Birmingham City Council has secured £15 million for a programme that will help small and medium-sized businesses in the region invest in energy efficiency, the council has announced. The money follows an earlier scheme that ran during 2025/26 and supported 249 businesses. Applications for the new three-year programme, called BEAS 3, are now open.
Key points
- Funding total — £15 million for a three-year programme.
- Yearly grants — about £5 million a year to roughly 125 small and medium-sized firms.
- Energy savings — expected to deliver 11.19 million kWh of annual energy savings and cut carbon emissions by around 1,547 tonnes CO₂e per year.
- Previous scheme — supported 249 businesses and unlocked nearly £20 million of investment.
The earlier programme helped firms reduce operating costs, improve productivity and strengthen long-term resilience, the council said. It deployed £9.23 million in public grants and leveraged £10.04 million of private sector investment. Businesses used the support to install energy-efficient equipment, renewable energy technologies and operational improvements.
Each year, the new programme is expected to invest £5 million in grant funding into approximately 125 SMEs. It aims to generate at least £5 million of private sector match funding, create more than £10 million of annual business investment and deliver around £2.42 million of annual energy cost savings. The council also expects a reduction in carbon emissions of about 1,547 tonnes CO₂e per year.
"I am delighted that the council has secured this funding, which further demonstrates our ability to attract, secure and deliver major externally funded projects that help businesses grow, invest, create jobs and contribute towards the city's climate change ambitions," said Cllr Julien Pritchard, Deputy Leader of Birmingham City Council.
Pritchard also encouraged other businesses to apply, saying the support can help them cut costs, improve productivity and invest in their future.
What it means in practice
For small firms in and around Birmingham, the new round of funding could mean grants to replace old equipment or install renewable energy, cutting bills over time. If your business spends a lot on energy, it may be worth checking whether you qualify.
- Check eligibility — the programme is aimed at SMEs in the region, so look at the council's website for details.
- Prepare your application — you may need to show how the investment will reduce energy use and costs.
- Act early — grants are limited and the programme expects to support about 125 businesses a year.
