6th December 2023
Energy efficiency has never been more important for hard-pressed companies with thin margins and high energy consumption – but there is support available.
The Industrial Energy Transformation Fund (IETF) is a government-funded initiative designed to help UK businesses with high energy use cut their energy bills and carbon emissions by investing in energy efficiency and low-carbon technologies. It is managed by the Department for Energy Security & Net Zero.
Phase 3 of the IETF is expected to launch in January 2024 and close in April 2024, followed by a final Phase 3 competition window in Summer 2024, enabling the industry to apply in line with internal investment and replacement cycles. It will provide up to £185 million of funding and will run until 2027.
The IETF can help businesses in the UK to save money on their energy bills in a number of ways:
The amount of money that businesses can get from IETF depends on the type of project, the size of the business, and the geographical location. The overall trend is that smaller businesses are more likely to receive funding than larger businesses. The minimum grant threshold for deployment projects is decreasing to £75,000 for SMEs only. The remaining will stay at the £100k minimum grant threshold. Tier 1 and Tier 2 areas will receive more funding, with an uplift between 5% to 15%. Tier 1 includes areas such as Cornwall, Isles of Scilly, and Carmarthenshire.
To be eligible for funding from the IETF, businesses must:
The eligible SIC codes for IETF are as follows:
(N.B. Coal mining activities will no longer be eligible for funding)
What is the application process?
Applications for funding from the IETF are made online through the Innovate UK website. The application process is competitive, and businesses are encouraged to work with an energy consultant to develop a strong application.
In general, it can take up to 12 weeks to hear back from the IETF on an application. This is because the IETF team needs to carefully review applications and score them against the eligibility criteria.
If the application is successful, they will be invited to submit a full project proposal. This proposal will be evaluated by the IETF team and a panel of experts. If the project proposal is successful, they will be invited to enter a contract with the IETF. The contract will set out the terms and conditions of the funding.
How can Inenco help?
Given the likely short application window, we would encourage you to talk to us at an early opportunity. This will enable us to collectively pre-plan and collect the necessary data to maximise the likelihood of compiling a successful bid. We can help you collect data to support your application, develop and complete the necessary documentation, meet with you to review the application and confirm approval and readiness for submission. If the application is successful, we can provide a Monitoring and Verification Plan and then supply data in line with that plan for five years, as requested by the scheme.
To find out how the experts at Inenco can help you develop and implement your net zero transition plan, please contact us at 08451 46 36 26.