the transition to these energy-efficient systems. In this blog, we’ll explore some of the funding options available and how businesses can benefit from them.
Why Invest in Net Zero Refrigeration Systems?
Net zero refrigeration systems use advanced technologies that minimise energy consumption and use low GWP refrigerants such as CO2, ammonia, or hydrocarbons. These systems are designed to be more energy-efficient, resulting in lower operational costs and a reduced environmental impact. For businesses, transitioning to greener refrigeration helps future-proof operations and ensures compliance with evolving regulations aimed at meeting the UK’s 2050 net zero target.
A good place to start researching help for businesses is the Department for Energy Security and Net Zero.
If you’re thinking of investing in renewable or low-carbon energy schemes to support your business’s move towards net zero, it’s worth noting that some planning policies have been updated in your favour. For example, the National Planning Policy Framework (NPPF) states that ‘all communities have a responsibility to help increase the use and supply of green energy.’
Your industry trade bodies can also provide support and updates in terms of strategic planning guidance and research frameworks, for example…
Transport Industrial Commercial Refrigeration (TICR) Project
Cold Chain Federation – Road to Net Zero
Government Grants and Funding Schemes
Several government programmes can help UK businesses finance net zero refrigeration upgrades. The Government currently claims there is almost £5 billion of funding available to help UK businesses work towards net zero.
Industrial Energy Transformation Fund (IETF)
The IETF supports energy-intensive businesses in reducing energy consumption. The fund covers projects like refrigeration system upgrades. Businesses can apply for grants to help with the upfront costs of energy-efficient technologies.
More details on the fund and how to apply are available on the IETF website here.
Enhanced Capital Allowance (ECA) Scheme
The ECA Scheme offers first-year tax relief for businesses investing in energy-efficient equipment, including refrigeration systems. Companies can offset the cost of these systems against their taxable profits, making the investment more affordable.
Eligible equipment is listed on the UK Government’s Energy Technology List (ETL), here.
Local and Regional Grant Opportunities
Businesses can also explore grants from local councils and regional organisations tailored to support energy efficiency projects. Many of these schemes are only available for limited periods or until specific grant money has been distributed. Examples of successful, but discontinued, schemes are the Local Enterprise Partnerships (LEPs) and the Low Carbon Workspaces programme.
The replacements for these funds, and many newer incentive opportunities, are generally administered through local councils and are therefore region-specific with different criteria and funding levels. We recommend you check your local council’s website or enquire through regional business support groups for specific opportunities and grants in your area.
Private Sector Support and Financial Products
In addition to government-backed schemes, private sector financial institutions offer green finance products to support businesses in making energy-efficient upgrades.
Green Investment Loans
Banks and financial institutions offer Green Investment Loans for sustainable projects. These loans often feature lower interest rates or more favourable terms for businesses investing in energy-efficient technologies like refrigeration systems.
Check with your financial provider for details.
Partnerships with Energy Suppliers
Energy suppliers often partner with businesses to provide subsidies or technical support for energy-efficient upgrades. These partnerships can help businesses reduce energy costs while receiving expert advice on installing and maintaining greener refrigeration systems.
Businesses can consult their energy supplier to explore partnership opportunities or visit the Carbon Trust website for guidance.
Consultancy and Technical Support
Several organisations provide consultancy services to help businesses navigate their refrigeration upgrade journey and secure financial support.
Energy Saving Trust
The Energy Saving Trust offers businesses advice on energy-efficient technologies, including refrigeration systems, and can help identify funding options. They also provide detailed energy-saving plans that include both immediate improvements and long-term strategies.
Carbon Trust
The Carbon Trust provides expert consultancy on energy efficiency and carbon reduction, offering businesses tailored advice on refrigeration systems. They also offer financial incentives and support for businesses upgrading to net zero technologies.
Visit https://www.carbontrust.com/ for more information.
Challenges and Considerations
While there are many grants and loans available, businesses may face challenges when upgrading refrigeration systems. The upfront costs can be high, even with financial support, and navigating the various funding schemes can be time-consuming.
However, the long-term benefits—lower energy bills, future compliance with regulations, and enhanced sustainability—make the investment worthwhile. Professional consultancy services can assist with grant applications and ensure businesses make the most of available funding. Here at Ultra we can help you improve the efficiency of your existing refrigeration equipment or look at innovative ways of delivering a new project.
Next Steps for Businesses
Businesses interested in upgrading to net zero refrigeration systems can take the following steps:
- Conduct an Energy Audit: Assess current refrigeration energy use and identify areas for improvement.
- Research Funding Options: Explore national, local, and private funding schemes that match your business needs.
- Consult Experts: Seek advice from organisations like the Carbon Trust or Energy Saving Trust to ensure you choose the right refrigeration system and funding route.
Develop a Transition Plan: Create a roadmap for system upgrades, accounting for timelines, costs, and potential energy savings.
Conclusion
Investing in net zero refrigeration systems not only reduces a business’s carbon footprint but also offers significant financial benefits through reduced energy consumption and compliance with future regulations. By taking advantage of the wide range of grants, loans, and consultancy support available, UK businesses can make this transition more affordable and achievable.
If you would like to discuss ways of improving the efficiency of your existing refrigeration equipment, or want to talk about a new project, please get in touch by emailing us today at info@ultraref.co.uk or calling us on +44 (0) 330 2232404.
