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UK Lighting Energy Efficiency Grants for Industrial Upgrades in 2025–26

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For UK industrial businesses, lighting is not just a utility, it’s a major line item in energy use. But with the right upgrades, lighting can also become one of the biggest opportunities for cost savings and emissions reduction. As we move through 2025–26, government-backed grant schemes make this the right time to invest in industrial LED lighting. EcoLighting UK is ideally placed to guide businesses through the funding, regulatory, and technical journey to a smarter, greener lighting solution.

The importance of lighting in industrial energy consumption

In many industrial settings, warehouses, manufacturing plants, large-scale storage facilities, lighting accounts for a significant proportion of electricity demand. Older systems using fluorescent tubes, high-intensity discharge lamps, or inefficient fittings not only consume more power but require higher maintenance and offer poorer light quality.

By contrast, LED lighting, combined with modern controls (sensors, dimmers, occupancy detectors) offers powerful advantages, including major energy saving, improved lighting quality and lower maintenance.

  • Major energy savings – More efficient light output per watt, plus the ability to switch off or dim when areas are not in use.
  • Improved light quality and safety – Better uniformity, more consistent brightness, and modern optical design improve workspace safety and productivity.
  • Lower maintenance – LEDs last far longer than conventional lamps, reducing replacement costs and downtime.
  • Regulatory readiness – Upgrades can help meet or exceed building regulations and energy performance standards.

EcoLighting UK specialises in delivering bespoke, energy-efficient LED lighting for industrial and commercial environments. Their designs use UK-manufactured luminaires and take into account standards such as BS EN 12464, CIBSE LG, and Part L building regulations. 

What grant funding is available in 2025–26

One of the most significant opportunities for UK businesses right now is through the Business Energy Advice Service (BEAS). This grant scheme is designed to help SMEs invest in energy-saving measures — including lighting upgrades.

Key points about BEAS in 2025–26:

  • Grants range from £1,000 to £100,000, and are 50% match-funded.
  • Eligible measures include energy-efficient lighting, such as LED fittings, control systems, and sensors.
  • To qualify, businesses must first undertake an independent energy audit, which identifies potential improvements. 
  • Payments are typically made after the work is completed — meaning businesses must have some capital available upfront.
  • The scheme is currently active for certain regions, including the West Midlands and other local authority areas.
energy-efficient lighting

Complementary financial incentives: tax reliefs and allowances

Beyond direct grants, UK businesses can harness other financial mechanisms to make lighting upgrades more attractive:

  • Enhanced Capital Allowances (ECAs): Energy-efficient lighting equipment may qualify, allowing businesses to deduct the full cost of the qualifying plant and machinery from their taxable profits in the same year.
  • First-year allowances / super-deduction: Depending on prevailing tax rules, companies may accelerate write-offs for energy-saving equipment, improving cash flow and making LED upgrades more financially compelling.

Always consult a tax adviser for the most current, relevant tax reliefs for your business and lighting investment.

Driving Regulatory and Compliance in 2025

Upgrading lighting isn’t just about saving money, it’s also a way to align with regulatory expectations:

  1. Energy performance regulations: Efficient lighting demonstrates a commitment to operational energy performance, which investors, insurers and clients increasingly scrutinise.
  2. Building standards: Lighting designs from EcoLighting conform to recommended guidelines (e.g., CIBSE, BS EN) and relevant building regulation (Part L).

Future-proofing: Smart lighting systems with sensors, dimming, and control capabilities help businesses adapt to tighter energy use and carbon reporting requirements.

BEAS

How BEAS funding might support lighting projects

Here are three hypothetical case studies, scenarios that reflect the kinds of benefits EcoLighting UK could help deliver with BEAS grant support:

  1. Warehouse Operator (Midlands): A 120,000 sq ft warehouse currently uses outdated high-bay HID lighting. EcoLighting designs a full LED retrofit with motion sensors and daylight dimming. The total project cost is £80,000. Under BEAS, the business secures a £40,000 grant. With improved efficiency, the business reduces annual electricity costs by 60%, achieving a payback in under 2 years.
  2. Manufacturer (Staffordshire): On a production floor with long operating hours, lighting represents a large part of the electricity bill. EcoLighting proposes a mixed solution: high-output LED modules, lighting controls, and emergency lighting upgrade. Project costs £120,000; grant covers £60,000. The manufacturer cuts energy use by 55%, and lowers maintenance downtime.
  3. Cold Storage Facility (Warwickshire): The facility currently has linear fluorescent lighting, which is inefficient and prone to frequent failure in low temperatures. EcoLighting replaces the system with IP-rated LED linear fittings and occupancy sensors. Total project cost: £50,000, with a BEAS grant of £25,000. The business sees immediate lighting energy savings and reduces the risk of breakdowns in critical storage zones.

Why EcoLighting UK is the right partner for grant-backed lighting upgrades

Navigating grants, designing efficient lighting systems, and delivering installations across industrial sites requires expertise. EcoLighting UK is particularly well-suited for this in several ways:

  • Expert design and engineering: EcoLighting’s in-house team use advanced lighting software and comply with standards like CIBSE, LG and BS EN.
  • Turn-key delivery: From survey through installation to maintenance, EcoLighting handles everything with its in-house electrical and mechanical divisions.
  • Proven ROI: EcoLighting’s industrial and commercial lighting systems can reduce energy consumption by up to 70%.
  • High-quality, UK-made components: Many of EcoLighting’s luminaires are manufactured in the UK, ensuring high performance and reliability.
  • Sustainability & safety credentials: EcoLighting is ISO 9001 & ISO 14001 certified, and its lighting designs follow relevant health & safety and emergency-lighting regulations.

How to begin the upgrade journey

  1. Confirm grant eligibility: Check that your business qualifies for BEAS (SME status, energy usage, location).
  2. Book an energy assessment: Use BEAS to arrange a free audit, which will identify lighting upgrade potential.
  3. Work with EcoLighting to design your solution: Based on the audit, EcoLighting can propose a lighting scheme tailored to your facility, including LED types, control systems, and energy savings.
  4. Submit your BEAS grant application: EcoLighting can help you build the cost case, including quotes and projected savings.
  5. Install and validate: Once approved, installations can be completed, and grant funds claimed retrospectively.

Maintain and optimise: EcoLighting offers maintenance services to ensure your new lighting continues to deliver savings and efficiency.

Why action now matters in 2025–26

  • BEAS grants of up to £100,000 remain available through March 2026.
  • Regions are actively promoting industrial energy efficiency, making grant applications competitive yet accessible.
  • Lighting upgrades deliver long-term savings: once installed, energy-efficient systems pay back through lower energy and maintenance costs.

Investing now helps your business demonstrate commitment to sustainability, energy compliance, and operational resilience.

Now is the time to upgrade

In 2025–26, UK industrial businesses have a compelling opportunity: government-backed grant funding (like BEAS), combined with tax reliefs and strong regulatory motivation, align to make energy-efficient lighting upgrades a smart strategic move. By partnering with EcoLighting UK, companies can leverage expert design, turn-key installation, and real financial support — transforming old lighting into a high-performance, low-cost system that pays for itself quickly and contributes to sustainability goals.

If you’d like to explore what a lighting upgrade might look like for your facility, or understand how much grant funding you could access, get in touch with EcoLighting UK today. Their team can guide you through the assessment, application, and implementation process and help you deliver real savings and better lighting for years to come.

Testimonials

Cadburys

“It was the energy saving that was the key driver, we only committed to a 50% reduction in energy use, in practice it was nearer 70% resulting in annual savings of circa £70,000, If we had of stayed with the old system, this annual saving opportunity would have been lost forever”

Kevin McGlynn – Head of facilities Cadburys

Over 800 installations

We have a track record of working with Blue-Chip clients in this sector and have worked with many companies on over 800 projects during the last few years, and our expertise gives our customers that extra peace of mind that they will receive the right solution for their business.

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