HIE Green grant fund

What is it?
HIE's Green Grant Fund aims to support businesses and social enterprises across the Highlands and Islands to transition to net zero.

The funding is a non-repayable grant of up to £250,000, which will cover between 10% and 40% of the total cost of a project. The minimum grant award is £20,000. Projects with a total cost of £50,000 or less are therefore unlikely to be eligible.

Projects can include anything that helps businesses and social enterprises to reduce carbon emissions and make progress towards achieving net zero, for example through energy efficiency measures, renewables, or waste management.

Prioritising projects based in remote and rural areas where applicants may be eligible for up to 50% funding.

HIE’s contribution to projects will be based on the financial need of the business or social enterprise. Applicants will be required to provide financial information on request to allow an assessment to be made.

What can the grant be used for?
The funding can be used towards capital investment, including but not limited to, purchasing equipment, fixtures, fittings and installation costs. You will need to demonstrate that the funding will reduce your carbon emissions.

Suggested uses include:
Upgrading the efficiency of heating, ventilation, and air conditioning:
Building management systems
Condensing, combination, modular and steam boilers
Cooling system replacement/ upgrade

Building Fabric:
Improving insulation in the walls, floor and roof of your building
Draught proofing
Installing high performance external and internal doors or double/secondary glazing

Other Equipment:
Purchase and/or installation of LED Lighting (can only be supported where this forms part of a larger project to reduce carbon emissions i.e. in conjunction with other suggested uses of the fund)
Introduction of monitoring, measuring and control equipment to help you manage emissions
Replacement of business equipment or machinery with more energy efficient systems

Renewables Systems:
Renewable heat technologies such as installing air source heat pumps, ground source heat pumps, or solar thermal system
Purchase and/or installation of renewable energy generating devices where there is on-site energy storage capability, for example wind turbines and solar PV. There is no requirement to have battery storage in place prior to application, however we are unable to support renewable generation projects where energy not used by the organisation is sold to the grid.(Solar PV can only be supported where it forms part of a larger project to reduce carbon emissions i.e. in conjunction with other suggested uses of the fund)
Battery storage

Supporting sustainable travel:
Installing EV charging infrastructure on premises for vehicles owned or leased by the organisation and where there is a demonstrable associated reduction in petrol/diesel consumption. Installation must not be primarily for use by the public, customers or commuting staff

Waste minimisation, recovery, and reprocessing:

To apply for support in this area you will need to provide actual rather than estimated emissions data on wastage i.e. you will need to have measured the emissions for the previous 12 months prior to application.

Projects that will result in a reduction in waste production
Introduction of new equipment that provides new opportunities or improves current practices for reusing waste through recovery and reprocessing
Projects that close the loop on resources that would otherwise be wasted (circular economy) e.g. anaerobic digestion plant

What can the funding NOT be used for?
The funding can not be used for the following:
Projects that have already started at the time of submitting an expression of interest. Any costs that have been invoiced to the applicant or paid by the applicant prior to submitting an expression of interest will not be eligible for funding.
The purchase of electric vehicles including bikes and cars.
Purchase and/or installation of EV charging points where the primary use is for public, customer or staff commuter use.
Replacement of one fossil fuel technology/system with another fossil fuel technology/system where there is no realistic opportunity to change out the fuel type in future.
Support for housing.
Waste management costs involving a third party.
Audio-visual equipment including televisions, laptops/ computers, cameras etc.
Renewable energy systems where the applicant will receive a subsidy and/or intend to sell electricity to the grid.

Projects where the introduction of new technology results in an increase in carbon emissions.*

Refurbishment of derelict or unused buildings - taking a derelict or unused building into use by refurbishing it, will in most cases increase the carbon footprint of the building.*

Who's eligible?
To be eligible for the grant, your organisation must:

• Be a small or medium-sized enterprise (SME). For a definition of an SME, please see this guide.
• Businesses based in the Inner Moray Firth area must have at least 10 Full Time Equivalent Employees (FTEs). Businesses based in other parts of the Highlands and Islands region must employ at least 5 FTEs. There are no restrictions for social enterprise applicants.
• Have been trading for at least 12 months (start date determined by date of incorporation or registered with HMRC if an unincorporated organisation). All applicants will be required to undertake a carbon baselining exercise which involves providing data for the previous 12 months in operation.
• Applicants from most sectors can apply but there are exceptions, please see ‘who is not eligible’ below.
• Own its 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 Authority to implement the works detailed in your application. Evidence should be provided along with planning permissions and any other building consent required.
• Undertake its business activity in the Highlands and Islands and be liable for non-domestic rates.

Businesses and social enterprises that applied to the previous Green Grant Fund are welcome to apply to this new programme of funding.

Applicants must comply with HIE’s fair work conditions for grant support. For more information, please visit our fair work page. If you want to speak to someone about this requirement or need more information, please email enquiries@hient.co.uk

If your Expression of Interest proceeds to full application (stage 2) you will need to have measured your corporate carbon footprint for at least Scope 1 and Scope 2 emissions and scope 3*** if your project involves waste management. As a minimum we recommend using a recognised foot printing tool or methodology such as the Scottish Business Climate Collaboration. You may also wish to work with a consultant who can provide your business with a carbon emissions and savings report. We recommend
Business Energy Scotland. Social Enterprises can also access support from Local Energy Scotland