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 →

Energy Efficiency

Commercial Energy Efficiency Packages UK

Solar PV, LED lighting, heat pumps, battery storage, EV charging and smart controls — bundled into a single grant-funded project for UK commercial buildings. One survey, one contract, one application. Net cost typically 40–55% of gross capex after the Annual Investment Allowance and 0% VAT.

45%
Typical net cost vs gross capex
60–75%
Energy cost reduction target
3–7 yr
Payback on net-of-incentives cost
Free energy audit
Independent
180+
Projects
£42m
Secured
4.5yr
Avg Payback
MCS NICEIC RECC TRUSTMARK
How it works

How grants apply to energy efficiency

1
01

Free energy audit

We review your energy bills, EPC rating, and building services to identify which measures deliver the fastest payback and largest grant coverage. Output: prioritised measure list with costings.

2
02

Bundle for maximum incentives

0% VAT applies to solar, heat pump and insulation together. The Annual Investment Allowance covers all plant and machinery in one Year 1 CT claim. OZEV WCS covers EV chargers. One invoice, maximum incentives.

3
03

Single contractor delivery

Our MCS-certified delivery partners install all measures under one contract — solar, BESS, heat pump, LED, EV charging. One mobilisation, one commissioning, one warranty package.

Why bundle measures into one project

Bundling qualifies for maximum grant stacking — 0% VAT, the Annual Investment Allowance, OZEV WCS — while reducing mobilisation cost through a single contractor visit.

☀️
Solar PV
30–60% grid import reduction

Foundation measure. 0% VAT, the Annual Investment Allowance, SEG export income. Co-location with BESS and heat pump compounds savings.

💡
LED Lighting
60–75% lighting energy reduction

Fast standalone payback (3–5 yr). AIA-eligible. Reduces heat load from lighting, improving HVAC efficiency downstream.

🔥
Heat Pump
Replace gas at 3.5–5× efficiency

Annual Investment Allowance, Salix Finance (public sector), 0% VAT with solar co-location. Solar-powered heat at near-zero marginal cost.

🔋
Battery Storage
80–90% solar self-consumption

0% VAT co-located with solar. The Annual Investment Allowance. BESS captures midday solar surplus for evening demand peaks and time-of-use arbitrage.

🚗
EV Charging
Near-zero marginal fuel cost

OZEV WCS (£14,000/site), EVIG (75% fleet depot), the Annual Investment Allowance on remainder. Solar shifts charging to daylight hours automatically.

🏗️
Smart Controls
15–25% HVAC energy reduction

BMS optimisation, occupancy-based control, demand response. The Annual Investment Allowance. No structural changes — software and sensor upgrades.

Energy efficiency by location

Local grant routes, MEES compliance info and sector-specific guidance for your city:

Commercial energy efficiency FAQs

What grants are available for commercial energy efficiency in 2026?
The 2026 active stack includes the Annual Investment Allowance (25% CT relief on all qualifying plant — solar, BESS, heat pump, LED, EV charging), 0% VAT on renewable energy measures bundled with solar, OZEV WCS for EV charging (£14,000 per site), Salix interest-free loans for public sector bodies, and REPF for rural enterprises (up to 40% capex). IETF and PSDS both closed in 2024. Combined, the active stack reduces net project cost to 40–55% of gross capex for most commercial sites.
Why bundle energy efficiency measures into one project?
Bundling solar, LED, heat pump, BESS and EV charging into a single project maximises grant stacking: 0% VAT applies to the combined renewable installation; the Annual Investment Allowance covers all qualifying plant in one Year 1 CT claim; OZEV WCS covers EV chargers within the same project. One contractor mobilisation costs less than five sequential visits. One G99 DNO application. One commissioning. One IBW warranty package.
How much does a full commercial energy efficiency package cost?
A bundled solar + LED + heat pump + BESS + EV charging installation for a typical UK SME (5,000 m² building) costs £350,000–£700,000 gross. After the Annual Investment Allowance (25% CT), 0% VAT (~17% on VAT-inclusive cost) and OZEV WCS (£14,000 for chargers), effective net cost is typically £160,000–£330,000. Annual energy savings of £55,000–£100,000 give payback of 3–5 years on net cost.
What is the most cost-effective commercial energy efficiency measure?
LED lighting delivers the fastest standalone payback (typically 3–5 years) with no planning or DNO requirements. Solar PV delivers the largest absolute saving. Heat pumps are most impactful where replacing oil or LPG heating. BESS accelerates solar payback. The optimal sequence for most SMEs: LED first (quick wins), then solar + BESS (largest financial return), then heat pump if replacing oil/LPG.
How do I get a free commercial energy efficiency audit?
Use the quote form on this site — it takes under 4 minutes. We review your energy bills, current EPC rating and building services, then return a prioritised measure list with costings and the full funding stack specific to your site within one working day. About a third of sites we assess are advised against proceeding — we say so before any application work begins.
Free funding review

Free commercial energy efficiency audit

We identify every qualifying measure, model the savings, and return a bundled grant project plan within one working day.

No obligation. We don't charge for grant scoping.

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.

Free funding review

Find out which 2026 schemes your site actually qualifies for

What you get, within one working day
  • 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.

What we will not do
  • · 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.

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. No phone number required, ever.