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 →

Battery Storage

Commercial Battery Storage Grants UK

Solar + BESS installations for UK businesses. The Annual Investment Allowance saves 25% in Year 1. Salix Finance for the public sector. We size from your AMR data and manage everything from G99 to commissioning.

25%
Year 1 CT relief via AIA
0%
VAT on co-located solar + BESS
£0
Interest Salix loans for public sector
Free BESS funding review
Independent
4.5yr
Avg Payback
Always check your installer is MCS-certified
How it works

How grants apply to battery storage

1
01

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.

2
02

Stack incentives automatically

AIA applies at invoice stage with no application. Salix requires a short application for public sector. We handle all of it.

3
03

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.

Annual Investment Allowance

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.

Smart Export Guarantee

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.

Salix Finance

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:

Aberdeen
North-East Scotland
Belfast
Northern Ireland
Birmingham
West Midlands
Bristol
South West England
Cambridge
East England, Cambridgeshire
Cardiff
South Wales
Coventry
West Midlands
Dundee
Scotland, Tayside
Edinburgh
Lothian, Scotland
Glasgow
West Central Scotland
Inverness
Scotland, Highland
Kingston upon Hull
Humber Region, East Riding
Leeds
West Yorkshire
Liverpool
Merseyside
London
Greater London
Manchester
Greater Manchester
Milton Keynes
South East England, Buckinghamshire
Newcastle upon Tyne
North East England
Nottingham
East Midlands
Oxford
South East England, Oxfordshire
Plymouth
South West England, Devon
Portsmouth
South East England, Hampshire
Reading
Berkshire, Thames Valley
Sheffield
South Yorkshire
Southampton
South East England, Hampshire
Stoke-on-Trent
Staffordshire, West Midlands
Sunderland
North East England
Swindon
South West England, Wiltshire
Wakefield
West Yorkshire, Yorkshire and the Humber
Wolverhampton
West Midlands, Black Country

Battery storage grant FAQs

What grants are available for commercial battery storage in the UK?
The 2026 active stack includes the Annual Investment Allowance (25% CT relief in Year 1, no application) on co-located solar + BESS, and Salix interest-free loans for public sector bodies (NHS, schools, councils, universities). The IETF closed in July 2025 with no successor (its last window shut on 19 April 2024, and batteries were never eligible), and PSDS has had no open window since Phase 4 closed in November 2024. Stacked, these reduce effective BESS net cost to 40–60% of gross capex for most UK commercial sites.
How much does commercial battery storage cost in the UK?
Commercial BESS costs £350–£550 per kWh of usable capacity installed in 2026. A 100 kWh system costs £35,000–£55,000 installed. Co-located with solar saves 20% upfront; the Annual Investment Allowance saves a further 25% via corporation tax in Year 1. Combined, a £50,000 BESS installation nets to around £30,000 effective cost for a profitable company.
What size battery storage system does a commercial site need?
Sizing depends on your half-hourly demand profile, peak demand periods, and solar array size. As a rough guide, target 1–2 hours of peak evening demand. For a 100 kWp solar system, 50–100 kWh of co-located storage is typical. We pull your AMR data and model the optimal charge/discharge strategy before recommending a system size.
Can public sector bodies get Salix Finance for battery storage?
Yes — NHS trusts, schools, councils and universities can access Salix BAU interest-free loans for standalone and co-located BESS projects. Projects range from £100k to £3m+. Repaid from energy savings over 5–12 years at zero interest. PSDS Phase 4 closed in November 2024 but Salix BAU loans remain open with no announced end date.
How long does a commercial battery storage system take to pay back?
Standalone BESS payback on time-of-use arbitrage and peak demand avoidance is typically 6–12 years. Co-located with solar, BESS lifts self-consumption from 40–50% to 80–90%, accelerating the combined solar + BESS system payback to 3–6 years. Public sector Salix-funded projects effectively pay back from day one as loan repayments match modelled energy savings.
Free funding review

Get a battery storage funding shortlist

We model your site from AMR data and return a costed BESS proposal with full grant funding breakdown by email.

Start Funding Review

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 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.

Free funding review

Find out which 2026 schemes your site actually qualifies for

What you get
  • 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.

What we will not do
  • · We do not pass your details to multiple installers.
  • · We do not run a lead auction, and your phone number is optional.
  • · No marketing lists, no unsolicited calls.
  • · We are an independent funding information service — not an installer.

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. A phone number is not required.