UK commercial solar grants in 2026 — what's actually still open.

Not a grant — but for any UK incorporated business paying corporation tax, Full Expensing reimburses 25p of corporation tax per £1 of qualifying solar capex, claimed on the next CT return. AIA covers the first £1m of plant per group with the same effect. For most £150k+ projects this single mechanism beats every cash grant on net economics, with zero application risk.

• UK incorporated company paying corporation tax (companies — not sole traders)
• Plant must be new (used/refurb panels not eligible)
• Solar PV is "main pool" plant — eligible for 100% Full Expensing
• Battery storage attached to PV is eligible (HMRC clarified 2023)
• Claimed on the corporation tax return; no separate application
• Asset must remain in use; sale within 8 years triggers a balancing charge

Tip: For groups, AIA is shared across the group — schedule capex across companies to optimise.

The Smart Export Guarantee is the legal mechanism that requires Ofgem-licensed electricity suppliers (over 150,000 customers) to pay you for surplus solar exported to the grid. SEG is not a grant — it's a recurring revenue line — but for any commercial PV system that exports more than the site uses, the right SEG tariff materially affects the IRR. See our SEG explainer and supplier-by-supplier tariff comparison.

• MCS-certified solar PV (also wind, micro-CHP, AD, hydro)
• System size up to 5MW (50kW for micro-CHP)
• Smart meter capable of half-hourly export readings
• Statutory & open-ended; tariffs reset annually by each supplier
• Octopus Outgoing Agile, EDF Variable, British Gas SEG, OVO SEG, E.ON Next all live

Tip: Dynamic tariffs (Octopus Outgoing Agile) pay 25–40p/kWh during system peaks — material with a battery.

In a quietly-implemented but materially valuable change, the 0% VAT relief on solar PV originally introduced for domestic installs has been extended to commercial properties. Effectively a 20% reduction in the VAT-inclusive cost of the install, without any application or scheme paperwork. Apply at quote stage with the installer.

• Applies to the supply and installation of solar PV (and related battery storage)
• No upper cap on system size or value
• No application — installer applies the relief on the invoice
• Open-ended through current Treasury budget cycle (extended through 2027)
• Stacks with Full Expensing on the same project

Tip: Installers sometimes invoice with VAT by default — ask explicitly for the 0% rate at quote stage.

A PPA is a private finance route — not a grant — but it is the most-used commercial solar funding mechanism in the UK by capacity. A third-party investor pays for and owns the solar PV (and battery, if relevant), and you sign a 15–25 year contract to buy electricity from them at a fixed pence/kWh, typically 6–9p/kWh below grid prices. Zero capex, immediate cash savings from year one.

• 15+ year horizon at the site (most PPAs are 15–25 year terms)
• Site demand of 100,000 kWh+ annually
• Stable site host with reasonable covenant strength
• Roof or ground available for an unobstructed PV array (>250kWp typical)
• Standard structure: PPA + 25-year roof/land lease

Tip: The tariff escalator is the single biggest negotiation lever. CPI vs RPI over 25 years can swing total cost 18–22%.

REPF is administered through local councils, replacing parts of the EU LEADER scheme. Allocations vary materially by council — some have prioritised tourism-linked rural businesses, others agri-food, others creative-industry. Check your local council's 2025/26 prospectus and call for projects. Full REPF solar guide — eligibility, grant amounts, 2026 successor funds →

• Rural enterprise based in eligible English council area
• Rural premises under 30,000 m² total floor area
• Solar must be tied to productivity, decarbonisation or diversification outcomes
• Application narrative must anchor on rural growth metrics (jobs, GVA, contract revenue)
• Council-level eligibility varies — check your authority's call schedule

Tip: A productivity narrative beats a decarbonisation narrative on REPF scoring almost every time.

The Local Growth Fund replaces the closed UKSPF from 1 April 2026, with £1.5bn over three years. The catch: it is restricted to the 11 Mayoral Strategic Authority areas in the North of England and Midlands (Greater Manchester, West Midlands, Liverpool City Region, West Yorkshire, South Yorkshire, North East, Tees Valley, East Midlands, York & North Yorkshire, etc.). Outside those geographies, no equivalent national replacement exists.

• Project located within an eligible Mayoral Strategic Authority area
• Decarbonisation, productivity, or local growth outcome
• Capital grant amounts vary by authority
• Each combined authority sets its own scoring criteria and call schedule
• Applications coordinated through the relevant Mayoral Authority Investment Plan

Tip: GMCA, WMCA and Liverpool City Region have moved fastest on Investment Plan publication. Outside the eligible areas, focus on Full Expensing + PPA.

GBE's Community & Public Fund supports community-led and community-benefit solar deployment. Not for standard commercial operators — it's designed for village halls, community centres, faith buildings, social clubs and similar. A £5m boost was announced for 2026 expanding access nationwide.

• Community-led organisation, charity, social club, faith building, village hall
• Project must provide demonstrable local community benefit
• Funds early-stage development (feasibility, design, business case)
• Some calls fund full capital deployment for smaller community projects
• Operated by Great British Energy, the publicly-owned energy company

Tip: Standard commercial operators don't qualify. If you're a multi-academy trust or community-interest entity, this is worth a call.

Separate from the closed PSDS Phase 4. Salix Finance still operates an interest-free loan scheme for public sector bodies (the original "Salix BAU loans" route). Loans are repaid from the energy savings the project generates — effectively zero net cost over the loan period. Available to schools, councils, NHS trusts, central government and emergency services. Full Salix Finance guide →

• Public sector body — councils, schools, NHS trusts, central government, emergency services
• Interest-free loan, repaid from energy cost savings the project generates
• Typical loan terms 5–8 years
• Sector-dependent caps; £100k–£3m typical
• Not a grant — loan must be repaid (but from savings)

Tip: For public sector applicants who missed the PSDS Phase 4 window, Salix BAU loans are the obvious next route.

SIETF is the Scottish Government's equivalent to the (now-closed) English IETF. Administered separately by Scottish Government and Scottish Enterprise, with parallel windows that have continued through 2025–26. Manufacturing, food processing, chemicals and data centres in Scotland qualify; those outside Scotland do not.

• Scottish manufacturing, food production, data centres, chemicals
• Site demonstrably energy-intensive
• Up to 30% of capex (50% for deep decarbonisation)
• Project must reach final investment decision within 12 months of award
• Active windows running 2025–28; check Scottish Enterprise calendar

Tip: For Scottish manufacturers, SIETF is now more competitive than ever — England-side competition has shrunk because the English IETF is closed.