The Scottish Government has launched a £4 million cashback grant scheme to encourage small and medium-sized businesses (SMEs) to improve energy efficiency and install renewable heating technologies.

Under the new scheme, £3 million will be allocated for SMEs to apply for a 75% cashback grant up to £10,000 for renewable heat measures and £1 million for a 30% cashback grant for energy efficiency measures up to £10,000.

Both incentives operate on a first-come, first-served basis until the end of financial year 2020/21.

Scottish Energy Minister Paul Wheelhouse said: “We recognise that SMEs often do not have the resources available to invest in energy efficiency and renewable heating measures, an issue that has been compounded by additional financial pressures caused by the coronavirus (COVID-19) pandemic.

“Through this new cashback scheme, SMEs could receive up to £20,000 of Scottish Government support, helping businesses invest in their future by improving energy efficiency, reducing energy usage and ultimately increasing their competitiveness.

“This investment is part of our ongoing action to reduce emissions from heating our buildings and to support a green economic recovery from COVID-19.”