Ofgem's £450m fund will be made available to energy network companies that are striving to make homes and businesses as green as possible.
Ofgem has said the fund will be available over the next five years, but could be extended if strong plans are suggested to make it worthwhile.
In order for projects to qualify for grant funding, Ofgem has said ideas need to be "bold and ambitious," be able to be rolled out across the UK, and could range from heat pump installations to developing battery storage technology.
Jonathan Brearley, Ofgem’s chief executive, said:
"What we need, more than ever, to reduce greenhouse gas emissions and reach net zero, is innovation. The strategic innovation fund means cutting-edge ideas and new technologies become a reality, helping us find greener ways to travel, and to heat and power Britain at low cost."
The government will start offering carbon reduction workshops and "practical net zero advice" to UK businesses from today, which will be run by the net zero certification group Planet Mark.
Researchers have seen a 12.4% drop in CO2 emissions from global businesses in 30 countries during Covid lockdowns, which is a result from people being kept out of offices and shops. However, emissions have since bounced back which has put pressure on companies and households to take further action to ensure a greener future.