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 →

UK guide — May 2026

How to apply for a commercial solar grant in the UK — step by step.

The major direct grants of recent years (IETF (closed July 2025), PSDS, UKSPF) have closed to new applications. The active 2026 routes — REPF, Local Growth Fund, Salix loans, GBE Community Fund — each have distinct application processes. This is the working guide.

Step 1 — Identify the right route for your project

The first and most important decision in any commercial solar grant application is choosing the right scheme. Wrong-scheme applications waste 8-12 weeks of effort and assessor goodwill. The active 2026 routes by sector and geography:

  • UK manufacturers (English/Welsh) — IETF closed. Use the Annual Investment Allowance alone or with a competitive PPA. No grant application needed.
  • UK manufacturers (Scottish) — the Scottish IETF (SIETF) is closed (last call March 2025) and never funded solar PV; use the AIA and the 50% special-rate FYA.
  • Public sector bodies (NHS, councils, schools, FE) — PSDS closed. Apply for Salix interest-free loans via Salix Finance portal. LCSF for HDP funding.
  • Rural enterprises (farms, food processors, country hotels) — Apply for REPF via your local council’s economic development team.
  • Businesses in 11 Mayoral Authority areas — Apply for Local Growth Fund via the relevant Mayoral Authority investment plan.
  • Community-led organisations (charities, faith buildings, social clubs) — Apply for GBE Community Fund via Great British Energy.
  • Welsh manufacturers — Apply for Welsh Industrial Decarbonisation funding via Welsh Government.
  • Northern Irish businesses — Apply for Invest NI Capital Grants (case-by-case).
  • Tax allowances (the Annual Investment Allowance, AIA) — No application; claimed automatically.

Step 2 — Pull half-hourly meter data and run the energy audit

Every UK commercial solar grant application requires energy data. The standard expectation is 2-4 years of half-hourly meter data, broken down by load type. This is what funders use to validate that the project sizing is sensible and that solar will actually displace material electricity.

Not sure which grants apply to your business? Use the grant eligibility checker to find out in 60 seconds. Half-hourly data is typically obtained from your electricity supplier (Octopus, EDF, British Gas, etc.) on request. Larger commercial sites have it as standard with their MIC (Maximum Import Capacity) contracts. We pull this data as the first step of any client engagement and run an energy audit identifying load patterns, daytime vs overnight demand, weekend operation, seasonal variation. The audit informs system sizing and the funder narrative.

Step 3 — Build the MCS-compliant system design

Funders want to see a properly engineered design — not a back-of-envelope sizing. The standard documentation:

  • System sizing rationale tied to half-hourly demand profile
  • Module and inverter selection (Tier 1 modules, commercial-grade inverters)
  • PVsyst yield assessment for the specific site latitude, orientation and shading
  • Mounting structure specification
  • Single-line electrical diagram showing AC connection
  • G99 DNO application status
  • Structural assessment (engineer’s report on roof load capacity)

Step 4 — Build the financial model

Funders score on net economics, not gross. The financial model must show:

  • Headline capex broken down by line (panels, inverters, mounting, DNO, install, design, contingency)
  • Annual generation (kWh/year, year by year for 25 years with degradation)
  • Self-consumption rate from half-hourly modelling
  • Annual savings (electricity displacement + SEG export)
  • Tax effects (the Annual Investment Allowance/AIA on net of grant)
  • Three energy price scenarios (base, upside, downside)
  • NPV at funder-specified discount rate (HM Treasury Green Book 3.5% real for public sector)
  • IRR and payback period
  • Sensitivity analysis

Step 5 — Write the funder-specific narrative

This is the highest-leverage part of the application. Each scheme rewards different scoring criteria:

REPF

Productivity outcomes — jobs created or supported, contract revenue enabled, GVA contribution, rural enterprise diversification. Decarbonisation is a secondary factor. We have written REPF narratives that anchored on contract grain-drying enabling 2 seasonal jobs as the primary scoring driver.

Local Growth Fund

Local economic outcomes aligned to the relevant Mayoral Authority’s investment plan themes. Cluster fit — for sites in named clusters (Aire Valley logistics in WYCA, Atom Valley in GMCA, AMRC in SYMCA), narrative alignment with cluster strategy strengthens scoring. Authority-specific net zero milestones if the authority has a target ahead of 2050.

Salix BAU loans

Loan repayment from energy savings — the financial model must show savings cover repayments with margin. Savings calculation methodology aligned to Salix preferred metrics. Project timeline tied to public sector procurement frameworks.

Scottish IETF

SIETF assessors scored carbon savings per pound of grant; the fund closed in March 2025 and solar PV was never an eligible deployment. Bundled measures (PV + heat + process electrification) score higher than standalone PV. Deep Decarbonisation route requires specific narrative on pathway alignment.

Step 6 — Submit and manage clarifications

Submission is via the funder’s portal (each scheme has its own). After submission, expect 4-12 weeks of funder review. Most funders raise clarification questions during review — typically focused on energy data interpretation, monitoring methodology, and supplier quotation quality. Most clarifications resolve within 48 hours of being raised. Award decisions come as a batch at window close.

Step 7 — Award, contract and milestone delivery

On award, the funder issues a grant funding agreement covering deliverables, milestones, monitoring requirements and clawback conditions. Project delivery typically runs 12-16 weeks for sub-1MW commercial rooftop projects. Grant funding draws down against actual milestones, with monitoring & verification (M&V) continuing for 18-36 months post-commissioning.

What we do for clients

The free funding review takes 4 minutes. We reply by email with a written shortlist of routes you would credibly use, the documentation needed for each, and the realistic timeline. Engagement fees only kick in if you ask us to write the application — initial scoping is always free.

Free funding review

See which grants your business qualifies for — free 20-minute funding review.

Tell us your sector, roof size and energy spend. We reply by email with a shortlist of grants and the realistic capex you can expect to recover.

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

Application FAQs

How do I apply for a UK commercial solar grant in 2026?
The application process depends on which grant route applies to your business. The active 2026 routes and their application processes: Local Growth Fund — apply via the relevant Mayoral Authority's investment plan portal. Salix BAU loans — apply via the Salix Finance portal. The Scottish IETF is closed (last call March 2025; no new call announced). GBE Community Fund — apply via Great British Energy directly. Tax allowances (the Annual Investment Allowance, AIA) and SEG — no application required.
What documents do I need for a commercial solar grant application?
For competitive funding (Local Growth Fund, Salix BAU loans), the standard document set includes: (1) Energy audit referencing 2-4 years of half-hourly meter data, (2) MCS-compliant PV system design with PVsyst yield model, (3) Three supplier quotes for the work, (4) Financial model showing capex, opex, payback, IRR and NPV, (5) Carbon savings narrative (tCO2e per pound of grant — the metric assessors anchor on), (6) Business case anchoring on the funder's scoring criteria (productivity for REPF, local economic outcomes for Local Growth Fund), (7) Decarbonisation roadmap or Heat Decarbonisation Plan where applicable.
How long does a commercial solar grant application take?
For competitive grants, allow 6-10 weeks of preparation effort and 8-12 weeks of funder review. Total kickoff to grant decision: 16-22 weeks. Tax allowances and SEG sign-up are immediate — no application timeline. We can compress preparation to 4-6 weeks for clients with clean half-hourly meter data and an existing decarbonisation strategy document.
What's the success rate for UK commercial solar grant applications?
Success rates vary widely by scheme and year, and most schemes publish their own figures. Stronger applications tend to do three things: (1) only applying for routes the project genuinely fits, (2) anchoring the application narrative on the funder's actual scoring criteria, (3) ensuring all documentation is complete and consistent before submission.
Do I need a consultant to apply for a UK commercial solar grant?
No, but it materially improves outcomes for £150k+ projects. ...and the application timeline competition for Local Growth Fund means well-prepared submissions land in pole position. (The Scottish IETF’s last call closed in March 2025.)
What happens if my commercial solar grant application is rejected?
For most schemes, you can resubmit in the next window with a strengthened application. Funders typically provide feedback identifying scoring weaknesses. The most common rejection reasons: (1) energy data thin or inconsistent, (2) decarbonisation narrative under-developed, (3) financial model assumptions over-optimistic on energy prices, (4) wrong scheme route chosen for the project type.

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.

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.

What we will not do
  • · We do not pass your details to multiple installers.
  • · We do not run a lead auction, and your phone number is optional.
  • · No marketing lists, no unsolicited calls.
  • · We are an independent funding information service — not an installer.

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. A phone number is not required.