Commercial Energy Efficiency
Packages in London
Solar PV, LED lighting, insulation, heat pumps, smart controls and battery storage — bundled into a single grant-funded project for London businesses. One survey, one contract, maximum funding.
Energy efficiency funding in London
Bundling energy efficiency measures unlocks stacking incentives — often reducing net project cost to 40–55% of gross capex.
100% first-year tax relief on all measures
Every qualifying energy efficiency measure — solar PV, LED, heat pump, BESS, smart controls, insulation, EV charging — qualifies for Full Expensing. 100% of capex deducted from corporation tax in Year 1. On a £400,000 bundled project: £100,000 CT saving at 25% corp tax. Permanent, no cap.
Zero VAT on qualifying energy-saving measures
Solar PV, battery storage co-located with solar, insulation materials and qualifying energy-saving controls qualify for 0% VAT under energy-saving materials rules. On a £400,000 bundled project, 0% VAT versus 20% saves £80,000 in Year 0. Maximum impact when all qualifying measures are contracted together.
Interest-free loans for public sector
NHS, schools, councils and universities in London access Salix Finance interest-free loans for bundled energy efficiency packages. Repaid from energy savings. Typically 5–12 year terms, £50k–£3m+ per project. Open-ended, no competition, accepting applications continuously. PSDS Phase 4 closed but Salix BAU loans are open.
EPC upgrade as investment protection
Minimum Energy Efficiency Standards (MEES) require commercial premises to achieve EPC E minimum to be legally let. Consultation is underway on mandatory EPC C (2027) and B (2030). Energy efficiency packages that improve EPC ratings protect London commercial landlords from unlettable assets and void periods.
What's in a London energy efficiency package
Reduces grid import by 30–60% depending on roof area and demand profile. Foundation of any London commercial energy efficiency package. Qualifies for 0% VAT, Full Expensing, and SEG export income.
Replaces T8 fluorescent and metal halide with LED — typically reduces lighting energy by 60–75%. Fast payback (3–5 years standalone). Qualifies for Full Expensing. Reduces heat load from lighting, improving HVAC efficiency.
Replaces gas boilers with air or ground source heat pump. CoP 3.5–5.0 means each unit of electricity from solar produces 3.5–5 units of heat. Qualifies for Full Expensing and Salix Finance for London public sector.
Captures surplus solar for use during evening demand peaks. Increases self-consumption from 55–65% to 80–90%. Enables time-of-use arbitrage. 0% VAT when co-located with solar, Full Expensing on full capex.
Workplace chargers funded via OZEV WCS (up to £14,000). Fleet depot chargers via EVIG (up to 75%). Co-located with solar for near-zero marginal EV charging cost during daylight hours.
Building management system optimisation, occupancy-based HVAC, automated demand response. Typically reduces HVAC energy consumption by 15–25% with no structural changes. Full Expensing eligible.
Full energy efficiency package for a 3,000 m² London commercial building
- • 200 kWp rooftop solar: ~£140,000
- • LED lighting upgrade (full building): ~£45,000
- • 150 kW ASHP (boiler replacement): ~£90,000
- • 150 kWh battery storage: ~£72,000
- • Smart BMS + controls: ~£25,000
- • 10× 7kW EV chargers: ~£28,000
- Total gross: ~£400,000
- • 0% VAT saving (solar, BESS, insulation): ~£62,000
- • Full Expensing at 25% CT: ~£100,000
- • OZEV WCS grants (10 sockets): ~£3,500
- Net cost after Year 1 relief: ~£234,500
- Annual energy savings: ~£65,000
- Payback on net cost: ~3.6 years
MEES and EPC compliance in London
Minimum Energy Efficiency Standards create a compliance deadline and an investment opportunity for London commercial property owners:
Energy efficiency in London sectors
Individual services in London
Energy efficiency questions from London businesses
What energy efficiency grants are available for London businesses?
What does an energy efficiency package include for London businesses?
Does London have MEES compliance requirements?
What is the typical payback for a London commercial energy efficiency package?
Free energy efficiency audit for your London site
We identify every qualifying measure, model the savings, and return a bundled grant-funded project plan within one working day.
No obligation. We don't charge for grant scoping.