Energy savings opportunity scheme (ESOS): find out if you qualify and how to comply Grant

About this grant

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for large UK undertakings that meet qualifying criteria. Organizations that qualify must carry out an assessment every four years to audit energy used by their buildings, industrial processes, and transport. The assessment is designed to identify tailored and cost-effective measures that allow participating businesses to save energy and achieve carbon and cost savings. The scheme applies to large UK undertakings and their corporate groups, including businesses, not-for-profit bodies, and other non-public sector undertakings that meet the size threshold. For phase 4 (qualification date 31 December 2026), organizations must comply by submitting a notification of compliance by 5 December 2027, with assessments covering significant energy consumption areas representing at least 95% of total energy use. The scheme requires completion of energy audits or ISO 50001 certifications, identification of energy saving opportunities, and submission of compliance notifications via the MESOS online system with board-level sign-off.

Eligibility

Organizations qualify for ESOS phase 4 if on 31 December 2026 they are a large undertaking, defined as any UK company that either employs 250 or more people or has an annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million. Employees include those employed under contracts of service, owners, managers, and partners, regardless of contracted hours or status. Corporate groups qualify if at least one UK group member meets the large undertaking definition. UK registered establishments of overseas companies must participate if any other part of their global corporate group meets qualifying criteria. Public sector organizations do not usually need to comply. If an organization previously qualified but no longer does, it must inform its regulator.

Key requirements

• ✓Business must meet ESOS qualification criteria (typically large enterprises with 250+ employees or turnover >€50M and balance sheet >€25M)
• ✓Mandatory participation for qualifying organisations; non-compliance incurs penalties
• ✓Must conduct energy audit or implement ISO 50001 energy management system
• ✓Must identify and report energy-saving opportunities to meet compliance deadlines

Funder contact

The notice names a programme contact you can speak to before applying.

Frequently asked questions

When is the Energy savings opportunity scheme (ESOS): find out if you qualify and how to comply deadline?

Applications close 5 Dec 2027 23:59.

Who can apply for Energy savings opportunity scheme (ESOS): find out if you qualify and how to comply?

Eligibility covers organisations in GB; large-company, sme, nonprofit, local-authority. See the eligibility criteria above for the full conditions.

Relevant sectors

About this sector

Energy efficiency funding covers building retrofits, industrial process upgrades, heat recovery, efficient equipment and demand reduction. It arrives as grants for audits and capital works, as support schemes run by agencies and utilities or as public tenders for retrofit and energy services. Applicants usually need a baseline of current energy use and a measured saving.