2026 Update: PSDS & IETF closed. Full Expensing permanent. 2026 active stack still delivers 40–60% effective subsidy. See 2026 grants →

UK guide — May 2026

Commercial solar panel grants — every active UK route in one table.

Full Expensing. 0% VAT. SEG. REPF. Local Growth Fund. Salix BAU loans. GBE Community Fund. Scottish IETF. Welsh Industrial Decarbonisation. Invest NI Capital Grants. The 2026 active stack — plus the three big ones that closed in 2024 — every route, who qualifies, how much, what status.

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Every UK commercial solar panel grant — May 2026

All schemes verified against gov.uk and individual funder announcements. The "Active" rows are open to new applications now. The "Closed" rows are no longer accepting new applications but existing awards continue to deliver.

Scheme Status Coverage Who qualifies Notes
Full Expensing Active ~25% of capex via tax UK incorporated companies No application; claimed on CT return
0% VAT on commercial solar Active ~17% off VAT-inclusive cost Any UK business Applied at invoice
Annual Investment Allowance Active 100% on first £1m of plant Sole traders, partnerships, companies Same effect as Full Expensing
Smart Export Guarantee Active 5-40p/kWh exported Any business with MCS PV under 5MW Recurring revenue
REPF Active Up to 40% capex Rural enterprises, council-eligible Council-administered
Local Growth Fund Active Variable, £25k-£500k typical 11 Mayoral Authority areas Replaces UKSPF April 2026
Salix BAU loans Active Interest-free, repaid from savings Public sector Separate from PSDS
GBE Community Fund Active Feasibility/dev funding Community-led organisations Charities, faith buildings, social clubs
Scottish IETF (SIETF) Active Up to 30% (50% deep decarb) Scottish manufacturers Separate from English IETF
Welsh Industrial Decarbonisation Active Variable Welsh manufacturers Welsh Government route
Invest NI Capital Grants Active 15-30% of qualifying capex Northern Ireland businesses Case-by-case via DfE
IETF Phase 3 (England/Wales) Closed — closed to new apps — closed to new apps Spring 2024 was final window
PSDS Phase 4 Closed — closed to new apps — closed to new apps Closed November 2024
UKSPF Closed — closed — closed Closed 31 March 2026

How to combine grants for maximum benefit

The right answer is normally a stack — multiple routes layered to compound the saving. The UK Subsidy Control Act 2022 prohibits double-grant funding for the same plant, but tax allowances and recurring revenue routes always layer on top.

Tax-only stack — for any UK incorporated business

Full Expensing (25% via corporation tax) + 0% VAT (~17% on VAT-inclusive cost) + SEG (export revenue 5-40p/kWh). No application required. Works for every UK incorporated commercial solar project. Effective subsidy: ~40% of capex equivalent.

Tax + grant stack — where eligible

Full Expensing + 0% VAT + SEG + REPF (rural) OR Local Growth Fund (Mayoral Authority area) OR Salix BAU loan (public sector). Effective subsidy: 50-65% of capex equivalent.

Zero-capex stack — PPA + tax routing

Power Purchase Agreement structure where a third-party investor pays for and owns the asset. The investor claims Full Expensing on the asset. You buy electricity at a fixed pence/kWh, typically 6-9p below grid prices. Effective subsidy embedded in the PPA tariff.

Sector-specific grant pages

Each sector has different funding access — see the dedicated pages:

Individual grant route pages

For deeper detail on each active route:

What we do for clients

The free funding review takes 4 minutes. We come back within one working day with a written shortlist of routes you would credibly use, indicative system sizing, and ballpark capex with payback after support. Engagement fees only kick in if you ask us to write the application — we never charge for the initial scoping.

Commercial solar panel grant FAQs

What commercial solar panel grants are available in 2026?
For 2026, the active UK commercial solar grant landscape includes: Full Expensing (corporation tax relief, ~25% effective), 0% VAT (~17% off VAT-inclusive cost), Annual Investment Allowance, Smart Export Guarantee, REPF (rural businesses), Local Growth Fund (11 Mayoral Authority areas), Salix BAU loans (public sector), GBE Community Fund (community-led), Scottish IETF (Scottish manufacturers), Welsh Industrial Decarbonisation programmes, and Invest NI Capital Grants (NI). The major direct grants of recent years — IETF Phase 3, PSDS Phase 4, UKSPF — have all closed to new applications.
Are commercial solar panel grants 100% funded?
Direct cash grants for new applications in 2026 do not typically cover 100% of capex. PSDS Phase 4 (when it was open) covered 100% of eligible capex for public sector with bundled heat measures, but that closed in November 2024. The active routes typically cover 25-40% of capex (REPF up to 40%, Local Growth Fund variable). Tax allowances (Full Expensing, 0% VAT) reduce effective capex by ~40% combined. Salix BAU loans cover 100% as interest-free debt repaid from energy savings.
How do I find out if my business qualifies for solar panel grants?
Eligibility depends on sector, geography and ownership structure. Manufacturers — check Scottish IETF (Scottish), Welsh Industrial Decarbonisation (Welsh), or rely on Full Expensing alone (English/post-IETF). Public sector — check Salix BAU loans and any future PSDS Phase 5. Rural businesses — check REPF via your local council. Businesses in 11 Mayoral Authority areas — check Local Growth Fund. The free <a href="/quote">funding review</a> takes your sector and postcode and produces a written shortlist within one working day.
How long does a commercial solar grant application take?
For active competitive grants (REPF, Local Growth Fund, Salix BAU loans), allow 6-10 weeks of preparation effort and 8-12 weeks of funder review. Total kickoff to grant decision: 16-22 weeks. Tax allowances (Full Expensing, AIA, 0% VAT) and SEG sign-up are immediate — no application timeline.
Can I get more than one solar panel grant?
Yes, with constraints. The UK Subsidy Control Act 2022 generally prohibits stacking two government grants for the same plant. Tax allowances stack with grants — they apply to net of grant. SEG is recurring revenue that always sits alongside any grant. PPA structures can capture grants on the host's behalf. Practical example: a Full Expensing + 0% VAT + REPF + SEG stack is fine; a REPF + Local Growth Fund stack on the same plant is not.
What's the difference between IETF and Salix PSDS?
IETF was for energy-intensive private manufacturing (DESNZ-administered). PSDS was for public sector (Salix-administered). Both closed to new applications during 2024. The functional successors in 2026 are: for manufacturing — Full Expensing + PPA + Scottish IETF (Scottish only); for public sector — Salix BAU loans (separate scheme, still active) + LCSF for HDP funding + Local Growth Fund where eligible.
Will IETF or PSDS reopen?
No formal reopening has been announced for either. The 2025 Spending Review explicitly decided not to extend IETF; £163m was committed to deliver existing awards through completion. PSDS Phase 4 closed with sufficient awards already made to commit the budget; no Phase 5 has been announced. We track this monthly and notify clients of any policy changes.
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.

Commercial solar funding across the UK

We work alongside a network of specialist sites covering every angle of UK commercial solar — installation, finance, sector expertise and regional delivery. If your enquiry is a closer fit elsewhere, the team will route it directly.