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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Reviewed by the Commercial Solar Grants funding team Last updated June 2026 Independent — we take no installer commission

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.

What changed this month — verified June 2026
  • 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.

Before support
  • Installed cost: ~£75,000 (£750/kWp turnkey)
  • Annual saving + export: ~£11,000/yr
  • Simple payback: ~6.8 years
After Full Expensing + 0% VAT (+ REPF where rural)
  • 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.

  1. Check eligibility — confirm which routes you can credibly use by sector, geography and ownership (use the qualifier table above).
  2. 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).
  3. 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.
  4. Write and submit the application — prepare the funder-specific case (energy baseline, business case, evidence pack) and submit before the window closes.
  5. Funder review — allow 8-12 weeks of assessment for competitive grants.
  6. 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:

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 funding review 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.
Are there grants for commercial solar panels?
Yes — there are grants for commercial solar panels in 2026, but the landscape is mixed. The headline cash-grant schemes (IETF Phase 3, PSDS Phase 4, UKSPF) have all closed to new applications. What remains open is REPF (rural businesses, up to 40% of capex), the Local Growth Fund (Mayoral-Authority areas), Salix interest-free loans (public sector), plus the devolved-nation routes. On top of any grant, every UK business gets Full Expensing (~25% tax saving) and 0% VAT, which together cut effective capex by roughly 40%.
How much do commercial solar panel grants cover?
Coverage depends on the route. Direct cash grants typically cover 25-40% of capex — REPF up to 40%, Local Growth Fund 20-40%, Scottish IETF 30-50%, Invest NI 15-30%. The UK-wide tax stack (Full Expensing ~25% plus 0% VAT ~17%) reduces effective capex by around 40% on its own, and Salix loans cover 100% as interest-free debt repaid from energy savings. Stacked, a rural or devolved-nation project can see effective support of 50-65% of headline capex.
Can businesses get 100% funded solar?
Not as a single cash grant for new applications in 2026. The closest is a Salix BAU interest-free loan (public sector), which funds 100% of the capital cost but must be repaid from the resulting energy savings — so it is fully financed rather than free. Privately, a Power Purchase Agreement (PPA) delivers solar with zero upfront capex: a third-party investor pays for and owns the system, and you simply buy the electricity at a fixed, below-grid rate. Pure 100% grants ended when PSDS Phase 4 closed in November 2024.
Is there commercial solar funding in Scotland, Wales or Northern Ireland?
Yes, and it differs sharply by nation. Scotland has the Scottish IETF (SIETF) for manufacturers plus interest-free Business Energy Scotland SME loans. Wales runs the Welsh Industrial Decarbonisation programme alongside Development Bank of Wales lending. Northern Ireland offers Invest NI capital grants (15-30%, case-by-case). All three sit on top of UK-wide Full Expensing and 0% VAT. See our dedicated Scotland, Wales and Northern Ireland pages.
What replaced IETF and PSDS for commercial solar?
No like-for-like cash grant replaced them. For private manufacturers, the functional successor stack is Full Expensing plus a PPA (England) or the Scottish IETF (Scotland only). For the public sector, Salix BAU interest-free loans remain active and the Local Growth Fund covers Mayoral-Authority areas. Beware installer pages that imply IETF or PSDS is still open — both closed during 2024 and neither has a confirmed reopening. As an independent funding desk we track this monthly rather than leaving stale claims live.
How do I apply for a commercial solar grant?
Apply in six steps: confirm eligibility by sector, geography and ownership; review which open routes you can credibly use; obtain MCS-certified quotes and system sizing; write and submit the application (the part we handle for clients); wait for funder review (8-12 weeks for competitive grants); then draw down the funding and proceed to install. Tax allowances (Full Expensing, AIA, 0% VAT) and SEG sign-up need no application — they are claimed on your return or at invoice.
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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.