Solar Energy Grants for UK Businesses: What Funding Is Available in 2026?

As of September 2026, no open national grant pays for solar panels on private-sector commercial buildings in Great Britain. Business support comes mainly through tax relief, a business rates exemption, Smart Export Guarantee payments and finance structures such as PPAs. Grants exist for narrower cases, including EV chargepoints and some public sector buildings.

This guide is for finance directors, operations and facilities managers, and sustainability leads weighing a commercial solar investment. It explains which schemes have closed, which support is still available, how much tax relief is worth, and how to check your position before you commit.

Funding rules change often. Confirm dates and eligibility on GOV.UK or with the scheme operator before you apply.

Key Takeaways

• Few grants exist. The IETF closed in July 2025 with no successor, and most remaining grants target EV chargepoints or public sector bodies.
• AIA is the main lever. It gives 100% relief on up to £1 million a year, worth the cost multiplied by your tax rate: £30,000 on a £120,000 system at 25%.
• Full expensing usually does not apply to solar. Advisers treat it as special-rate expenditure. Confirm with your accountant.
• Business rates are exempt in England for eligible on-site solar and storage until 31 March 2035.
• SEG is income, not a grant. Suppliers set the rate, with commercial examples from about 3p to 15p per kWh, so design for self-consumption first.
• The WCS pays up to £500 per EV socket until 31 March 2027.
• If tax capacity or tenure is weak, a PPA, lease to own or green loan can fund the project.

Are there solar panel grants for businesses in the UK in 2026?

Direct grants for commercial solar are scarce in 2026. The main national fund that once supported industrial energy projects, the Industrial Energy Transformation Fund, has closed and has no successor. Business solar grants that remain are narrow: EV chargepoint funding, public sector programmes and a few devolved or regional schemes.

Most of the financial benefit for a private business comes from how the purchase is treated for tax and rates, and from what the system earns or saves once it is running. That is why the sections below cover tax relief and export income before finance options. If a guide still lists the IETF as an open route, it is out of date.

What happened to the Industrial Energy Transformation Fund (IETF)?

The IETF closed in July 2025. According to GOV.UK, the government decided after the Spending Review not to extend it, cancelled the second window of Phase 3 and does not plan a successor fund. Projects already awarded in Phases 1 and 2 and the first Phase 3 window remain fully funded.

The fund was aimed at high energy-use industrial sites investing in energy efficiency and low-carbon technology, not general commercial rooftop solar. GOV.UK published a final evaluation of Phases 1 and 2 in January 2026. For most businesses today, the IETF is history rather than an option.

Which solar funding and financial support can UK businesses use in 2026?

UK businesses can currently use tax relief, a business rates exemption, export payments and a small number of targeted grants. The table shows the status of each route in September 2026 and what it does for a solar project.

Finance products such as PPAs, lease to own and green loans are not grants, but they can remove most of the upfront cost. They are covered further down.

How much can capital allowances reduce the cost of commercial solar?

Capital allowances let a business deduct qualifying equipment costs from its taxable profits, which reduces its tax bill. Under the Annual Investment Allowance, a business can deduct up to £1 million of qualifying plant and machinery spend per year, so most commercial solar systems can be relieved in full in the year of purchase. The cash benefit is the cost multiplied by the tax rate.

How it works. The government made the £1 million AIA permanent, and it applies to companies, sole traders and most partnerships. The Corporation Tax rate is 25% for profits above £250,000 and 19% for profits of £50,000 or less, with marginal relief in between.

Why full expensing usually does not apply. Full expensing gives companies a 100% first-year allowance on main-rate plant and machinery, and it is permanent. Advisers generally treat commercial solar PV as special-rate expenditure, which is outside full expensing. Special-rate assets can instead qualify for a 50% first-year allowance for companies, with the balance written down at 6% a year. Above the £1 million AIA limit, that distinction matters. Your accountant should confirm the classification for your installation.

What changed in 2026. From 1 April 2026, the writing down allowance on the main pool fell from 18% to 14% for companies, and a new 40% first-year allowance for main-rate spending began on 1 January 2026. Neither is usually the deciding factor for solar, because AIA is the stronger relief for most projects.

Worked example (illustrative). The figures below assume a £120,000 system (excluding VAT), that the full cost qualifies for AIA, and annual bill savings plus export income of £15,000. Your own figures will differ. Payback here ignores finance costs, maintenance and panel degradation.

What this means. The relief reduces tax payable rather than paying money back, so it only helps a business with enough taxable profit to absorb it. A loss-making or low-profit company gains little in year one. Under a PPA, the funder owns the system and normally claims the allowances, not the site host.

VAT-registered businesses can normally reclaim the 20% VAT on a commercial installation, so the figures above exclude it.

EV chargepoints have their own relief. A 100% first-year allowance for chargepoints has been extended to 31 March 2027 for companies (5 April 2027 for income tax).

Do businesses pay business rates on solar panels?

Generally no. In England, plant and machinery used for on-site renewable generation and storage is excluded from rateable value from 1 April 2022 to 31 March 2035, according to the explanatory memorandum to the 2022 regulations. The Valuation Office Agency removes eligible items automatically. Scotland has a separate exception running from 1 April 2023 to 31 March 2035, set out in its policy note.

For a system with a 25-year life, note that the exemption is scheduled to end in 2035. Check the position in Wales and Northern Ireland with the relevant rating authority.

How does the Smart Export Guarantee work for businesses?

The Smart Export Guarantee (SEG) requires licensed electricity suppliers to pay for surplus electricity that eligible generators export to the grid. Ofgem says it covers solar PV up to 5MW, and suppliers set the rate, which must be above zero. SEG is export income, not a grant, and it applies in Great Britain only.

What you need. A grid-connected system, an export meter and an export MPAN, and certification such as MCS or an equivalent. Larger systems need Distribution Network Operator (DNO) approval under the G99 process before they export. Your installer should manage this.

What it pays. There is no single national rate. One July 2026 comparison listed commercial examples from about 3p to 15p per kWh, with higher rates often tied to buying import electricity or the installation from the same company. Some larger commercial generators can also consider an export PPA instead.

What this means. Exported electricity is typically worth less than the electricity you avoid buying, so sizing and siting a system for on-site use usually matters more than export income. Battery storage can shift surplus generation to later demand. For the trade-offs, see our comparison of solar panels only vs solar with battery storage. SEG replaced the export element of the Feed-in Tariff on 1 January 2020.

Is there a grant for EV charging alongside solar?

Yes. The Workplace Charging Scheme, run by the Office for Zero Emission Vehicles (OZEV), covers up to 75% of the cost of buying and installing EV chargepoints, capped at £500 per socket and 40 sockets per applicant. It is open to businesses, charities and public sector bodies across the UK, and funding is confirmed until 31 March 2027, described as a final year.

Evidence. GOV.UK Find a grant states the cap rose from £350 to £500 per socket for installations completed on or after 1 April 2026. Applicants need dedicated off-street parking for staff or fleet use (business chargepoints cannot be for customer-only use), and must use an authorised installer. Vouchers are valid for 180 days.

What this means. The grant is small next to the cost of a solar array, but it improves the case for pairing solar carports or rooftop generation with on-site charging. See our EV charging and solar carport pages.

What solar funding exists for public sector buildings, schools and farms?

Public sector bodies have access to routes that private businesses do not. None of them is open to a typical commercial company.

• Public Sector Decarbonisation Scheme (PSDS). Delivered by Salix Finance for DESNZ, it is heat-led. Under Phase 4 criteria, solar panels are eligible only as an energy efficiency measure in a building served by a PSDS-funded low-carbon heating source.
• Great British Energy. Its first programme, announced in March 2025, funds rooftop solar on around 200 schools and 200 hospitals. Read our summary of the schools and hospitals programme, or see our schools, colleges and universities and public sector buildings pages.
• Scotland. The Business Energy Scotland SME Loan offers interest-free loans of up to £100,000 for renewable or energy efficiency projects, but its FAQs (May 2026) state it is not accepting new solar PV applications. Check before relying on it.
• Farms in England. Defra’s Farming Equipment and Technology Fund 2026 offered £1,000 to £25,000 per grant theme, and its application window has closed. Confirm current Defra funding and item lists before assuming solar PV qualifies. See our farms and agriculture page.

Who is eligible for business solar funding?

Eligibility depends on the route, but the same six checks apply to most business solar grants and reliefs.

• Tax position: Capital allowances only help a business with taxable profits to offset.
• Location: SEG covers Great Britain only, the WCS covers the whole UK, and rates and devolved schemes differ by nation.
• Sector and status: Public sector schemes exclude private companies. The WCS has separate rules for state-funded schools.
• Premises: You usually need to own the site or have landlord consent. A PPA requires a roof lease or access agreement.
• Subsidy control: Public grants count towards limits. The WCS, for example, caps minimal financial assistance at £315,000 over three financial years.
• Technical readiness: SEG needs metering and certification, and larger systems need DNO approval under G99.

How do you check which funding applies to your business?

Start with your tax position and location, then confirm open schemes, then test the project’s economics. Following these five steps avoids wasted applications.

1. Confirm your position. Note your legal entity, expected taxable profit, nation, and whether you own or lease the building.
2. Check open schemes. Search GOV.UK Find a grant and the operator pages for OZEV, Salix and Business Energy Scotland. Read the rules on when work may start, because some schemes only fund work after approval.
3. Commission a feasibility assessment. Use half-hourly consumption data to size the system, and assess roof condition, structure and grid capacity. Our solar output calculator gives a first estimate, and our consultancy service covers full feasibility.
4. Ask your accountant to confirm the allowances. Check the classification of the system and the timing of the claim before you sign a contract.
5. Register for export payments. Once the system is commissioned, apply for a SEG tariff and compare supplier offers.

What can a business do if no grant applies?

If no grant applies, four finance structures can fund a solar project, and each allocates ownership, risk and tax relief differently. Compare them on upfront cost, who owns the system and who claims the allowances.

Energy performance contracting is a fifth option: a contractor installs the system and is paid from the savings it delivers. Explore all routes on our finance options page.

What should a business check before relying on solar funding?

Check that the project suits your energy profile, tenure and tax position before building a business case around any relief.

1. Solar usually suits sites with strong daytime demand, a taxpaying owner or long lease, and a sound roof or available land.
2. Solar may not suit sites with short lease terms, roofs that need replacing soon, low daytime demand or limited taxable profit. A PPA or lease structure may work better in those cases.
3. Take specialist advice for larger systems needing G99 approval, listed buildings or conservation areas, multi-site portfolios, and any grant that triggers subsidy control limits.

Solar also cuts Scope 2 emissions from purchased electricity, which supports ESG reporting. See reducing your company carbon footprint.

What is changing in UK solar funding?

Several dates matter for planning:

• July 2025: The IETF closed, with no successor fund planned.
• 1 January 2026: A new 40% first-year allowance for main-rate spending began. It is usually not relevant to solar.
• 1 April 2026: The main-pool writing down allowance fell from 18% to 14%, and the WCS grant rose to £500 per socket.
• 31 March 2027: The WCS and the 100% first-year allowance for EV chargepoints are scheduled to end.
• 31 March 2035: The business rates exemption for on-site renewables is scheduled to end.

How do you choose an installer who can help with funding?

A good installer designs the system, knows which reliefs and schemes apply, and stays involved after commissioning. Look for:

• Funding and finance knowledge: Can explain allowances, SEG, PPAs and lease structures without overpromising.
• Feasibility expertise: Provides yield forecasts, ROI analysis and design specifications.
• Relevant experience: Has delivered projects for similar businesses or public sector bodies.
• End-to-end delivery: Covers consultancy, installation, and aftercare.
• Post-installation support: Monitoring, optimisation and performance guarantees.

EvoEnergy is a commercial renewable energy company offering consultancy, installation and aftercare alongside CAPEX, PPA, lease-to-own and green loan finance.

Ready to check which funding applies to your site?

Tell us about your site, energy use and tax position, and we will help you compare CAPEX, PPA, lease-to-own and green loan routes alongside any schemes that apply. Make an enquiry, explore our technologies, or see our finance options.

Frequently asked questions

Are there government grants for solar panels for businesses in the UK?

Not for typical private-sector rooftop projects in 2026. The IETF closed in July 2025 and no successor is planned. Support comes mainly from the Annual Investment Allowance, the business rates exemption and SEG payments. Narrow grants exist for EV chargepoints under the WCS and for some public sector buildings.

Is the Industrial Energy Transformation Fund still open?

No. GOV.UK confirms it closed in July 2025 and the second Phase 3 window was cancelled. Projects already awarded remain funded, and a final evaluation of Phases 1 and 2 was published in January 2026.

Can a business claim tax relief on solar panels?

Yes, through capital allowances. The Annual Investment Allowance allows up to £1 million of qualifying spend a year to be deducted in full. Full expensing usually does not apply because solar is generally treated as special-rate expenditure. Ask your accountant to confirm the treatment for your installation.

Do businesses pay business rates on solar panels?

Generally not. In England, eligible on-site renewable generation and storage plant is excluded from rateable value from 1 April 2022 to 31 March 2035, and Scotland has an equivalent exception from 1 April 2023. The Valuation Office Agency applies the change automatically in England.

How much does the Smart Export Guarantee pay businesses?

Suppliers set the rate, and it must be above zero. One July 2026 comparison listed commercial examples from about 3p to 15p per kWh. Compare tariffs on annual export income, contract length and any conditions tied to import supply.

Is there a grant for workplace EV chargers?

Yes. The Workplace Charging Scheme pays up to 75% of chargepoint costs, capped at £500 per socket and 40 sockets, with funding confirmed until 31 March 2027. You need off-street parking for staff or fleet and an authorised installer.

Is there business solar funding in Scotland?

Scotland has an interest-free SME Loan of up to £100,000, but Business Energy Scotland’s FAQs state it is not accepting new solar PV applications. The business rates exception for on-site renewables applies from 1 April 2023. Check the current position before applying.

What if my business has little taxable profit or a short lease?

A power purchase agreement may suit better. The funder owns the system and normally claims the allowances, and you buy the electricity at an agreed rate. Compare it against lease to own and green loan options on our finance pages.