UK government — May 2026

UK government solar grants for businesses — every department's route in one place.

Solar grants for UK businesses span HM Treasury, HMRC, DESNZ, DEFRA, Mayoral Authorities, Salix Finance, Great British Energy, plus the three devolved government routes. This is the consolidated 2026 map of every UK government scheme, who runs it, who qualifies and what's still open.

HM Treasury / HMRC — tax allowances (always open)

The largest single source of UK government commercial solar funding in 2026 is not a grant — it's the corporation tax allowance system administered by HMRC. Full Expensing reimburses 25p of corporation tax per £1 of qualifying solar capex for any UK incorporated company. Annual Investment Allowance delivers the same effect on the first £1m of plant per business per year, available to sole traders and partnerships. 0% VAT on commercial solar (extended from domestic in recent budgets) saves approximately 17% on VAT-inclusive cost.

DEFRA — Rural England Prosperity Fund (active)

DEFRA programme delivered through local councils. Up to 40% of capex for rural enterprise solar. Each council sets its own scoring criteria. Active 2025-26 round in many councils with successor expected. Full REPF guide.

Mayoral Authorities — Local Growth Fund (active from April 2026)

£1.5bn over 3 years, replacing UKSPF. Restricted to 11 Mayoral Strategic Authority areas in North England + Midlands. Each authority sets its own investment plan and scoring. Full Local Growth Fund guide.

DESNZ / Salix Finance — public sector routes

The headline PSDS Phase 4 closed to new applications November 2024. Salix continues to operate other programmes: interest-free BAU loans (public sector), Low Carbon Skills Fund (HDP funding), and likely a future PSDS Phase 5 (not yet announced). Full Salix guide.

Great British Energy — Community & Public Fund (active)

Launched 2025, £5m boost for 2026. Supports community-led solar deployment for charities, faith buildings, social clubs, village halls. Not for standard commercial operators.

DESNZ — Industrial Energy Transformation Fund (closed for new applications)

IETF Phase 3 closed after Spring 2024 round following the 2025 Spending Review decision not to extend. Existing awards delivering through 2028. The Scottish equivalent (Scottish IETF / SIETF) remains active separately under Scottish Government administration.

Devolved government routes

Scotland — Scottish Government / Scottish Enterprise (active)

Scottish IETF (SIETF) covers Scottish manufacturing, food production, chemicals, data centres. Up to 30% of capex (50% for deep decarbonisation). Active windows running 2025-28. The whisky industry has been a major beneficiary. Stack with Just Transition Fund support for North-East Scotland businesses.

Wales — Welsh Government Industrial Decarbonisation (active)

Welsh-specific industrial decarbonisation funding administered through Welsh Government. Has supported several major South Wales aerospace, automotive and steel-supply-chain projects. Welsh Rural Communities Development Fund covers the rural enterprise equivalent of REPF.

Northern Ireland — Department for the Economy / Invest NI (active)

Invest NI Capital Grants are case-by-case for major industrial projects with significant decarbonisation components. Funding intensity typically 15-30% of qualifying capex. NI Industrial Energy Transformation Programme operates similarly to English IETF (when it was open).

Smart Export Guarantee — statutory, not a grant

SEG is a UK statutory mechanism (not a grant) requiring large Ofgem-licensed electricity suppliers to pay for surplus solar exported to the grid. Best 2026 commercial flat tariffs 12-18p/kWh; dynamic tariffs 25-40p/kWh peak. Full SEG guide.

Where to start

The right route for your business depends on sector, geography and ownership structure. We track every active 2026 UK government solar route and run a free funding review that produces a written shortlist within one working day. For deeper detail, the full grants and funding hub has dedicated pages on each scheme.

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 come back within one working day with a shortlist of grants and the realistic capex you can expect to recover.

Start Funding Review Call 020 4525 6101

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

UK government solar grant FAQs

What UK government solar grants are available for businesses in 2026?

UK government solar funding for businesses splits across multiple departments. Active 2026 routes: HM Treasury / HMRC tax allowances (Full Expensing, Annual Investment Allowance, 0% VAT — no application required); DEFRA Rural England Prosperity Fund (rural businesses, council-administered); Department for Levelling Up via Mayoral Authorities (Local Growth Fund, replaces UKSPF from April 2026); DESNZ Salix Finance interest-free loans (public sector); Great British Energy (community-led organisations); Scottish Government SIETF (Scottish manufacturers); Welsh Government Industrial Decarbonisation; NI DfE / Invest NI Capital Grants. The major DESNZ direct grant programmes — IETF Phase 3 and PSDS Phase 4 — closed to new applications during 2024.

Which UK government department manages solar grants for businesses?

No single UK government department owns commercial solar grant funding. Tax allowances are administered by HM Treasury / HMRC. Direct industrial grants (when active) by Department for Energy Security & Net Zero (DESNZ). Rural enterprise funding by DEFRA. Public sector loans by Salix Finance (DESNZ-backed). Local Growth Fund by Mayoral Authorities under Department for Levelling Up oversight. Devolved government departments (Scottish Government, Welsh Government, NI Department for the Economy) manage their own equivalent schemes.

Are UK government solar grants 100% funded?

Direct cash grants don't typically cover 100% of capex in 2026. PSDS Phase 4 (when active) covered 100% of eligible capex for public sector with bundled heat measures, but it closed in November 2024. The active routes typically cover 25-40% of capex. Tax allowances (Full Expensing, AIA, 0% VAT) reduce effective capex by ~40% combined for incorporated businesses. Salix BAU loans cover 100% as interest-free debt repaid from energy savings — effectively zero net cost over the loan period.

How do I find out about UK government solar grants for my business?

The fastest route is the gov.uk Business Finance Support Finder (gov.uk/business-finance-support) which now reflects the post-2024 closure status of IETF and PSDS. Sector-specific guidance from gov.scot (Scottish IETF), gov.wales (Welsh routes), and economy-ni.gov.uk (NI routes) covers the devolved equivalents. We track every active 2026 scheme — the free funding review produces a written shortlist within one working day for your specific business.

What did the UK government solar grants of 2022-24 do?

IETF Phase 3 funded approximately 150 projects totalling around £400m in awards across UK manufacturing, food production, data centres and chemicals. PSDS Phase 4 funded around 800 public sector projects totalling £530m across NHS trusts, schools, councils and central government. UKSPF supported a further several thousand SME-scale projects across all UK regions. Existing awards from these programmes continue to deliver through 2027-28; closures only affect new applications.

Explore this guide cluster

Commercial solar grants & funding

Every active 2026 route to fund commercial solar — grants, tax allowances and loans — with the eligibility and application detail behind each.

Pillar guideCommercial solar grants & incentivesThe master guide to what is open and closed in 2026.