The short version
The Scottish Government funds free energy advice for organisations and a range of loans and grants, but as of November 2026 its main business loan is not accepting new solar PV applications. Community organisations have the clearest grant route. Everything below is based on official pages we checked in November 2026. Check again before you apply.
Businesses
Business Energy Scotland
Business Energy Scotland provides free, impartial energy advice and reports for Scottish organisations on behalf of the Scottish Government. A Business Energy Scotland report is also the starting point for its loan scheme.
The SME Loan Scheme
The Scottish Government's SME Loan Scheme offers interest-free loans, repayable over eight years, for applications between £1,000 and £130,000. It is open to Scottish SMEs, not-for-profit organisations and charities that meet the eligibility rules. Many energy efficiency and heating measures also qualify for cashback.
However, the scheme's FAQs state that it is not accepting new applications for solar PV projects. Other rules to note: you must have a qualifying Business Energy Scotland report, must not start work or pay deposits before a formal offer, and electricity generating systems that would make the site a net exporter over a year are not eligible.
TODO for the site owner: Re-check the Business Energy Scotland SME Loan FAQs to see whether solar PV applications have reopened, and update this section with any new terms.
Tax and rates
Capital allowances apply in Scotland as elsewhere in the UK; see our capital allowances guide. Scotland exempts plant and machinery used for onsite renewable generation and storage from rating from 1 April 2023 to 31 March 2035, under SSI 2023/32. Your local assessor can confirm how this applies to your property.
Community groups and charities
Local Energy Scotland runs the Scottish Government's Community and Renewable Energy Scheme (CARES). As of November 2026:
- The CARES Community Buildings Fund is open. It offers grants of up to £80,000, covering up to 80% of eligible costs, to non-profit distributing Scottish charities and companies. Eligible measures include solar PV and battery storage. The building must be owned or held on a lease of at least five years, applicants must fund 20% of the project cost, and any gas or oil heating must be replaced with an efficient alternative.
- The Community Energy Growth Fund, which supports community-owned generation projects, is closed to new applications.
Great British Energy supports community energy in Scotland through CARES rather than through its own Community Fund, which is not open in Scotland. Charities may also qualify for the VAT zero rate on buildings used solely for a relevant charitable purpose; see our charities page.
Public bodies and schools
The Scottish Government has offered loans and grants for public sector buildings, including solar, through the Scottish Green Public Sector Estate Decarbonisation Scheme. A Scottish Government response in 2026 indicated that programme had no live pipeline, with current public sector funding focused on heat decarbonisation. Schools are usually funded through their local authority.
TODO for the site owner: Confirm on gov.scot which public sector capital funding for solar PV, if any, is open for 2026 to 2027, including for schools and NHS boards.
Farms
We did not find a current Scottish Government grant specifically for farm solar PV.
TODO for the site owner: Check the Scottish Government's rural support pages for any current capital grant or loan that covers solar PV or batteries on farms, and add it if found.
Planning in Scotland
Scotland changed its permitted development rights in 2024, removing the previous 50 kW limit for rooftop solar on most non-domestic buildings. Restrictions still apply, for example for listed buildings and World Heritage Sites. Ground-mounted arrays usually need planning permission. Our planning guide explains the main differences across the UK.
TODO for the site owner: Confirm the current conditions for non-domestic rooftop and free-standing solar under the Town and Country Planning (General Permitted Development) (Scotland) Order as amended in 2024.
Making the numbers work in Scotland
A typical Scottish rooftop produces less per kWp than one in southern England, but long summer days help, and many Scottish businesses have steady daytime demand. With the SME Loan closed to new solar PV applications, most businesses fund solar from their own resources, through commercial asset finance or through a power purchase agreement. The rates exemption and capital allowances still apply, so the overall case can be strong on a well suited site. A survey models generation for your roof and location, which matters more in Scotland than anywhere else in Great Britain because output varies so much between regions.
Grid connections
In Scotland, connections are handled by SP Energy Networks in central and southern Scotland and Scottish and Southern Electricity Networks in the north. Larger systems need G99 approval before connection, and the Smart Export Guarantee applies. Our Scotland region page covers local conditions.
Steps for a Scottish organisation considering solar
- Ask Business Energy Scotland for free advice, and check the latest SME Loan position on solar PV.
- If you are a community group or charity with a community building, check the CARES Community Buildings Fund guidance before you get quotes, because applications must follow its process.
- Confirm with your local assessor how the rates exemption applies to your property.
- Check permitted development with your planning authority, especially for listed buildings.
- Get a survey and design so you have generation and cost figures for any funder or lender.
Who to contact
- Business Energy Scotland for business advice and the SME Loan
- Local Energy Scotland for CARES community funding: localenergy.scot
- Your local authority and local assessor for planning and rates
- Your accountant for capital allowances and VAT
When you want to see what solar would save on your own site, request a free survey.
Frequently asked questions
Can I get a Business Energy Scotland loan for solar panels?
Not at present. The SME Loan Scheme FAQs state that it is not accepting new applications for solar PV projects. The scheme still offers interest-free loans for many energy efficiency and heating measures. Business Energy Scotland's free advice and reports remain available, so check with them whether solar PV has reopened before you plan around a loan.
Are solar panels exempt from business rates in Scotland?
Plant and machinery used for onsite renewable generation and storage is excluded from rating valuations in Scotland from 1 April 2023 to 31 March 2035. In most cases, qualifying rooftop solar should not increase your rateable value during that period. Ask your local assessor to confirm how the exemption applies to your property.
Can a community hall in Scotland get a solar grant?
Possibly. The CARES Community Buildings Fund, run by Local Energy Scotland, offers grants of up to £80,000, covering up to 80% of eligible costs, for renewable and energy efficiency measures in community buildings. Solar PV and battery storage are eligible. The applicant must be a non-profit distributing Scottish charity or company with a long enough interest in the building.
Do I need planning permission for solar on a business roof in Scotland?
Often not. Scotland removed the previous 50 kW cap on permitted development for rooftop solar on most buildings in 2024. Listed buildings, World Heritage Sites and some other locations still need consent, and ground-mounted systems usually do. Check with your local planning authority before installing.
Related pages
GrantsAn honest overview of funding for commercial solar across the UK: tax reliefs, rates exemptions, VAT, export payments, loans and the schemes run in each nation.- ScotlandSP Energy Networks and SSEN connections, NPF4 and Scottish permitted development, the four city low emission zones, the Scottish rates exemption and realistic yields.
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.- Charities and communityCharity buildings range from daily offices to occasional-use halls and historic churches. The survey tests whether demand matches generation and highlights VAT, heritage and governance points.
Smart Export GuaranteeHow SEG export payments work for business solar in Great Britain, who is eligible, what accreditation and metering you need, and how much export adds to the case.