Website of the UK government

What is microgeneration?

Microgeneration is a term used to describe the generation of low carbon heat and power by individuals, businesses and communities to meet their own needs. It covers a range of technologies like wind, solar and hydro power.

• Generating and using greener energy

The microgeneration grant

Grants for the installation of microgeneration technologies are available to public sector buildings (including schools, hospitals, housing associations and local authorities) and charities. The grants cover a proportion (up to 50 per cent) of the cost of installing the technologies, and you can claim up to £1 million per site.

Grants are provided by the Department for Business, Innovation and Skills (BIS). They are delivered through the Building Research Establishment as part of the Low Carbon Buildings Programme Phase 2 (LCBP2).

How much are the grants?

Grant levels for the not-for-profit sector vary according to technology and are applied to total installation costs (excluding VAT) as follows:

Technology	Percentage
Biomass	35 per cent
Ground source heat pumps	35 per cent
Solar photovoltaics	50 per cent
Solar thermal	30 per cent
Wind turbines	30 per cent

Organisations can apply for a maximum of £1 million per site. A site may include more than one property and a maximum of three eligible technologies may be grant-assisted at each property. One organisation can make multiple applications for different sites.

The technology must be supplied and installed by LCBP2 approved framework suppliers.

• Find a framework supplier Opens new window

How to apply for a grant

The grants are available through the Department of Business, Innovation and Skills. You can either download the application form and guidance notes from their website or apply online.

• Apply online for a community grant Opens new window

• Download a community grant application form Opens new window

Other grants for microgeneration

Groups that generate energy can also access other rewards for doing so:

• you can receive Renewable Obligation Certificates (ROCs), or other green energy certificates, which entitle you to money for generating energy
• you may be able to claim other grants and should contact your local council or Regional Development Agency
• ask your electricity supplier for information on selling surplus electricity to the national grid
• some banks and other organisations are offering ‘green loans’ to help with installation costs
  

• Renewable Obligation Certificates Opens new window

• Find your local council

• Find your Regional Development Agency Opens new window

More useful links

• Low Carbon Buildings Programme Phase 2 Opens new window

• Microgeneration case studies in the not-for-profit sector Opens new window

• Generate your own energy - Energy Saving Trust Opens new window