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BICS

Does BICS Apply to Construction Equipment Manufacturers?

Explore BICS eligibility for construction equipment manufacturers, including SIC and HS codes, supply-chain activities and mixed production.

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The British Industrial Competitiveness Scheme (BICS) exempts eligible manufacturers from the indirect costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market, with a value of up to £40 per megawatt hour (MWh).

But for construction equipment, whether a business qualifies depends heavily on what it makes and where it sits in the supply chain. Applications close on 30 November 2026, so now’s a good time to find out where you stand.

Why does the scheme matter to the sector?

Energy costs are a competitiveness issue for UK equipment manufacturers. The CEA’s June 2025 economic update put industrial electricity prices around 46% above the IEA median, and warned that this is making UK manufacturing less competitive.

BICS is one of the government’s responses, forming part of the Modern Industrial Strategy, and more than 10,000 manufacturers in Great Britain are expected to benefit.

What does a site need to qualify?

A site must meet four criteria. Failing any one of them means the application cannot succeed.

  • Registered company: The applicant must be registered at Companies House.
  • Eligible SIC code: The code must appear on the eligibility list. It can be the one on your Companies House record; you only need one eligible SIC code, if you have multiple.
  • Eligible HS code: The products made at the site must match an eligible six-digit Harmonised System (HS) code, also on the eligibility list. You’ll need to prove you manufacture those products as part of your application.
  • Minimum electricity use: Each site needs at least 33 MWh of grid electricity a year (tested as more than 16,500 kWh over the most recent six consecutive months).

The SIC code describes your industry, and the HS code describes what you actually make; you need both to qualify.

SIC codes can be found on the eligibility list published by the government with only the first 4 digits, although your code on your Companies House record will be 5 digits. Your HS codes can usually be found on any import or export documentation, or you can search the government’s Trade Tariff tool and take the first 6 digits.

Where does construction equipment sit?

Construction equipment manufacturers can qualify for BICS in some cases, but it’s not a blanket qualification.

In practice, a business whose only activity is assembling complete machines should not expect to qualify on that activity alone. Distributors and service providers are also not manufacturers, so they fall outside the scheme. This is worth knowing before you spend time on an application.

However, the list is broad, and much of the supply chain is on it. Using an , is the easiest way to confirm your eligibility.

Here is how that looks for typical businesses in the sector:

  • Machine builders (excavators, loaders and bulldozers): these are classified under SIC 2892 and HS 8429, and neither is on the eligibility list, so assembly alone does not qualify. The question to ask is whether the site makes any other products that are on the list.
  • Crane and lifting equipment makers: crane products are on the product list, including tower cranes, self-propelled cranes and truck-mounted cranes (HS 8426), as are rough terrain fork-lift trucks (HS 8427.20). The usual SIC code for lifting and handling equipment (SIC 2822) is not, so these businesses need an eligible SIC code that genuinely describes what the site does. The next section explains how.
  • Hydraulics and engine specialists: businesses making hydraulic cylinders, motors, valves and pumps, or diesel engines (other than vehicle or marine), fall under eligible SIC codes (SIC 2811 to 2814), and their products appear on the HS list.
  • Foundries, forges and machine shops supplying machine builders: casting (SIC 2451 to 2454), forging (SIC 2550), machining (SIC 2562) and coating (SIC 2561) are all eligible activities. Whether the parts qualify depends on the product, such as forged iron and steel articles (HS 7326.19) or bearing housings (HS 8483.30), so check what you actually make against the list.
  • Attachment makers (buckets, breakers and grabs): these businesses may sit under fabricated metal products (SIC 2599) or special-purpose machinery (SIC 2899), both of which are eligible. Eligibility then turns on the HS code of each product, which varies by attachment.
  • Electrification suppliers: makers of electric motors (HS 8501) and lithium-ion batteries (HS 8507.60) fall under eligible SIC codes 2711 and 2720, which is relevant for manufacturers supplying electric and hybrid machines.
  • Tyre makers: tyres for construction, mining and industrial handling machines (HS 4011.80) are listed, under SIC 2211.

What if your main activity is out of scope?

In some cases, you’ll find that you manufacture a product that qualifies, but your SIC code doesn’t feature on the list. Many manufacturers register under the code for their main activity but carry out other work at the same site.

If some of your work falls under an eligible SIC code, such as machining (2562), forging (2550) or casting (2451 to 2454), the code can be added to your Companies House record through a confirmation statement.

Machinery for mining, quarrying and construction (SIC 2892) and lifting and handling equipment (SIC 2822) are not on the eligibility list. However, despite the SIC codes not being on the list, some eligible products might fall under those SIC codes. For example, the HS code for Tower Cranes (HS 8426.20) is eligible, despite the SIC code for manufacturing lifting equipment not qualifying. In this case, it’s worth seeing if another SIC code that does qualify could be added to your Companies House record.

Changing a code does not make you eligible by itself. The activity must genuinely take place at the site, and the products it produces must also match an eligible HS code.

What if you make some eligible and some ineligible products?

BICS is a banded relief, pro-rated depending on the amount of energy used on eligible production.

Ineligible production on the same site counts against you in the pro-rating:

  • 25% or less of grid electricity supporting eligible products unfortunately gives no exemption
  • Above 25% and under 50% of grid electricity supporting eligible products gives you a 50% exemption
  • 50% or more of grid electricity supporting eligible products gives you a 100% exemption

You’ll need to evidence your apportionment method and explain it in a free-text box within the application.

For example: Company A makes hydraulic cylinders at a single site. Its activity falls under SIC 2812 and its products match HS 8412.21. It also machines brackets that are not on the product list. The company works out that 70% of its grid electricity supports the cylinders, which puts it in the 100% tier, because the proportion is 50% or more.

What should you do before 30 November?

  • Check your codes. Compare your SIC and six-digit HS codes with the government’s list.
  • Gather your bills. You need your most recent six consecutive months of electricity bills for each site.
  • Pull production records. ERP records, production logs or quality control records, aggregated monthly to prove your product’s eligibility.
  • Review before submitting. Applications cannot be amended once sent.

If your application succeeds, you will be told by email in January 2027. Exemptions from the Renewables Obligation and Feed-in Tariffs start in April 2027, and the Capacity Market exemption follows in October 2027.

Key takeaways

  • Both codes matter: Your SIC code tests your industry, and your HS code tests your product.
  • Complete machines are largely out of scope: SIC 2892 and 2822 are not listed.
  • The supply chain is where eligibility sits: Engines, hydraulics, pumps, valves, gears, castings, machining, motors, batteries and tyres all appear.
  • Codes can be added: If in-scope activity genuinely takes place at your site, add an eligible SIC code through a confirmation statement.

If you’re unsure whether your site, products or classification codes fall within scope, speak to the Energy Relief Vault team and they’ll help you confirm where you stand. Energy Relief Vault also offers a .