Which net zero funding route is right for my project?
Project type — generation, industrial decarbonisation, heat, transport, buildings — picks the scheme.
Key takeaway
Project type — generation, industrial decarbonisation, heat, transport, buildings — picks the scheme. This guide weighs Boiler Upgrade Scheme, Contracts for Difference (CfD), Green Heat Network Fund against your stage, funding type and timeline using verified FundingAtlas data, and explains when each is the right call.
The question
Project type — generation, industrial decarbonisation, heat, transport, buildings — picks the scheme.
Key considerations
The factors that should shape your decision before you commit operator hours to an application.
| Funding stage | any, growth |
|---|---|
| Funding type | grant, other |
| Funding amount | Boiler Upgrade Scheme: Funding levels vary and should be confirmed through the official scheme guidance. • Contracts for Difference (CfD): 15-year price-stabilising contracts • Green Heat Network Fund: Funding levels vary and should be confirmed through the official scheme guidance. • Public Sector Decarbonisation Scheme: Funding levels vary and should be confirmed through the official scheme guidance. |
| Eligibility | Property owners in England and Wales meeting BUS criteria. Installations via MCS-certified installers. |
| Timeline | Owner obtains valid EPC and addresses outstanding insulation recommendations → engages MCS-certified installer → installer performs heat-loss calculation and produces quote → installer submits voucher application → voucher issued (typically days to weeks) → installation completed inside voucher validity → installer claims redemption from Ofgem. Most projects complete within 3–6 months of engaging an installer. |
| Region | Some programmes are England-only, others run across the devolved nations or are restricted to combined-authority footprints. Check each official source. |
Recommended route
DESNZ runs distinct programmes for renewable generation (CfD), industrial decarbonisation (IETF), heat (BUS, GHNF), buildings (PSDS) and innovation (NZIP). Picking the wrong stream is one of the most common mistakes.
Alternative routes
Where the primary recommendation is not the right fit, these are the programmes most commonly considered alongside it.
- Contracts for Difference (CfD)
other · 15-year price-stabilising contracts
- Green Heat Network Fund
grant · Funding levels vary and should be confirmed through the official scheme guidance.
- Public Sector Decarbonisation Scheme
grant · Funding levels vary and should be confirmed through the official scheme guidance.
Common mistakes
- Starting with the largest scheme rather than the highest-fit scheme.
- Treating funding as a one-off project rather than a 24-month strategy.
- Underestimating the documentation effort: prior trading, prior R&D, finance pack.
- Missing the interaction between grant income and downstream R&D tax relief.
- Engaging a contingent-fee broker before checking whether the scheme is broker-eligible.
- Self-selecting out of a programme based on an optimistic read of eligibility.
Decision checklist
- Confirm your business stage, region and headcount against scheme thresholds.
- Map the next 24 months of funding need before applying to any one programme.
- Identify the official source for each programme on your shortlist.
- Quantify match-funding and staged-drawdown impact on cashflow.
- Check subsidy-control / de minimis ceilings across stacked awards.
- Model the interaction with R&D tax relief on subsidised costs.
- Decide whether the assessment timeline fits your delivery plan.
- Schedule the application in the calendar before committing operator hours.
Frequently asked questions
- What is this decision guide about?
- Project type — generation, industrial decarbonisation, heat, transport, buildings — picks the scheme.
- Which funding stage does this guide cover?
- Programmes referenced here target: any, growth.
- What types of funding are compared?
- This guide considers: grant, other.
- How much funding could I access?
- Boiler Upgrade Scheme: Funding levels vary and should be confirmed through the official scheme guidance.. Contracts for Difference (CfD): 15-year price-stabilising contracts. Green Heat Network Fund: Funding levels vary and should be confirmed through the official scheme guidance.. Public Sector Decarbonisation Scheme: Funding levels vary and should be confirmed through the official scheme guidance..
- Who is eligible for the recommended routes?
- Property owners in England and Wales meeting BUS criteria. Installations via MCS-certified installers.
- How long will it take to receive funding?
- Owner obtains valid EPC and addresses outstanding insulation recommendations → engages MCS-certified installer → installer performs heat-loss calculation and produces quote → installer submits voucher application → voucher issued (typically days to weeks) → installation completed inside voucher validity → installer claims redemption from Ofgem. Most projects complete within 3–6 months of engaging an installer.
- Can I apply to more than one of these programmes?
- Some combinations are permitted, others are restricted by subsidy-control rules or scheme-specific exclusivity clauses. Refer to the latest programme guidance before stacking applications.
- Will receiving a grant affect my R&D tax relief claim?
- It can. Grant-subsidised R&D expenditure is often relievable only at a reduced rate, and the interaction depends on which scheme funded which costs. FundingAtlas could not verify the interaction for every combination; confirm with a qualified adviser.
- What if my situation does not match any of the recommended routes?
- Use the Funding Finder to build a personalised shortlist, or request a Funding Strategy Review for a reviewer-led assessment.
- Where do I find the official source for each programme?
- Boiler Upgrade Scheme: https://www.gov.uk/apply-boiler-upgrade-scheme — Green Heat Network Fund: https://www.gov.uk/government/publications/green-heat-network-fund-ghnf — Public Sector Decarbonisation Scheme: https://www.salixfinance.co.uk/PSDS
Next steps
More decision guides