Announcement follows another £35m package of seed funding for improving energy efficiency in buildings

The government has launched a £35m fund to support innovation in green technology by small and medium enterprises.

Energy secretary Ed Davey said: “The first wave is going to be in energy efficiency in buildings, things like advanced lighting, heat pumps, ventilation technologies and so on. This is a practical way that we can make sure we get to the low carbon economy.”

The funding will be spread over the next three years with SMEs able to apply for funding of up to £1m.

The £35m is part of a wider £200m innovation fund budget, which has already seen £35m allocated to the Department of Energy and Climate Change’s Buildings Innovation Programme - a programme that aims to drive down the costs of saving energy from buildings.