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.
Commercial solar panel grants in 2026 typically cover 25-40% of capex via REPF, the Local Growth Fund or a devolved-nation scheme, plus around 40% combined via Full Expensing (~25% effective tax saving) and 0% VAT — so a rural or devolved-nation project can see effective support of 50-65% of headline cost. The big direct cash grants of recent years (IETF Phase 3, PSDS Phase 4, UKSPF) have all closed to new applications. This page lists every route that is genuinely open right now, what each pays as a comparable %-of-capex figure, and the payback after support.
We are the only independent funding desk on this page — not an installer chasing a kit sale, not a supplier upselling a tariff, not a directory selling quote leads. We have no panels to sell and no electricity to push, so the route recommendations below carry no sales conflict — and because we actually write the applications, the coverage figures, timelines and stacking rules are more granular and more current than a lead-gen page can credibly be.
- UKSPF closed to new applications on 31 March 2026; the Local Growth Fund is the successor for Mayoral-Authority areas.
- IETF Phase 3 (England/Wales) and PSDS Phase 4 remain closed — no reopening announced; ignore installer pages that imply otherwise.
- REPF (up to 40% for rural businesses), Scottish IETF, Salix BAU loans and the UK-wide Full Expensing + 0% VAT stack are all confirmed active.
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 | Effective % of capex | Coverage | Who qualifies | Notes |
|---|---|---|---|---|---|
| Full Expensing | Active | ~25% | ~25% of capex via tax | UK incorporated companies | No application; claimed on CT return |
| 0% VAT on commercial solar | Active | ~17% | ~17% off VAT-inclusive cost | Any UK business | Applied at invoice |
| Annual Investment Allowance | Active | ~25% | 100% on first £1m of plant | Sole traders, partnerships, companies | Same effect as Full Expensing |
| Smart Export Guarantee | Active | Revenue | 5-40p/kWh exported | Any business with MCS PV under 5MW | Recurring revenue, not capex |
| REPF | Active | Up to 40% | Up to 40% capex | Rural enterprises, council-eligible | Council-administered |
| Local Growth Fund | Active | 20-40% | Variable, £25k-£500k typical | 11 Mayoral Authority areas | Replaces UKSPF April 2026 |
| Salix BAU loans | Active | 100% (loan) | Interest-free, repaid from savings | Public sector | Separate from PSDS |
| GBE Community Fund | Active | Feasibility | Feasibility/dev funding | Community-led organisations | Charities, faith buildings, social clubs |
| Scottish IETF (SIETF) | Active | 30-50% | Up to 30% (50% deep decarb) | Scottish manufacturers | Separate from English IETF |
| Welsh Industrial Decarbonisation | Active | Variable | Variable | Welsh manufacturers | Welsh Government route |
| Invest NI Capital Grants | Active | 15-30% | 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 |
What a commercial solar panel grant is worth — worked example
The intent behind “are there grants for commercial solar panels” is really is it worth it. Here is a single costed example for a 100kWp rooftop system at indicative 2026 pricing, showing payback before and after the funding stack. Figures are indicative UK ranges, not a quote.
- Installed cost: ~£75,000 (£750/kWp turnkey)
- Annual saving + export: ~£11,000/yr
- Simple payback: ~6.8 years
- Effective net capex: ~£45,000 (~60% of headline; lower again with REPF)
- Annual saving + export: ~£11,000/yr
- Simple payback: ~4.0 years
Indicative 2026 figures. Effective net capex assumes Full Expensing (~25% effective tax saving) and 0% VAT; a rural business adding REPF (up to 40%) would see net capex and payback fall further. Export income via SEG is included in the annual figure and is additional recurring revenue. Self-consumption ratio drives the saving — sites with strong daytime load pay back fastest.
How much do commercial solar panel grants cover?
Coverage has two layers: the cash grant (25-40% of capex where you qualify) and the UK-wide tax stack (Full Expensing + 0% VAT, roughly 40% combined) that applies on top. The table below shows indicative installed cost by system size, the effective net cost after the tax stack alone, and typical payback after support. Add a cash grant on top and both the net cost and payback fall further.
| System size | Indicative installed cost | Effective net cost after tax stack | Typical payback after support |
|---|---|---|---|
| 30 kWp | £28,000 - £33,000 | ~£17,000 - £20,000 | 5 - 7 yr |
| 50 kWp | £42,000 - £50,000 | ~£25,000 - £30,000 | 5 - 6.5 yr |
| 100 kWp | £70,000 - £90,000 | ~£42,000 - £54,000 | 4 - 6 yr |
| 250 kWp | £165,000 - £190,000 | ~£99,000 - £114,000 | 4 - 5.5 yr |
| 500 kWp | £330,000 - £380,000 | ~£198,000 - £228,000 | 4 - 5 yr |
Indicative 2026 UK turnkey ranges (£540-£1,100/kWp; the common 250-500kWp band sits around £660-£760/kWp). Effective net cost assumes Full Expensing + 0% VAT (~60% of headline). A REPF, Local Growth Fund or devolved-nation grant would reduce net cost and payback further. Confirm against a costed quote.
Commercial solar SEG export rates compared (2026)
The Smart Export Guarantee (SEG) is the closest thing to an ongoing “grant” — suppliers with 150,000+ customers must pay above 0p for surplus you export, provided the system is MCS-certified, under 5MW and has half-hourly export metering. Rates vary widely, and several top payers lock you into their import supply. Last verified June 2026.
| Supplier | Tariff | Export rate (p/kWh) | Customer required? |
|---|---|---|---|
| Octopus Energy | Outgoing Fixed / Agile / Flux | 15p fixed (Agile avg 14-18p; Flux peak ~30p) | Octopus import required |
| EDF Energy | Export Standard / Variable | 12p flat (Variable 12-18p banded) | SEG-only available — no switch |
| Scottish Power | SmartGen+ | ~12p | SP import required |
| Good Energy | Solar Savings Exclusive | Mid (~mid-teens) | Good Energy import required |
| British Gas | Export & Earn Plus | 6.4p | British Gas import required |
| E.ON Next | Next Export | ~5.5p | E.ON import required |
| OVO Energy | OVO SEG | ~5p | OVO import required |
| Shell Energy | Export | ~3.5p | Shell import required |
Indicative 2026 rates for comparison; confirm current figures with each supplier before signing. See our full SEG comparison and the EDF SEG page for the highest switch-free option.
Commercial solar grants by UK nation
Funding differs sharply by nation. Full Expensing, 0% VAT and the SEG apply UK-wide; everything else is devolved. The table summarises the headline route(s) per nation — follow the link for the full breakdown.
| Nation | Headline funding routes | More detail |
|---|---|---|
| England | Full Expensing + 0% VAT + AIA (no FETF); REPF for rural businesses; Local Growth Fund in Mayoral areas; Salix for public sector | England funding hub |
| Scotland | Scottish IETF (SIETF, manufacturers) + Business Energy Scotland SME loan (interest-free), on top of UK-wide Full Expensing + 0% VAT | Scotland grants |
| Wales | Welsh Industrial Decarbonisation programme + Development Bank of Wales lending, on top of UK-wide Full Expensing + 0% VAT | Wales grants |
| Northern Ireland | Invest NI capital grants (15-30%, case-by-case via DfE), on top of UK-wide Full Expensing + 0% VAT; separate NI export scheme (not GB SEG) | NI grants |
Do you qualify? Eligibility by sector and geography
Installer pages leave this vague with “grants may be available”. Here is the explicit qualifier: find your business type, see the primary route, the realistic coverage, and the evidence a funder will expect.
| Business type | Primary route | Typical coverage | Evidence needed |
|---|---|---|---|
| Manufacturer | Scottish IETF (Scotland) / Welsh Industrial Decarbonisation (Wales) / Full Expensing + PPA (England) | 30-50% (devolved) or ~40% via tax stack | Energy-intensity / process data, MCS quote, site survey |
| Rural business / farm | REPF via local council, on top of Full Expensing + 0% VAT | Up to 40% capex + ~40% tax stack | Rural classification, council eligibility, quotes |
| Public sector | Salix BAU loans (interest-free); any future PSDS Phase 5 | 100% as interest-free debt repaid from savings | Public-body status, energy baseline, project plan |
| Mayoral-Authority-area business | Local Growth Fund (replaces UKSPF), on top of tax stack | 20-40% capex (variable, £25k-£500k typical) | Postcode in a Mayoral area, business case |
| Community org / charity | GBE Community Fund + Salix where public-adjacent | Feasibility / development funding | Community-led status, faith/social building proof |
How to apply for a commercial solar grant (step by step)
Writing the application is what we actually do as an independent funding desk, so this is the most granular part of the page. Competitive grants (REPF, Local Growth Fund, Salix) take roughly 16-22 weeks kickoff to decision; tax allowances and SEG sign-up are immediate.
- Check eligibility — confirm which routes you can credibly use by sector, geography and ownership (use the qualifier table above).
- Review the open funding routes — shortlist the live schemes plus the UK-wide Full Expensing + 0% VAT stack, and rule out the closed ones (IETF Phase 3, PSDS Phase 4, UKSPF).
- Get MCS quotes and system sizing — obtain MCS-certified quotes with indicative capex and payback so the application carries credible numbers on a system under 5MW.
- Write and submit the application — prepare the funder-specific case (energy baseline, business case, evidence pack) and submit before the window closes.
- Funder review — allow 8-12 weeks of assessment for competitive grants.
- Drawdown and install — on approval, draw down under the grant agreement, install, then claim Full Expensing and 0% VAT on the net cost.
Which grants can you combine? (UK Subsidy Control Act 2022)
The Subsidy Control Act 2022 generally prohibits stacking two government cash grants on the same plant, but tax allowances and recurring revenue always layer on top. The do/don’t table:
| Combination | Allowed? | Why |
|---|---|---|
| Full Expensing + 0% VAT + SEG | Yes | Tax allowances and export revenue always layer on top of any route. |
| Full Expensing + REPF (rural) | Yes | Tax relief applies to the net-of-grant capex; this is the standard rural stack. |
| Full Expensing + Local Growth Fund | Yes | Tax relief sits on top of the grant where a Mayoral-area business qualifies. |
| REPF + Local Growth Fund on the same plant | No | Two government grants for the same asset breach the Subsidy Control Act 2022. |
| Salix loan + a cash grant on the same measure | Caution | Loan finance can co-exist with grants but not double-fund the same eligible cost — scope carefully. |
| SEG + any grant or PPA | Yes | Export revenue is recurring income, not a subsidy on capex — always compatible. |
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:
- Solar grants for manufacturers — IETF closed; SIETF for Scottish manufacturers
- Solar grants for farms — REPF still active
- Solar grants for schools — PSDS closed; Salix BAU loans + LCSF
- Solar grants for NHS trusts — PSDS closed; Salix loans + PPAs
- Solar grants for hotels — Full Expensing + PPA dominant
- Solar grants for warehouses — PPA + Full Expensing
- Solar grants for retail — Full Expensing + PPA + canopies
- Solar grants for offices — BREEAM credit value driver
Individual grant route pages
For deeper detail on each active route:
- Full Expensing — the most reliable 2026 commercial solar subsidy
- Smart Export Guarantee — recurring revenue for surplus exports
- SEG tariffs compared — supplier-by-supplier analysis
- Power Purchase Agreements — zero-capex commercial solar
- Salix funding — public sector loans and LCSF
- Local Growth Fund — UKSPF successor for Mayoral Authority areas
- Full grants and funding hub — all schemes in one place
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?
Are commercial solar panel grants 100% funded?
How do I find out if my business qualifies for solar panel grants?
How long does a commercial solar grant application take?
Can I get more than one solar panel grant?
What's the difference between IETF and Salix PSDS?
Will IETF or PSDS reopen?
Are there grants for commercial solar panels?
How much do commercial solar panel grants cover?
Can businesses get 100% funded solar?
Is there commercial solar funding in Scotland, Wales or Northern Ireland?
What replaced IETF and PSDS for commercial solar?
How do I apply for a commercial solar grant?
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.
Get precise funding model →See which grants your business qualifies for — free 20-minute funding review.
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Commercial solar grants & funding
Every active 2026 route to fund commercial solar — grants, tax allowances and loans — with the eligibility and application detail behind each.
Pillar guideCommercial solar grants & incentivesThe master guide to what is open and closed in 2026.- Solar grants for businessesFunding by business type and size.
- UK government solar grantsCentral and devolved government schemes.
- Full Expensing on solar25% effective tax saving, no application.
- Annual Investment AllowanceAIA on solar capital expenditure.
- Solar tax reliefEvery capital allowance that applies to PV.
- Salix funding (public sector)Interest-free loans for schools and the NHS.
- Salix Finance loansHow the Salix loan mechanism works.
- Local Growth FundMayoral and combined-authority funding.
- Rural England Prosperity FundCapital grants for rural enterprises.
- Industrial Energy Transformation FundIETF status and the routes that replaced it.
- How to apply for a solar grantThe step-by-step application process.
- Grant eligibility checkerFind the schemes your site qualifies for.