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 council solar — May 2026

Solar grants for UK councils and local authorities — Salix, Local Growth Fund and post-PSDS funding.

PSDS Phase 4 closed but UK councils have multiple active 2026 routes: Salix BAU loans, LCSF, Local Growth Fund (Mayoral Authority areas), Welsh and Scottish equivalents. Council-wide programmatic rollouts continue to deliver across civic, leisure, library and depot estates.

The 2026 council solar funding stack

  • Salix Finance interest-free loans (BAU) — separate from closed PSDS, repaid from energy savings, effectively zero net cost. Active for all UK public sector.
  • Low Carbon Skills Fund — Salix-administered HDP funding, typical awards £25-80k per estate. Recommended starting point.
  • Local Growth Fund — £1.5bn over 3 years, 11 Mayoral Strategic Authority areas. Capital grants for major projects.
  • Welsh Government council decarbonisation programmes (Welsh councils only)
  • Salix Scotland equivalents (Scottish councils)
  • NI DfE programmes (Northern Ireland councils)
  • Power Purchase Agreements — for larger council portfolios with strong covenant strength

Council estate building types — solar fit

Leisure centres (strongest payback)

Pool heating, refrigeration for cafe/bar, gym equipment, lighting all run continuously. Self-consumption rates 85-95%. Typical 200-500kWp projects.

Civic offices

Mon-Fri 8-6 demand profile. Self-consumption 55-72%. Typical 100-300kWp projects. BREEAM credit value often dominant in modern civic offices.

Council depots and waste sites

Mixed demand profiles. Larger depots (refuse, parks, highways) often have continuous low-load plus daytime peak from vehicle maintenance. Typical 200-500kWp.

Libraries and community centres

Variable demand patterns. Self-consumption 55-72%. Typical 30-100kWp. Often combined with community-fund elements (GBE Community Fund eligible for community-benefit aspects).

Council-maintained schools

Where the council is the maintaining authority. See schools-specific guide.

Social housing common areas (not residential)

Common-area lighting, lift motors, communal heating circulation. Modest project sizes. Council solar typically focuses on the housing depot, communal halls and similar.

Worked example — typical UK council 2026

A district council with 18 buildings (civic, leisure, libraries, depots) totalling 95,000 m²:

  • LCSF application: £45k awarded — covers HDP across all 18 sites
  • Salix BAU loan: £1.8m across 12 strongest-payback sites (combined PV + LED + BMS upgrades)
  • Local Growth Fund (council in eligible Mayoral Authority area): £350k contribution
  • Council capex contribution: £0 capex; £40k internal project management
  • Annual savings (across 18 sites): £215k
  • Loan repayment from savings: ~5 years
  • Net annual savings to council after loan: £215k/year for 18+ years

Related

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Council solar FAQs

Can UK local authorities still get solar grants in 2026?
PSDS Phase 4 (the headline council solar grant route) closed November 2024. Active 2026 routes for UK councils: Salix interest-free loans (separate from PSDS, repaid from energy savings — effectively zero net cost), Low Carbon Skills Fund (LCSF) for HDP work, Local Growth Fund where the council is a Mayoral Strategic Authority area, Welsh Government routes for Welsh councils, devolved Scottish equivalents.
What solar projects suit UK council estates?
Council estates are diverse — civic offices, leisure centres, libraries, depots, schools (where the council is the maintaining authority), social housing common areas, parks buildings. Project sizes range from 30kWp on small libraries to 1MWp+ on combined civic + leisure campuses. Self-consumption profiles vary by building type. Leisure centres (continuous demand from pools, gyms, refrigeration) are typically the strongest payback; civic offices weakest (Mon-Fri demand profile).
Do Mayoral Combined Authorities have separate solar funding?
Yes — the new Local Growth Fund (£1.5bn over 3 years from April 2026) is administered through the 11 Mayoral Strategic Authorities. Projects within these areas (Greater Manchester, West Midlands, Liverpool, West Yorkshire, South Yorkshire, North East, Tees Valley, East Midlands, York & North Yorkshire, Hull/East Yorkshire, Lancashire) can access additional capital grants on top of Salix BAU loans. Local Growth Fund detail.
How does a council typically deliver multi-site solar in 2026?
Five-step pattern: (1) LCSF application for refreshed council-wide HDP (covering all relevant council buildings); (2) prioritise sites by carbon-saving-per-£ and payback; (3) Salix BAU loan applications for the strongest-payback sites (typical loan terms 5-8 years, repaid from savings); (4) Local Growth Fund application for major sites (where in eligible Mayoral Authority area); (5) procurement through ESPO MSTAR3, NEPO 522, or YPO frameworks for installation. Total kickoff to first commissioning: 12-18 months for council-wide rollouts.
Can councils combine solar with EV charging on the same site?
Yes — and increasingly common. Combined solar + EV charging projects on council depot/leisure car parks are funded under Local Growth Fund (where eligible) or Salix BAU loans. The combined infrastructure case is stronger than either alone — solar reduces EV charging electricity cost, EV charging acts as controllable load to improve solar self-consumption.

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
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  • · 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.

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