The Local Growth Fund — UKSPF successor for commercial solar in 11 Mayoral Authority areas.

How the Local Growth Fund actually works for commercial solar

Unlike UKSPF — which had a relatively standard SME decarbonisation grant template across most council areas — the Local Growth Fund is genuinely devolved. Each Mayoral Authority sets its own Investment Plan covering the three-year period, with its own scoring criteria, themes and call schedule. There is no centralised national application portal. Applicants engage directly with the relevant authority's economic development or growth team.

For commercial solar specifically, most authorities have included decarbonisation as one of three or four strategic investment themes. Project narratives that succeed in 2026 emphasise:

• Local economic outcomes — jobs created or retained, GVA contribution, supply-chain participation, contract revenue enabled
• Carbon savings tied to authority targets — most authorities have net-zero targets ahead of the 2050 national target; aligning your project with the authority's specific milestone year scores well
• Inward investment / cluster fit — for sites in named clusters (e.g. Trafford Park in GMCA, Liverpool Freeport in LCRCA, Aire Valley in WYCA, AMRC in SYMCA, Atom Valley in GMCA), narrative alignment with cluster strategy strengthens scoring

This is closer to traditional Regional Development Agency / RDA application work than the relatively form-based UKSPF process. Engagement starts earlier and runs longer.

The active 2026 funding stack with Local Growth Fund

For businesses in eligible Mayoral Authority areas, the LGF stacks with the rest of the active funding architecture:

• LGF (capital grant — variable, project-dependent)
• Full Expensing (25% effective tax saving on net-of-grant capex)
• 0% VAT on the install
• Smart Export Guarantee recurring revenue
• PPA route as an alternative to ownership

For a £400k commercial solar project in a Mayoral Authority area with a 25% LGF grant and Full Expensing, the effective net cost typically lands around £225k — broadly equivalent to the post-IETF economics that manufacturing projects had in 2023-24.

Application timeline

Each authority is on its own schedule. As of May 2026, the most active authorities for commercial solar applications are GMCA, WMCA and Liverpool City Region. SYMCA and WYCA have been close behind. NECA, Tees Valley and EMCCA are mid-cycle on Investment Plan approvals. The two newest authorities (Hull & East Yorkshire, Lancashire) are establishing operational capacity and most calls are not yet open.

Typical timeline once a window opens: 6-8 weeks application drafting, 8-12 weeks authority scoring, 4-6 weeks contract sign and milestone setup. Total: 18-26 weeks from kickoff to first drawdown.

What we do for Local Growth Fund applicants

For commercial solar applications targeting LGF, our standard scope: pre-application engagement with the relevant authority's economic development team to confirm fit; narrative drafting against authority-specific scoring criteria; financial modelling combining LGF + Full Expensing + 0% VAT; supplier procurement coordination; milestone monitoring through the build phase. Engagement typically 6-9 months from initial scoping to commissioning. The free funding review includes Local Growth Fund eligibility check based on your business postcode.