Seizing the Moment: A Fresh Route to Clean Energy Funding
Clean power storage projects face steep upfront costs. You’ve felt it. Investors want security. Government bodies want value. It can stall innovation. But there’s a new path. By blending Ofgem’s Cap & Floor scheme with SEIS and EIS relief, your clean energy venture can tap a potent mix of stability and tax perks. And with a platform like Oriel IPO, you get the exposure you need to attract eager investors.
This guide walks you through how to access UK power storage grants via Ofgem’s mechanism, while using SEIS/EIS incentives to sweeten the deal. You’ll learn practical steps to position your startup, engage angel investors and make your pitch shine. Ready to transform your fundraising? Revolutionizing your startup with UK power storage grants
Understanding Ofgem’s Cap & Floor Scheme
Ofgem’s Cap & Floor scheme is a support model designed to encourage large-scale investments in long duration electricity storage (LDES). Think of it as a safety net for both developers and consumers.
- Cap: A maximum revenue threshold. Any surplus above this goes back to households by way of lower bills.
- Floor: A guaranteed minimum return. If revenues dip, consumers top up the project’s income to this level.
- Designed for projects with at least eight hours of storage. That covers pumped hydro, liquid air, compressed air and next-gen flow batteries.
- Ensures value for money by filtering out inefficient proposals.
Why does this matter? Because it cuts perceived risk. Investors know they won’t hit an abyss if market prices tumble. Consumers enjoy protection from runaway profits. And your clean energy project can tap consistent revenue—a core requirement if you’re chasing UK power storage grants.
Unpacking SEIS and EIS Tax Reliefs
SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) are two of the UK’s most generous tax incentives for early-stage ventures. They reward investors with substantial reliefs, making it easier to raise growth capital.
Key benefits:
- SEIS
- 50% income tax relief on investments up to £100,000 per tax year
- Capital gains exemption on shares held for at least three years
- Loss relief for extra downside protection
- EIS
- 30% income tax relief on investments up to £1 million per tax year (or £2 million for knowledge-intensive companies)
- Deferral of capital gains tax liability
- Inheritance tax relief after two years
By highlighting these incentives in your pitch, you appeal to angels keen on tax-efficient deals. And if your clean energy startup meets the criteria, combining SEIS/EIS with UK power storage grants can make your proposition very compelling.
How Cap & Floor and SEIS/EIS Complement Each Other
You’ve got revenue security from Cap & Floor. You’ve got tax breaks from SEIS/EIS. Now tie them together. Here’s how:
-
Select the right project type.
Only LDES projects qualify for the cap and floor model. Confirm you exceed the eight-hour storage threshold. -
Plan your equity round.
Use SEIS for the first £150k-£250k of seed funding. Then switch to EIS for larger sums. This staged approach maximises tax relief. -
Apply to Ofgem’s window.
Prepare a clear business case. Highlight how SEIS/EIS backing ensures faster equity closes. Investors love low-risk, tax-advantaged returns. -
List on a specialised marketplace.
A curated platform like Oriel IPO connects you directly with angels craving SEIS/EIS plays.
The result? A win-win: you secure UK power storage grants stability, while investors enjoy generous tax reliefs. It makes that next funding round far smoother and more appealing.
Oriel IPO: The Commission-Free SEIS/EIS Hub
Finding the right investors is half the battle. Oriel IPO is an online investment marketplace built for SEIS/EIS deals. It’s commission-free, so you keep more of what you raise.
What you get:
- A vetted pool of angel investors focused on tax-efficient opportunities.
- Educational resources on SEIS, EIS and Cap & Floor processes.
- A centralised dashboard to track investor interest and commitments.
Oriel IPO doesn’t just list your pitch. It guides you through compliance checks. It flags any gaps in your SEIS/EIS eligibility. And it highlights how your project can tap UK power storage grants schemes.
Ready to meet investors who get clean energy? Tap into UK power storage grants with Oriel IPO
Step-by-Step Guide to Securing Funding
Launching a successful equity round around cap and floor and SEIS/EIS involves clear planning. Here’s a simple roadmap:
1. Validate Your Technology
- Conduct a pilot or feasibility study for your storage solution.
- Gather performance data: cycle life, efficiency, degradation.
2. Build Your Financial Model
- Project revenues under the floor and potential upside to the cap.
- Factor in SEIS/EIS tax reliefs as cash-flow advantages.
3. Prepare Your SEIS/EIS Documentation
- Draft articles of association compliant with HMRC guidelines.
- Get advance assurance from HMRC for SEIS or EIS.
4. Apply for Ofgem’s Cap & Floor Window
- Submit your detailed project plan by the deadline.
- Highlight investor protection and customer benefits.
5. Launch Equity Round on Oriel IPO
- Create an investor deck emphasising tax reliefs and revenue security.
- Engage the Oriel IPO vetting team to smooth your listing.
- Track investor interest and seal commitments.
The Bigger Picture: Clean Power Pathways
Ofgem’s scheme is part of a broader drive. The UK government wants 20GW of long duration storage by 2050. That’s enough to cut system costs by up to £24 billion. And it will halve curtailment of cheap renewables.
Meanwhile, the National Energy Systems Operator (NESO) sees a need for at least 2.7GW by 2035. The demand is growing. Policy is on your side. Investor confidence is rising. And British startups can capitalise on these trends.
By aligning your project with policy targets, you stand out when seeking UK power storage grants. You prove you’re not just chasing profit—you’re building grid resilience.
Common Pitfalls and How to Avoid Them
Even with great incentives, mistakes happen.
- Neglecting due diligence on SEIS/EIS requirements.
- Underestimating construction or permitting delays.
- Failing to engage community stakeholders early.
- Relying on a single funding source.
A robust approach blends:
- Clear compliance checks.
- Conservative timelines.
- Multiple investor channels.
- Ongoing dialogue with Ofgem and local authorities.
Final Thoughts and Next Steps
Clean energy startups have a rare opening. Ofgem’s Cap & Floor scheme and UK power storage grants bring revenue certainty. SEIS/EIS delivers tax-advantaged capital. And platforms like Oriel IPO streamline the match-making process.
Don’t let funding hurdles hold you back. Follow the steps above. Partner with Oriel IPO. And position your venture at the forefront of Britain’s energy transition.
Join the Oriel IPO marketplace to access UK power storage grants
We’re living through a historic moment in British energy. With the right mix of policy support and investor appetite, your clean power storage idea can spring to life. Let’s get the next generation of long duration storage built—in time to meet net zero.
