What is a business energy audit?
An energy audit for a business answers three questions: where does our energy go, what does it cost, and what would cut it? The European standard for energy audits, BS EN 16247-1, applies to all types of organisation, all forms of energy and all energy uses: buildings, industrial processes and transport.
A good audit covers:
- Your energy data: at least 12 months of verifiable meter readings and bills, ideally half-hourly electricity data, broken down by month.
- Where it goes: use and cost by building, process and major equipment, such as heating, cooling, lighting, compressed air, motors and refrigeration.
- The building: fabric, heating and ventilation systems, controls and how they're run and maintained.
- A benchmark against similar premises or processes, so you can see whether you're a heavy user.
- Your supply: current tariffs and providers, and any grid connection limits that affect solar, heat pumps or EV charging.
- Measures: from no-cost changes (settings, hours, behaviour) to capital projects (LED, solar, batteries, heat pumps, insulation), each with a cost, saving and payback period.
Light-touch review or detailed audit?
Audits range from a remote review to a detailed site audit. Business Energy Scotland, for example, starts with a phone or online consultation and says that, using satellite imagery, maps and your energy data, a site visit isn't needed in most cases. The Welsh grant is for a detailed "deep dive" by an independent expert. For processes, large sites or an investment decision, you'll want the detailed version.
Business energy audits: key facts
Who needs a business energy audit?
| Your organisation | Is an audit required? | What applies |
|---|---|---|
| Large undertaking: 250+ staff, or turnover over £44m and balance sheet over £38m | Yes, under ESOS | Phase 4 qualification date 31 December 2026; notify compliance by 5 December 2027; the audit must cover at least 95% of total energy use. See our ESOS Phase 4 guide. |
| SMEs and charities | No, it's voluntary | Free or funded audits in Scotland, Wales and Northern Ireland; local support in England. An audit report helps with loan applications. |
| Landlords of commercial property | No, but an EPC is | An EPC isn't an audit. Since 1 April 2023 you can't keep letting a commercial property in England or Wales rated below EPC E unless you register an exemption. In June 2026 the government dropped the planned EPC C by 2027 step. It now proposes EPC B from 2031 for buildings over 1,000 square metres, where cost-effective. See MEES and commercial EPCs. |
| Eligible manufacturers | No | The British Industrial Competitiveness Scheme cuts electricity levies without an audit, but an audit still shows where to cut the units you buy. |
Even when it's voluntary, an audit pays for itself only if you act on it. The money is in the measures, not the report.
Free and funded business energy audits in 2026, nation by nation
| Nation | Who runs it | What you get | Who's eligible |
|---|---|---|---|
| Scotland | Business Energy Scotland, fully funded by the Scottish Government | Free. A dedicated Business Energy Advisor, backed by technical specialists, and a report of recommendations, typically within 8 weeks. Renewables such as solar are checked too. | SMEs and charities improving premises in Scotland: under 250 full-time staff and turnover up to €50m (about £42m) and/or balance sheet up to €43m (about £36m), across the ownership group |
| Wales: advisor report | Business Wales Resource Efficiency Advisor | Fully funded. A business-specific report with next steps | Businesses in Wales: contact Business Wales on 0300 060 3000 |
| Wales: detailed audit grant | Green Business Loan Scheme (Development Bank of Wales and Welsh Government) | 50% of the cost of an accredited independent auditor, up to £10,000 (on £20,000 of costs) | SMEs trading for over two years with no adverse credit, such as CCJs |
| Northern Ireland | Invest NI Technical Consultancy | Invest NI funds a specialist consultant for a bespoke energy or resource efficiency project | Any NI business spending over £30,000 a year on energy and resources combined (heat, electricity, water, waste, raw materials) |
| England | No national scheme | Local programmes run by some councils and growth hubs. Availability varies by area | Ask your local growth hub, or the Business Support Service on 0800 998 1098 |
Scotland: Business Energy Scotland
Book a free 30 to 45 minute consultation online or call 0808 808 2268. Business Energy Scotland says it typically finds a 24% energy saving per business. At 30 October 2026 it quoted a wait of around four weeks to be assigned an advisor. The report doesn't count as a funding offer, but you can use it to apply for the SME Loan. Business Energy Scotland's SME Loan lends £1,000 to £130,000 interest-free, with cashback of up to £20,000 on energy-efficiency work and £10,000 on heat pumps. It is not taking new applications for solar PV. More on our Business Energy Scotland guide.
Wales: the energy audit grant
- Get quotes first. Choose a qualified consultant and get a written quote. Claims over £2,500 (so £5,000 or more of total cost) need two quotes.
- Apply before work starts. The Welsh Government handles applications, and the auditor mustn't start until your application is approved.
- Claim afterwards. Pay the invoice in full, then claim 50% back. The Development Bank says it aims to settle claims within 20 days.
The audit must meet the scheme's minimum report requirements (see the report checklist below). There's no obligation to take a Green Business Loan afterwards, but the same scheme offers discounted loans for the measures. More on our business energy support in Wales guide.
England: growth hubs and local schemes
There's no England-wide free audit. Some councils and growth hubs run their own programmes, but many were funded by the UK Shared Prosperity Fund, whose 2025-26 allocations can't pay for activity after 30 September 2026. Check that a local scheme is still taking applications before you count on it. Start with your local growth hub or the government's Business Support Service (0800 998 1098). The UK Business Climate Hub has free tools and quick wins you can use before an audit.
Energy audit standards: BS EN 16247, ISO 50002 and CIBSE TM22
| Standard | What it is | When it matters |
|---|---|---|
| BS EN 16247-1:2022 | Energy audits: general requirements, method and deliverables, for any organisation and any energy use. Separate parts cover buildings, industrial processes and transport. | The European benchmark for what an audit should contain. Useful to quote when you brief an auditor. |
| ISO 50002-1:2025 | Energy audits, Part 1: general requirements with guidance. It replaced ISO 50002:2014 in June 2025. | The international equivalent, for organisations of any size or sector. |
| CIBSE TM22 | Energy assessment and reporting method (2006): assesses an occupied building's energy performance from metered use | Building-focused assessments and benchmarking, for example offices |
| ESOS | The UK legal scheme for large organisations: 95% of energy use, 12 months of data, costs and benefits in pounds, lead assessor sign-off | Mandatory if you're a large undertaking |
| ISO 50001 | An energy management system, not an audit | Certified ISO 50001 covering all your energy use is one way to comply with ESOS |
Check the auditor's qualifications
Anyone can call themselves an energy auditor. The Development Bank of Wales lists qualifications it accepts as relevant, including: Association of Energy Engineers certified energy auditor or manager, the CIBSE Low Carbon Consultant register, Elmhurst and Stroma non-domestic energy assessors, Energy Institute chartered energy managers and registered consultants, the Energy Managers Association ESOS lead assessor register, IChemE chartered chemical engineers, and IEMA and IES lead assessors.
What a good energy audit report contains: a checklist
The Development Bank of Wales publishes minimum requirements for the audits it part-funds. They make a sound checklist for any audit, funded or not:
- About the business: staff numbers, operating hours, site location, building type and occupancy, sector and SIC code.
- Energy use and cost broken down by equipment or process, from at least 12 months of verifiable data, with a monthly breakdown.
- A review of your energy suppliers, the building envelope, services and controls, and energy management and maintenance.
- A benchmark of energy performance against similar premises or processes.
- Grid connection requirements and their costs, which decide whether bigger solar, heat pump or EV schemes are feasible.
- Savings opportunities with payback periods, prioritised from no-cost and low-cost changes to capital investments, with annual energy and CO2 savings for each.
- An action plan with next steps, suppliers to approach, and how to involve staff.
- Project support: soft market testing, specifications, planning and funding applications where needed.
ESOS reports go further: each opportunity needs an estimate in pounds of its costs and benefits, its payback and the annual cut in kWh and spend.
Before the auditor arrives: download 12 months of half-hourly electricity data and your gas or oil bills, list your opening hours and big equipment, and find your roof plans and lease. It speeds the audit up and makes the recommendations more precise.
After the audit: getting the recommended measures quoted
Audit paybacks are estimates. The next step is a firm quote for each capital measure, so you can approve the budget. These are the measures audits most often put on the list, and where to read up on each:
| Measure | Funding and tax that can help | Our guide |
|---|---|---|
| Solar panels | In England, on-site solar, and battery storage that mainly stores renewable power, are left out of your rateable value until 1 April 2035, so adding panels doesn't push up your business rates. Wales and Scotland have similar exemptions to 2035. | Commercial solar panels |
| LED lighting | Lighting is an integral feature for capital allowances, so the Annual Investment Allowance can usually cover it | Commercial LED lighting |
| Heat pumps | The Boiler Upgrade Scheme isn't just for homes. It pays £7,500 towards an air or ground source heat pump in a small non-domestic building, for systems up to 45kWth (70kWth with more than one heat pump). Until March 2027, a building heated by oil or LPG with no mains gas connection can get an extra £1,500, so £9,000 in total. The scheme now runs to 2030. | Commercial heat pumps |
| Battery storage | In England, batteries that mainly store renewable power share solar's business rates exemption to 2035 | Commercial battery storage |
| EV charging | The Workplace Charging Scheme pays up to £500 per socket (it went up from £350 on 1 April 2026), capped at 75% of costs, for up to 40 sockets across all your sites. That's up to £20,000. Funding runs until 31 March 2027, its final year. | Business EV charging |
- Capital allowances: Solar panels are special-rate plant for tax. The Annual Investment Allowance (£1 million a year) can write off the cost in year one. Above that, companies can claim the 50% first-year allowance. See solar panels and capital allowances.
- Loans: Business Energy Scotland's SME Loan lends £1,000 to £130,000 interest-free, with cashback of up to £20,000 on energy-efficiency work and £10,000 on heat pumps. It is not taking new applications for solar PV. The Development Bank of Wales Green Business Loan Scheme lends £1,000 to £1.5 million over up to 15 years, at a discounted rate and with no arrangement fee, for projects including solar PV and heat pumps. It also offers an energy audit grant of up to £10,000.
- Grants: There is no single national grant that pays for business solar, batteries or efficiency upgrades in England. The money comes from tax allowances, the business rates exemption, export payments, the Boiler Upgrade Scheme, the Workplace Charging Scheme and local or sector funds. See all business energy grants.
How we help after your energy audit (we're not energy assessors)
To be clear about our role: we don't carry out energy audits, we aren't energy assessors, and we don't run or apply for any audit scheme. For the audit itself, use Business Energy Scotland, Business Wales, Invest NI, your local growth hub or a qualified auditor. What we do is the next step. Once you know which measures you want to price, we pass your enquiry to one suitable installer that does commercial work, for a site survey and a quote.
What to send the installer
- The recommendations section of your audit report, or the measures you're shortlisting.
- Twelve months of electricity data, ideally half-hourly, for each site.
- Site addresses, roof plans and who owns or leases each building.
- Any loan or grant deadlines you're working to.
Next steps
- Send us the basics using the form. It takes two minutes.
- One installer contacts you to arrange a survey. You won't be passed round a list.
- Survey and quote, with firm costs and expected savings to check against your audit's estimates.
- Install, then track the savings against your audit baseline.
Sources checked 30 October 2026
- Business Energy Scotland: Get support (free for SMEs, fully funded by the Scottish Government)
- Development Bank of Wales: Green Business Loan Scheme (fully funded advisor report; energy audit grant up to £10,000)
- Development Bank of Wales: how to access energy audit funding (50% up to £10,000)
- Development Bank of Wales: minimum requirements for a part-funded energy audit
- Invest NI: Technical Consultancy support (energy and resource spend over £30,000)
- GOV.UK: Business support helplines (England, Scotland, Wales, NI) and growth hubs
- GOV.UK: UK Shared Prosperity Fund 2025-26 additional information (no funding for activity after 30 Sep 2026)
- UK Business Climate Hub: free tools and advice for SMEs
- GOV.UK: Energy Savings Opportunity Scheme (ESOS) (updated 2 Sep 2026)
- BSI: BS EN 16247-1:2022 Energy audits, general requirements
- ISO 50002-1:2025 Energy audits, Part 1: general requirements (replaces ISO 50002:2014)
- CIBSE TM22: Energy assessment and reporting methodology (2006)
- Business Energy Scotland: SME Loan
- GOV.UK: Non-domestic MEES landlord guidance (updated 5 May 2026)
- GOV.UK: Non-domestic MEES, EPC B implementation: interim response (18 Jun 2026)
- Energy Efficiency (Private Rented Property) Regulations 2015, reg. 41 (penalties)
- GOV.UK: EPCs for commercial property
- HMRC Capital Allowances Manual CA22335: solar panels are special rate
- GOV.UK: full expensing and the 50% first-year allowance
- GOV.UK: Annual Investment Allowance (£1 million)
- HMRC Capital Allowances Manual CA22320: integral features (lighting and heating systems) are special rate
- Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2022 (SI 2022/405)
- Wales: Plant and Machinery (Amendment) Regulations 2023
- Scotland: Valuation (Plant and Machinery) Amendment Regulations 2023
- GOV.UK: Boiler Upgrade Scheme (homes and business buildings)
- Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026: extension to 2030
- GOV.UK: Electric vehicle chargepoint grants (updated 1 Apr 2026)
- GOV.UK: Changes to chargepoint grant schemes from 1 April 2026 (updated 7 Jul 2026)
- GOV.UK: Workplace Charging Scheme for state-funded education institutions
Great British Energy is an independent guide. We are not affiliated with Great British Energy, the publicly owned energy company (gbe.gov.uk), HM Government, Ofgem or OZEV. Scheme rules and budgets change, so confirm the current position with the scheme administrator before you commit spend. We may receive a fee from the installer we introduce you to.