Commercial solar grants and funding in the UK

The honest picture

As of November 2026, there is no single UK-wide capital grant that pays for solar panels on most business premises. Schemes do open and close, often for specific groups such as community energy organisations, public bodies or businesses in one nation. If an installer tells you a grant will cover your system, ask for the scheme name and check it on the official website before you sign anything.

For most commercial sites, solar pays for itself through lower electricity bills. Funding support improves the numbers, but it rarely makes or breaks a well designed project.

What support does exist

Tax reliefs

Businesses that buy solar can usually claim capital allowances. The Annual Investment Allowance gives 100% relief on up to £1 million of qualifying spending a year, and companies can also claim a 50% first year allowance on special rate assets such as solar panels. These apply across the UK. Our capital allowances guide explains the rules. Always confirm the tax treatment with your accountant.

Business rates

England, Scotland and Wales each exempt eligible onsite renewable generation and storage plant and machinery from rating until 31 March 2035, from different start dates. Northern Ireland has its own rules, under which systems of 50 kW or less are not rateable. Each nation page gives the detail.

VAT

Commercial solar is normally standard rated at 20%, which VAT registered businesses recover in the usual way. Since 1 February 2024, installations in buildings used solely for a relevant charitable purpose can qualify for the zero rate for energy-saving materials. HMRC explains the conditions in VAT Notice 708/6. Charities should read our charities page and take advice before relying on it.

Export payments

In Great Britain, the Smart Export Guarantee pays for electricity you export, at rates set by each supplier. There is no SEG in Northern Ireland.

Nation and sector schemes

Each nation runs its own support, and Great British Energy funds community and public sector projects across the UK. Current examples include low interest loans for businesses and farms in Wales, a community buildings grant in Scotland and the GBE Community Fund for community energy groups in England, Wales and Northern Ireland.

Loans

Several public bodies offer loans rather than grants. A loan still has to be repaid, but low or zero interest can make it cheaper than commercial finance. Compare its total cost with commercial hire purchase, leasing and power purchase agreements before deciding.

How much difference support makes

It helps to put support in proportion. In our illustrative example, a 100 kWp system costing £90,000 saves about £18,180 a year. For a company paying the 25% main rate of corporation tax, the Annual Investment Allowance is worth about £22,500 in lower tax in the first year, which is more than a year's savings. The business rates exemptions mean the system should not add to your rates bill in England, Scotland or Wales, and export payments add a modest sum each year.

For an organisation that pays no tax, such as many charities, allowances are worth nothing, so the VAT zero rate, community grants and low interest loans matter more.

Be wary of "government funded" offers

Cold calls and adverts offering "government funded" or "free" commercial solar are common. Genuine public schemes are run by named bodies, have published eligibility rules and an official website, and do not ask you to pay a fee to apply. If an offer is really a power purchase agreement or a lease, it should say so plainly.

Support by nation

Support for particular organisations

• Schools and colleges: funding has mostly come through targeted government and Great British Energy programmes rather than open applications. Check with your local authority, trust or the relevant nation's energy service.
• Public bodies: public sector decarbonisation schemes have funded solar alongside heating upgrades, but many rounds are now closed.
• Charities and community groups: community energy funds are the most active source of grant funding in 2026. Charities may also benefit from the VAT zero rate.
• Farms: Wales currently offers a low interest loan for farm renewables. Elsewhere, check the farming department in your nation.

Before you apply for anything

1. Do not start work or pay deposits before you have a written offer. Many schemes refuse funding for work already under way.
2. Get proper quotes and a design. Most schemes ask for at least one detailed quote, and some ask for two.
3. Check the payback rules. Some loans require a maximum payback period.
4. Keep your tax adviser involved. Grants can reduce the cost you can claim allowances on.

A free survey gives you the system design, generation estimate and costs that funders and lenders ask for. Request a free survey to get those figures for your site.