Commercial solar grants in the UK: what is open, what has closed, nation by nation
IETF and PSDS closed to new applications in 2024. REPF ended in March 2026. What is left is mainly the Annual Investment Allowance, the Smart Export Guarantee and PPAs, which together still pay back commercial solar in 4–6 years on many sites. This guide tracks which schemes are open in England, Scotland, Wales and Northern Ireland, and marks the closed ones as closed.
- IETF, PSDS, UKSPF — closed status confirmed against gov.uk
- Active 2026 stack: AIA + SEG + PPA (REPF ended March 2026)
- Always check your installer is MCS-certified
- Free funding review. No obligation.
No obligation.
Commercial Energy Services
The most competitive grant packages in 2026 bundle multiple technologies. One application, one contractor, maximum incentives.
Battery Storage
Solar + BESS co-location cuts capex and maximises self-consumption
EV Charging
OZEV workplace grants plus solar integration for near-zero fuel cost
Heat Pumps
Solar-powered heat delivers 3.5–5× efficiency on every unit of electricity
Energy Efficiency
Bundle solar, LED, heat pumps and EV under one grant application
2026 Grant & Incentive Status
The definitive UK commercial solar funding picture — confirmed against gov.uk, Salix Finance and DESNZ announcements.
UK commercial solar funding looks very different in 2026 than it did 12 months ago.
PSDS Phase 4 and UKSPF closed to new applications during 2024-2026, and the IETF (which never funded solar PV) closed in July 2025. 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, PPAs still deliver 4–6 year payback on most commercial solar projects.
What's actually still open in 2026
The active UK commercial solar funding stack in May 2026 has five legs. First, tax allowances — the 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, VAT recovery: commercial solar is standard-rated at 20%, which VAT-registered businesses normally reclaim. 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, and GBE Community Fund for community-led projects. The Scottish IETF closed its last call in March 2025 and never funded solar PV.
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 + 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.
Different schemes apply to different sectors. Pick yours for the funding stack that actually fits.
Each sector page has the live grant deadlines, eligibility rules, typical project sizing and one or two case studies. If your business doesn't fit cleanly into one of these, send us a funding review request.
Manufacturing & Industrial
English IETF closed; the working stack is AIA + PPA + SEG. Scottish manufacturers are in the same position: SIETF closed in March 2025.
See sector fundingAgriculture & Farms
On-farm PV with REPF (council-administered), Annual Investment Allowance and SEG export. Typical payback under 7 years.
See sector fundingSchools, Academies & FE
PSDS Phase 4 closed November 2024. Salix BAU loans and LCSF (HDP funding) remain. Stay ready for any Phase 5.
See sector fundingNHS & Healthcare
PSDS new applications closed; existing awards delivering through 2028. Salix interest-free loans still available.
See sector fundingHotels & Hospitality
Hotel groups using PPAs and the Annual Investment Allowance reduce fixed-cost electricity by 40–60% with zero upfront capex.
See sector fundingWarehouses & Logistics
Large rooftops + half-hourly demand make logistics one of the strongest commercial PV ROIs in the UK today.
See sector fundingScottish 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.
See which grants your business qualifies for — free 20-minute funding review.
Tell us your sector, roof size and energy spend. We reply by email with a shortlist of grants and the realistic capex you can expect to recover.
No obligation. We don't charge for grant scoping.
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) (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)
AIASmart Export Guarantee (SEG)
SEGPower Purchase Agreements (PPA)
On-site PPALocal Growth Fund (UKSPF successor, allocated to the authorities)
Local Growth FundGreat British Energy Community & Public Fund
GBE Community FundSalix Interest-Free Loans
Salix BAU loansFrom scoping call to grant decision in 8–12 weeks.
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.
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.
Application drafting
We write the funder-specific narrative for schemes that are open (the IETF closed in July 2025 and PSDS has had no open window since November 2024).
Decision + delivery
On approval, the project moves to installation. Always check your installer is MCS-certified.
Commercial solar funding is regional. We track every UK programme.
The IETF (England, Wales and Northern Ireland only) closed in July 2025 and PSDS is closed, so neither is a live route; devolved nations run their own programmes. Then there are LEP and freeport allocations, mayoral combined authority funds, and council-led schemes. We track all of them.
30 UK city guides — view all on the resources hub.
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.
Active funding routes
Solar guides
Sectors
- Manufacturing
- Agriculture & Farms
- Warehousing & Logistics
- Distribution Centres
- Schools & Education
- Multi-Academy Trusts
- Universities
- Nurseries & Childcare
- NHS & Healthcare
- Local Authorities
- Leisure Centres & Pools
- Holiday Parks
- Golf Courses
- Distilleries
- Breweries
- Food Processing
- Pharma Manufacturing
- Aerospace Manufacturing
- Printing & Packaging
- Recycling & Waste
- Airports
- Ports & Terminals
- Data Centres
- Care Homes
- Churches & Faith
- Charities
Adjacent tech
Process & resources
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.
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 →Commercial solar grants — the questions we get most.
Are commercial solar grants still available in the UK in 2026?
What changed in UK commercial solar funding in 2024–26?
Can a private company get a grant for solar panels in 2026?
What can schools and NHS trusts do now that PSDS is closed?
Has 0% VAT been extended to commercial solar?
What is the Smart Export Guarantee and how much does it pay?
More on our FAQs page — including supplier-specific and sector-specific questions.
Ready to see what your business could win?
One conversation. No commitment. We reply by email 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 Heat pumps for space or water heating are special-rate: AIA, then the 50% FYA. Standalone batteries are probably main-rate (full expensing for companies), but HMRC has no specific guidance; confirm with your adviser.
- heat pump capex for commercial buildings
Special-rate integral feature: AIA up to £1m, then the 50% special-rate first-year allowance for companies; full expensing does not apply.
- commercial battery storage costs and ROI
Probably main-rate plant (HMRC has no specific guidance, so confirm with your adviser). Stacks with solar for self-consumption.
- what commercial solar costs per kWp
Capex bands per kWp before any relief.
- rooftop solar on industrial premises
Large roofs, high daytime load — the strongest case.
- the Annual Investment Allowance explained for solar
Solar is special-rate, so AIA is the 100% year-one route.
Find out which 2026 schemes your site actually qualifies for
- 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; heat pumps for building heating are also special-rate integral features, and standalone battery storage is probably main-rate plant (HMRC has no specific guidance, so confirm with your adviser). 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.
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- · We are an independent funding information service — not an installer.