Using interest-free loans worth over £50 million could help public sector organisations buy renewable energy equipment to produce cheap business energy.
The use of public sector land and buildings could dramatically increase the amount of clean electricity produced and enable both businesses and homes to save money through cheaper bills and reduce their carbon footprints.
Funds are available by way of both the Carbon Trust and Salix Finance, while the money can be spent installing any one of around 80 microgeneration resources.
Alastair Keir, chief executive officer of Salix Finance, said: "This new loan funding will enable us to significantly increase the support we can provide to public sector bodies to reduce their energy spend and their CO2 emissions."
Joan Ruddock, minister for energy and climate change, added that the loans could help save nearly £15 million a year in energy bills.
The government plans to safeguard the UK's energy future through a combination of nuclear power and renewable energy, as well as possibly using fossil fuel stations equipped with carbon capture and storage technology.
If you want to find out more about business energy and how you could save up to 50 per cent on your business energy bills, click here.