UK commercial solar — May 2026
UK commercial solar glossary — every term, scheme, regulator.
Every UK commercial solar funding scheme, technical term, regulator and acronym — with active/closed status flagged for every grant scheme. Updated May 2026.
UK commercial solar grant scheme status — May 2026
The UK commercial solar funding architecture has changed substantially in 2024-26. Several major programmes have closed and we operate the active 2026 stack only.
| Scheme | Status | Summary |
|---|---|---|
| Annual Investment Allowance | ACTIVE | 25% effective tax saving for incorporated companies |
| AIA | ACTIVE | 100% allowance up to £1m for unincorporated |
| SEG | ACTIVE | Export tariffs 3p-15p/kWh flat (more on dynamic) |
| REPF | ENDED | Ended March 2026; no national successor confirmed |
| Local Growth Fund | ACTIVE | 11 Mayoral Strategic Authority areas, £902m over four years |
| Salix BAU loans | ACTIVE | Public sector interest-free decarbonisation loans |
| GBE Community Fund | ACTIVE | £200m for community-scale renewables |
| Scottish IETF | CLOSED | Last call closed March 2025; never funded solar PV |
| Welsh Industrial Decarbonisation | ACTIVE | Welsh Government for Welsh industrial sites |
| Freeport ECAs | ACTIVE | Enhanced Capital Allowances in 8 UK Freeport tax sites |
| Investment Zone ECAs | ACTIVE | WMCA, WYCA, SYMCA, NEMCA, others |
| PPA | ACTIVE | Multi-MWp PPA frameworks at 5.5-9p/kWh |
| OZEV WCS | ACTIVE | £500/socket for workplace EV charging |
| English IETF | CLOSED | Phase 3 closed Spring 2024, no Phase 4 |
| PSDS Phase 4 | CLOSED | Closed November 2024, no Phase 5 announced |
| UKSPF | CLOSED | Closed March 2026 (replaced by Local Growth Fund) |
A-Z technical and funding glossary
AIA
Annual Investment Allowance — first-year capital allowance up to £1m on qualifying plant for unincorporated businesses, partnerships and sole traders. For incorporated companies, the Annual Investment Allowance has largely superseded AIA. Detail →
BREEAM
Building Research Establishment Environmental Assessment Method — UK environmental certification for buildings. BREEAM Outstanding/Excellent ratings frequently require on-site renewable generation; solar PV contributes Energy (Ene01, Ene04) credits. Detail →
DNO
Distribution Network Operator — regional electricity distribution monopoly (UKPN, NPg, ENWL, NGED, SSEN, SP Energy Networks). DNOs approve grid connection applications (G98 for sub-3.68kW per phase, G99 above). Detail →
ECA
Enhanced Capital Allowance — 100% first-year allowance on qualifying plant. Active 2026 in UK Freeport tax sites and Investment Zones; an alternative to the Annual Investment Allowance, not an addition to it. Detail →
EfW
Energy from Waste — combustion-based electricity and heat generation from non-recyclable waste. Major UK operators include Cory, Viridor, Veolia. Detail →
EPC
Engineering, Procurement and Construction contract — single-contractor turnkey delivery model dominant in UK commercial solar. Alternative: split contracts with separate D&B and EPCM packages.
Annual Investment Allowance
100% first-year capital allowance on qualifying plant for incorporated companies (active since April 2023, made permanent in 2024). Effective tax saving 25% on solar PV capex at 25% main rate corporation tax. Detail →
GBE
Great British Energy — UK Government-owned clean energy company launched 2024. Operates a Community Fund (£200m) plus Local Power Plan supporting community-scale renewables.
G99
Energy Networks Association Engineering Recommendation G99 — DNO approval process for grid-connected generation above 16A per phase. Required for almost all commercial solar installations. Typical turnaround 60-120 working days.
IETF
Industrial Energy Transformation Fund: closed. The English IETF’s last window shut on 19 April 2024 and the fund closed in July 2025 with no successor; it never funded solar PV. The Scottish IETF (SIETF) closed its last call in March 2025. Detail →
Local Growth Fund
£1.5bn (over 3 years from April 2026) UKSPF successor for the 11 Mayoral Strategic Authority areas: Greater Manchester, West Midlands, Liverpool, West Yorkshire, South Yorkshire, NEMCA, East Midlands, Tees Valley, West of England, Cambridgeshire-Peterborough (pre-Mayoral exclusion), GLA London. Detail →
MCS
Microgeneration Certification Scheme — UK certification for renewable installers and product. MCS commercial certification (Solar PV ≥50kWp scope) required for SEG eligibility.
MWp
Megawatt-peak — installed capacity rating of solar PV (1 MWp = 1,000 kWp). UK 2026 commercial solar deployments routinely 1-15 MWp single-roof.
OZEV
Office for Zero Emission Vehicles — UK Government department managing EV charging grants including Workplace Charging Scheme (WCS) and EV Infrastructure Grant for Staff and Fleet. Detail →
PPA
Power Purchase Agreement — long-term electricity supply contract between solar generator and off-taker. UK 2026 commercial solar PPAs typically 15-25 years at 5.5-9p/kWh fixed (or RPI-linked). Detail →
PSDS
Public Sector Decarbonisation Scheme — Salix-managed capital grants for English public sector decarbonisation. PHASE 4 CLOSED November 2024 (no Phase 5 formally announced as of May 2026). Salix BAU loans remain active.
PV
Photovoltaic — solar cell technology converting sunlight to electricity. Typical UK commercial deployment uses 400-450W monocrystalline modules.
PVsyst
Industry-standard solar yield modelling software. UK commercial solar quotes should specify PVsyst-derived annual yield in kWh/kWp.
REPF
Rural England Prosperity Fund — successor to LEADER funding for rural English businesses, capital grants up to £100k typically. Administered via District Councils (rural classification eligibility). Detail →
SBTi
Science Based Targets initiative — corporate net zero target validation framework. Major UK companies (Tesco, M&S, Unilever, BT, AstraZeneca) have validated SBTi targets. Detail →
SEG
Smart Export Guarantee — UK regulatory scheme requiring electricity suppliers to pay for surplus solar export. 2026 position (verified July 2026): the best flat tariffs cluster at about 12p — Octopus Outgoing Fixed (cut from 15p to 12p on 1 March 2026), EDF Export 12M Small Business and Scottish Power SmartGen Premium — while the highest overall returns come from dynamic tariffs such as Octopus Outgoing Agile and Flux for sites with battery storage. Detail →
SIC
Standard Industrial Classification — UK business activity coding. IETF (closed July 2025) eligibility historically anchored on specific SIC codes (10, 11, 17, 18, 20, 22, 23, 24, 25, 27, 28, 29, 30, 31).
UKSPF
UK Shared Prosperity Fund — replaced EU Structural Funds 2022-26. Closed for new applications March 2026. Local Growth Fund is the successor for Mayoral Strategic Authority areas.
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Pillar guides by topic
All UK funding schemes
Master overview
Annual Investment Allowance
25% effective tax saving
Local Growth Fund
11 Mayoral Authorities
PPAs
5.5-9p/kWh fixed tariffs
SEG export tariffs
3p-15p/kWh flat
Commercial EV charging
Hardware, install, OZEV
Battery storage
£350-550/kWh
Commercial heat pumps
ASHP, GSHP, high-temp
Net zero business
SBTi, full decarb stack
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.
- heat pump capex for commercial buildings
Special-rate integral feature: AIA up to £1m, then the 50% special-rate first-year allowance for companies; full expensing does not apply.
- commercial battery storage costs and ROI
Probably main-rate plant (HMRC has no specific guidance, so confirm with your adviser). Stacks with solar for self-consumption.
- what commercial solar costs per kWp
Capex bands per kWp before any relief.
- rooftop solar on industrial premises
Large roofs, high daytime load — the strongest case.
- the Annual Investment Allowance explained for solar
Solar is special-rate, so AIA is the 100% year-one route.
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.
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