Commercial Battery
Storage Grants UK
Solar + BESS installations for UK businesses. The Annual Investment Allowance saves 25% in Year 1. 0% VAT saves 20% upfront. Salix Finance for the public sector. We size from your AMR data and manage everything from G99 to commissioning.
How grants apply to battery storage
Free AMR data review
We pull your half-hourly meter data and model the optimal BESS size, charge/discharge strategy, and revenue stacks. No obligation — just numbers.
Stack incentives automatically
AIA + 0% VAT applies at invoice stage with no application. Salix requires a short application for public sector. We handle all of it.
G99 to commissioning
We manage the DNO connection application, MCS installation partner coordination, and system commissioning through to first export.
Battery storage funding routes
Four stacking mechanisms reduce the effective net cost of a commercial BESS installation to 40–60% of gross capex in most UK scenarios.
100% first-year corporation tax relief
Battery storage qualifies as plant and machinery for the Annual Investment Allowance — 100% of capex deducted from corporation tax in Year 1. On a £200k BESS installation, that's £50k tax relief at 25% CT. Permanent, unlimited, applies to standalone and co-located systems.
Zero VAT on solar + BESS co-location
Co-located battery storage alongside solar PV qualifies for 0% VAT on both assets. Installing a £200k BESS with a £150k solar array as a combined project saves £70k versus a 20% VAT scenario. Rate is open-ended through the 2027 budget cycle.
Time-of-use export optimisation
BESS enables strategic export to grid during SEG peak tariff windows (typically 16:00–19:00). Sites combining solar + BESS typically earn £2–5k per 100 kWp solar more in annual SEG income than unmanaged export.
Interest-free loans for public sector
NHS trusts, schools, councils and universities access Salix BAU loans for BESS. Repaid from energy savings over 5–12 years. Open-ended. Typical projects £100k–£3m. PSDS Phase 4 has closed but Salix BAU loans are live and accepting applications.
Battery storage by location
We install and fund commercial BESS projects across the UK. Find your city for local DNO, grant routes and pricing:
Battery storage grant FAQs
What grants are available for commercial battery storage in the UK?
How much does commercial battery storage cost in the UK?
What size battery storage system does a commercial site need?
Can public sector bodies get Salix Finance for battery storage?
How long does a commercial battery storage system take to pay back?
Get a battery storage funding shortlist
We model your site from AMR data and return a costed BESS proposal with full grant funding breakdown within one working day.
No obligation. We don't charge for grant scoping.
Battery sizing is the part most quotes get wrong, and it is worth reading how EC Eco Energy's BESS solutions approach the same problem on Essex commercial sites before you settle a specification.
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.
- commercial heat pump prices by system size
Main-rate plant, so Full Expensing does apply here.
- battery storage economics for commercial sites
Main-rate plant. Stacks with solar for self-consumption.
- commercial solar capex bands for 2026
Capex bands per kWp before any relief.
- solar panels for industrial buildings
Large roofs, high daytime load — the strongest case.
- AIA on a commercial solar installation
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; 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.
- · 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.