2026 Update: PSDS & IETF closed. AIA gives 100% year-one relief on solar. 2026 active stack still delivers 40–60% effective subsidy. See 2026 grants →

UK Commercial Solar Funding Specialists — May 2026

The major grants closed. The maths still works.

IETF and PSDS closed to new applications in 2024. The Annual Investment Allowance, SEG, REPF, 0% VAT and PPAs are still active — and stacked properly, still pay back commercial solar in 4–6 years. We're the independent funding consultants who know what's actually open.

  • IETF, PSDS, UKSPF — closed status confirmed against gov.uk
  • Active 2026 stack: AIA + SEG + REPF + PPA + 0% VAT
  • MCS-certified delivery partners across England, Scotland and Wales
  • Free 20-minute scoping call. No obligation, no retainer.

No obligation. Average funding review takes 20 minutes.

Independent
180+
Projects
£42m
Secured
4.5yr
Avg Payback
MCS NICEIC RECC TRUSTMARK
Verified May 2026

2026 Grant & Incentive Status

The definitive UK commercial solar funding picture — confirmed against gov.uk, Salix Finance and DESNZ announcements.

Scheme Status
Annual Investment Allowance (AIA) OPEN
Smart Export Guarantee (SEG) OPEN
Zero-rate VAT on Solar PV OPEN
Power Purchase Agreements (PPA) OPEN
Rural England Prosperity Fund (REPF) OPEN
Local Growth Fund (UKSPF successor) OPEN
Great British Energy Community & Public Fund OPEN
Salix Interest-Free Loans OPEN
Scottish IETF (SIETF) OPEN
Industrial Energy Transformation Fund (IETF) — England & Wales CLOSED
Public Sector Decarbonisation Scheme (PSDS) CLOSED
UK Shared Prosperity Fund (UKSPF) CLOSED

See full scheme details →

The 2026 UK funding landscape

UK commercial solar funding looks very different in 2026 than it did 12 months ago.

Three of the four major commercial solar grant schemes — IETF Phase 3, PSDS Phase 4 and UKSPF — closed to new applications during 2024–2026. Most online guides still describe them as live. Our job is to give you the honest 2026 picture: which schemes are actually open, which closed, and how to assemble a funding stack that pays back without depending on grants that no longer exist. The combination of Annual Investment Allowance, SEG, 0% VAT, PPAs and (for rural businesses) REPF still delivers 4–6 year payback on most commercial solar projects.

180+
Commercial PV projects supported
£42m
Funding secured for clients to date
92%
Funding & tax application success rate
4.5yr
Average payback on the 2026 active stack

What's actually still open in 2026

The active UK commercial solar funding stack in May 2026 has five legs. First, tax allowancesthe Annual Investment Allowance, and why Full Expensing does not apply to solar — which are guaranteed for any UK incorporated company paying corporation tax and effectively reduce net solar capex by 25%. Second, 0% VAT on solar, recently extended from domestic to commercial, which is a 20% reduction in VAT-inclusive cost with no application required. Third, private finance via Power Purchase Agreements — third-party investors own the asset, you buy electricity at a fixed pence/kWh below grid prices, zero capex from you. Fourth, export revenue through the Smart Export Guarantee, with dynamic tariffs paying 25–40p/kWh during system peaks. Fifth, residual targeted grants — REPF for rural businesses, the new Local Growth Fund in 11 Mayoral Authority areas, Salix interest-free loans for public sector, GBE Community Fund for community-led projects, and the still-active Scottish IETF for Scottish manufacturers.

Most businesses we speak to assume they need a grant. In 2026 — with IETF and PSDS closed — the honest answer is that for the majority of SMEs the combination of AIA + 0% VAT + a competitive PPA beats any active grant on net cash, with none of the application risk. See current commercial solar costs by system size.

Why an independent funding partner matters

We are not a solar installer. We don't sell panels. Our revenue comes from delivering successful applications and from project management on grant-funded builds — which means we have no incentive to push you into a £400,000 system when £180,000 would pay back faster. With the major grants now closed, our value is even sharper: keeping you out of fantasy projections about schemes that don't accept new applications, and steering you to the active routes that genuinely move payback. More about how we work.

Scottish sites have their own grid and grant picture, and commercial solar Glasgow is a useful read on how that plays out north of the border.

Where a roof will not take the load, lightweight solar options for commercial buildings are worth comparing against a ground-mount or canopy before you rule the site out.

Grant eligibility looks different when you own the building but not the electricity bill, which is why renewable energy for commercial landlords deals with the split incentive head-on.

Free funding review

See which grants your business qualifies for — free 20-minute funding review.

Tell us your sector, roof size and energy spend. We come back within one working day with a shortlist of grants and the realistic capex you can expect to recover.

No obligation. We don't charge for grant scoping.

The 2026 funding stack

Nine active routes — layered to replace what closed.

A typical commercial solar project doesn't use just one route. The right answer is normally a stack — for example, the Annual Investment Allowance (25% effective tax saving) + 0% VAT (20% off VAT-inclusive cost) + a PPA (zero capex on operating expenses) + SEG (export revenue) — that lands a 4–6 year payback. See the full guide to commercial solar grants and incentives — every active vs closed scheme for 2026.

Annual Investment Allowance (AIA)

AIA
Funder
HM Treasury / HMRC
Coverage
100% of the first £1m of qualifying solar spend written off in year one — worth ~25% of capex at 25% corporation tax
Cap
£1m AIA per group per year; spend above the cap attracts the 50% special-rate first-year allowance, with the balance in the 6% special rate pool
Deadline
Permanent — the £1m AIA limit is a permanent allowance
UK incorporated companies paying corporation tax. Solar PV is special-rate expenditure, so AIA — not Full Expensing — is the 100% year-one route (HMRC CA22335).

Smart Export Guarantee (SEG)

SEG
Funder
Ofgem-licensed electricity suppliers (>150k customers)
Coverage
Per-kWh payment for surplus solar exported to grid
Cap
No cap; system size limit 5MW (50kW for micro-CHP)
Deadline
Statutory & open-ended; tariffs reset by each supplier
Any business with MCS-certified solar PV under 5MW

Zero-rate VAT on Solar PV

0% VAT
Funder
HM Treasury
Coverage
0% VAT on the supply and installation of solar PV
Cap
No cap
Deadline
Open-ended (extended through 2027 budget cycle)
UK businesses commissioning new solar PV (extended from domestic)

Power Purchase Agreements (PPA)

On-site PPA
Funder
Private third-party investors
Coverage
Zero upfront capex; site host buys power at fixed pence/kWh
Cap
Project-dependent; typical 6–9p/kWh below grid
Deadline
Open-ended private market
Sites with 100kW+ demand and 15+ year horizon

Rural England Prosperity Fund (REPF)

REPF
Funder
DEFRA via individual local councils
Coverage
Up to 40% of capex on rural enterprise solar
Cap
Typically £25k–£100k per project; council-dependent
Deadline
Active 2025–26 round in many councils; check your local authority
Farms, rural SMEs, agri-food processors in eligible council areas

Local Growth Fund (UKSPF successor)

Local Growth Fund
Funder
Mayoral Strategic Authorities
Coverage
Variable; capital grants for local economic priorities including decarbonisation
Cap
£1.5bn total over 3 years; project-specific caps by authority
Deadline
Active from 1 April 2026; calls open through 2028
11 Mayoral Strategic Authority areas in North England + Midlands only

Great British Energy Community & Public Fund

GBE Community Fund
Funder
Great British Energy (publicly-owned)
Coverage
Feasibility & development funding for community-led solar
Cap
Project-dependent; typical £10k–£100k feasibility grants
Deadline
Open with £5m boost announced for 2026
Community-led organisations, charities, social clubs, faith buildings, village halls

Salix Interest-Free Loans

Salix BAU loans
Funder
Salix Finance Ltd (DESNZ-backed)
Coverage
Interest-free loan repaid from energy savings
Cap
Sector-dependent; typical £100k–£3m per project
Deadline
Open-ended (separate from closed PSDS Phase 4)
Public sector bodies (separate from PSDS)

Scottish IETF (SIETF)

SIETF
Funder
Scottish Government / Scottish Enterprise
Coverage
Up to 30% capex; deep decarbonisation up to 50%
Cap
Window-dependent; typically £100k–£10m per project
Deadline
Active windows continue 2025–28 (separate from closed English IETF)
Scottish manufacturing, food processing, chemicals
How we work

From scoping call to grant decision in 8–12 weeks.

01

Free scoping call

A 20-minute conversation about your sector, energy spend and roof / land. We come back with a shortlist of grants you would credibly win.

02

Energy audit + design

We pull half-hourly meter data, build an MCS-compliant PV design, and a fully costed financial model — capex, payback, IRR, NPV.

03

Application drafting

We write the funder-specific narrative — IETF needs decarbonisation pathways, PSDS needs Heat Decarbonisation Plans, REPF needs rural growth metrics.

04

Decision + delivery

On grant approval, we project-manage the build through one of our MCS-certified installer partners. You sign one set of contracts.

Pillar guides

Deep-dive guides — every commercial solar funding route, sector and topic.

Each page covers one specific topic in depth — funding routes, sub-sectors, tax mechanics, application process. Use these for board papers, internal scoping or to brief a colleague.

Estimate your funding

Estimate Your Grant Value

Enter your site details to get a ballpark funding estimate. This is indicative — we'll build a precise model from your AMR data.

£5k£500k
100 sqm5,000 sqm
Estimated figures
Solar system size
Gross install cost
Total incentives
Net effective cost
Est. annual saving
Est. payback period

Indicative only. Based on typical UK commercial rates. Get a precise model from AMR data.

Tax relief shown assumes the Annual Investment Allowance (AIA) — 100% of the first £1m of spend in year one, worth ~25% of capex at 25% corporation tax. Solar PV is special-rate expenditure, so AIA is the 100% year-one route (Full Expensing covers main-rate plant only and does not apply to solar). Spend above the £1m AIA cap attracts the 50% special-rate first-year allowance, with the balance written down at 6% in the special rate pool.

Get precise funding model →
Frequently asked

Commercial solar grants — the questions we get most.

Are commercial solar grants still available in the UK in 2026?
The headline grants of recent years — IETF Phase 3, PSDS Phase 4, UKSPF — have all closed to new applications during 2024–2026. The 2026 funding stack that is still active: the Annual Investment Allowance (100% of the first £1m in year one, ~25% effective subsidy; solar is special-rate expenditure so AIA — not Full Expensing — is the route), Smart Export Guarantee (export revenue), 0% VAT on solar (extended to commercial), Power Purchase Agreements (zero capex), Rural England Prosperity Fund (rural businesses, council-administered), Local Growth Fund (11 Mayoral Authority areas only), Great British Energy Community Fund (community-led), Salix interest-free loans (public sector), and Scottish IETF for Scottish manufacturers. Combined, the active stack reduces effective project cost 40–60% on most sites. See the full breakdown on our commercial solar grants guide.
What changed in UK commercial solar funding in 2024–26?
Three major closures: IETF Phase 3 closed after the Spring 2024 round following the 2025 Spending Review; PSDS Phase 4 closed to new applications in November 2024 (existing awards still delivering); UK Shared Prosperity Fund closed 31 March 2026 with the Local Growth Fund replacing it only in 11 Mayoral Authority areas. The biggest positive change was the extension of 0% VAT on solar PV to commercial properties — a quiet 20% effective discount on every commercial install.
Can a private company get a grant for solar panels in 2026?
Direct cash grants for new applications are now very limited. The viable routes are (1) the Annual Investment Allowance — 100% of the first £1m of solar capex written off in year one, worth about 25p of corporation tax per £1, with no application (Full Expensing does not apply: solar is special-rate expenditure per HMRC CA22335); (2) PPAs — third-party-funded solar with zero capex; (3) Local Growth Fund if your business is in one of the 11 Mayoral Authority areas; (4) REPF if you are a rural enterprise; (5) Scottish IETF if you are a Scottish manufacturer.
What can schools and NHS trusts do now that PSDS is closed?
Three options: (1) Salix Finance interest-free loans — separate active scheme, repaid from energy savings; (2) wait for any PSDS Phase 5 announcement (none confirmed); (3) Local Growth Fund where the trust's estate is in an eligible Mayoral Authority area. The Low Carbon Skills Fund (also Salix) remains active for Heat Decarbonisation Plan funding — useful to stay scoping-ready.
Has 0% VAT been extended to commercial solar?
Yes. The 0% VAT relief originally introduced for domestic solar has been extended to commercial property installs, effectively a 20% reduction in the VAT-inclusive project cost. No application — the installer applies the relief at quote stage. Some installers default to 20% VAT on commercial — always ask explicitly for the 0% rate.
What is the Smart Export Guarantee and how much does it pay?
SEG is the statutory mechanism requiring large Ofgem-licensed electricity suppliers to pay you for surplus solar exported to the grid. Best commercial SEG tariffs in 2026 are paying 12–18p/kWh on flexible export contracts, and dynamic tariffs (Octopus Outgoing Agile, EDF Variable) pay 25–40p/kWh during system peaks. SEG is not a grant — it is a recurring revenue line that compounds over the system life.

More on our FAQs page — including supplier-specific and sector-specific questions.

Free funding review

Ready to see what your business could win?

One conversation. No commitment. We'll come back within one working day with a shortlist of grants you would credibly secure, ballpark capex, and the realistic payback after funding.

No obligation. We don't charge for grant scoping.

Funding by asset class

The allowance depends on the asset, and most pages on this topic get it the wrong way round. Solar PV is special-rate expenditure (HMRC Capital Allowances Manual CA22335), so the 100% year-one route is the Annual Investment Allowance — Full Expensing is a main-rate measure and does not reach it. Battery storage, EV charging and heat pumps are main-rate plant, so Full Expensing genuinely does apply to those.

Free funding review

Find out which 2026 schemes your site actually qualifies for

What you get, within one working day
  • 1. A short written funding note naming every scheme your site qualifies for in 2026 — and the ones it does not.
  • 2. Indicative system size and a capex band for your roof.
  • 3. Year-one tax treatment per asset in £ — solar is special-rate expenditure, so the route is the Annual Investment Allowance; battery storage and heat pumps are main-rate plant, where Full Expensing does apply. Most pages get this the wrong way round.
  • 4. Projected SEG export revenue at current rates.
  • 5. Any red-flag eligibility or DNO issues we can see up front.

Covers solar PV, battery storage, EV charging and commercial heat pumps — separately or as one bundled project. If your project is a heat pump or a battery rather than a roof, say so in the message box and the note is written against that asset instead.

What we will not do
  • · We do not pass your details to multiple installers.
  • · We do not run a lead auction, and we never ask for your phone number.
  • · No marketing lists, no unsolicited calls.
  • · We are an independent funding consultancy — not an installer, and we take no installer commission.

Five questions. They are the eligibility test itself — scheme eligibility in 2026 turns on sector, tenure, site size and spend, so we cannot shortlist anything without them.

We reply from funding@commercialsolargrants.co.uk. No phone number required, ever.