Are there grants for solar panels on farms?
Farm funding for solar, by nation, checked 2 November 2026
| Nation | Scheme | Solar PV? | Status |
|---|---|---|---|
| England | Improving Farm Productivity, round 2 | Yes, £15,000 to £100,000 | Closed |
| England | FETF 2026 | No; one solar water pump item | Closed 12 May 2026 |
| Scotland | SME Loan Scheme | Not accepting solar PV | Open for other measures |
| Wales | Green Business Loan Scheme | Yes (a loan) | Open |
| Northern Ireland | Sustainable Farming Investment Scheme | Not mentioned on its page | Round 1 closed |
Grants open and close often, so check the scheme page before relying on any of this, and be wary of any site promising a farm solar grant without linking to the scheme itself.
England: Defra and RPA schemes
Improving Farm Productivity. Round 2 offered between £15,000 and £100,000 for solar photovoltaic systems. It is closed (RPA), and Defra's "Funding for farmers, growers and land managers" page lists no open grant for solar panels (Defra).
Farming Equipment and Technology Fund 2026. The FETF offered between £1,000 and £25,000 for each of three themes (productivity, slurry, animal health and welfare) to farmers, horticulturalists, forestry owners and contractors in England. Applications opened on 17 March 2026 and closed at midday on 12 May 2026 (RPA). Its productivity list included one solar item, FETF413, a self-contained solar powered water pump with its own panel, inverter and battery: 40% of an expected £5,000 cost, a £2,000 grant (item list). It did not fund solar panels for buildings.
Scotland
The Scottish Government's SME Loan Scheme, run through Business Energy Scotland, lends £1,000 to £130,000 interest-free for energy measures, repaid within 8 years, but its FAQs say it is not accepting new applications for solar PV (Business Energy Scotland). Business Energy Scotland's advice is free and impartial, and its case studies include a dairy farm with solar PV and battery storage (Business Energy Scotland). More in solar support for Scottish businesses.
Wales
The Development Bank of Wales' Green Business Loan Scheme lists solar PV among the projects it funds, with discounted fixed interest rates and a term linked to the project's payback. It is a loan, not a grant, and applicants need to be based in Wales with at least two years of trading and filed accounts. The bank also says a Sustainable Agriculture Loan Scheme for Welsh farms is in development (Development Bank of Wales).
Northern Ireland: DAERA
DAERA's Sustainable Farming Investment Scheme is a capital grant scheme for equipment and technology for primary producers in agriculture and horticulture. Its page says Round 1 is closed and does not mention solar panels (DAERA). We found no open DAERA scheme for farm solar on 2 November 2026.
Tax relief and business rates instead of grants
- Capital allowances: Solar panels are special rate plant (HMRC CA22335), and the Annual Investment Allowance lets a business deduct up to £1 million of qualifying spending in the year (GOV.UK). For a profitable farm this is usually worth more than any grant on offer. See capital allowances on solar panels.
- Business rates: GOV.UK lists farm buildings among the properties exempt from business rates (GOV.UK), and in England, renewable generation plant is left out of rating valuations until 1 April 2035 (SI 2022/405).
- Paying over time: A loan, hire purchase or a PPA spreads the cost. See commercial solar finance.
Farms usually get the best return when the system is sized to what they use in the day: dairies, cold stores, grain drying and workshops. See solar panels for farms and ground mounted solar.
Sources
Every scheme was checked on its official page (GOV.UK, Defra and RPA, DAERA, Business Energy Scotland, Development Bank of Wales, HMRC, legislation.gov.uk) on 2 November 2026. Schemes open and close; check before relying on any of this.
- GOV.UK (RPA): Farming Equipment and Technology Fund (FETF) 2026 (closed 12 May 2026)
- GOV.UK (RPA): Productivity items and specifications, FETF 2026 (item FETF413, solar powered water pump)
- GOV.UK (RPA): Improving Farm Productivity grant round 2 (closed)
- GOV.UK (Defra, RPA): Funding for farmers, growers and land managers
- DAERA: Sustainable Farming Investment Scheme
- Business Energy Scotland: SME Loan Scheme FAQs
- Business Energy Scotland: free support for businesses
- Development Bank of Wales: Green Business Loan Scheme
- GOV.UK: Annual Investment Allowance (£1 million)
- GOV.UK: Full expensing and the 50% first-year allowance (companies)
- HMRC CA22335: solar panels are special rate expenditure
- GOV.UK: Business rates exemptions (farm buildings)
- SI 2022/405: renewables plant left out of business rates valuations in England until 1 April 2035
Frequently asked questions
Are there grants for solar panels on farms in 2026?
When we checked on 2 November 2026 we found no open grant for rooftop or field solar on farms in any UK nation. England's Improving Farm Productivity grant, which funded solar PV, is closed; the Farming Equipment and Technology Fund 2026 closed on 12 May 2026 and its only solar item was a solar powered water pump. Capital allowances remain the main help for farms that buy a system.
Does the Farming Equipment and Technology Fund pay for solar panels?
Not for a solar PV system. The FETF 2026 productivity list included one solar item, FETF413, a self-contained solar powered water pump, with a grant of 40% of an expected £5,000 cost (£2,000). The fund closed at midday on 12 May 2026.
Are there DAERA grants for solar panels in Northern Ireland?
DAERA's Sustainable Farming Investment Scheme funds equipment and technology for farmers, but its page says Round 1 is closed and does not mention solar panels. We found no open DAERA scheme for farm solar on 2 November 2026.
Can farmers in Scotland get a loan for solar panels?
Not through the SME Loan Scheme at present: its FAQs say it is not accepting new applications for solar PV. Business Energy Scotland still offers free, impartial support, including reports on a business's energy use.
Can a farm claim capital allowances on solar panels?
Yes, if the farm business pays tax and buys the system. Solar panels are special rate plant, and the Annual Investment Allowance lets a business deduct up to £1 million of qualifying spending in the year. A farm run as a company may also be able to use the 50% first-year allowance on the rest.
Will solar panels on a barn increase business rates?
GOV.UK lists farm buildings among the properties exempt from business rates. Separately, in England, plant used to generate power mainly from renewable sources, including solar, is left out of rating valuations until 1 April 2035.
Related pages
- FarmsDairy, poultry and grain enterprises can make good use of solar on sheds or land. A farm survey looks closely at seasonal demand, building condition and rural grid capacity.
- Dairy farmsMilking, milk cooling and water heating run every day of the year, which gives a dairy farm steady demand for what panels make.
- Poultry and pig farmsLong shed roofs and ventilation, lighting and feed systems that run all year make many poultry and pig units strong candidates for solar.
Capital allowancesHow solar panels are treated for capital allowances: the special rate pool, the Annual Investment Allowance, the 50% first year allowance for companies, and illustrative examples.- EnglandCurrent solar support in England for businesses, schools, public bodies, community groups and farms, plus rates, planning and who to contact.