Solar panel grants for businesses · FAQs

Yes — though most are tax reliefs and capital schemes rather than cash grants. The headline 2026 routes are 100% Full Expensing (limited companies), AIA (all UK businesses, up to £1m), and the SEG export tariff. Capital grants exist for public sector (PSDS), industrial sites (IETF) and via regional growth hubs.

Genuinely 'free' commercial solar in 2026 usually means a Power Purchase Agreement (PPA) — a third-party investor funds the installation and sells you the electricity at a fixed discount to grid rates. It's not a grant. For genuinely subsidised installations, public sector (schools, NHS, councils) can access 100% PSDS funding; manufacturers can access IETF for 30-50% of capex; SMEs can stack regional growth hub grants of £1k-£25k. See PPA guide.

Depends on the scheme. SEG requires MCS for systems up to 50kWp; AIA and Full Expensing don't require MCS at all; PSDS and IETF typically expect MCS or equivalent for the PV element. Regional growth hub grants vary — always check scheme rules. We recommend MCS-certified installers regardless because consumer protection and warranty terms are stronger.

AIA and Full Expensing are claimed automatically through your corporation tax return — no application. SEG is a simple supplier registration completing within 4-6 weeks. PSDS and IETF have formal application windows and take 3-6 months. Regional growth hub grants typically 8-12 weeks.

Typical UK post-tax payback in 2026 is 4-6 years for limited companies using Full Expensing, 5-7 years for partnerships using AIA, and 3-5 years where regional capital grants apply. 25-year IRR is 12-22% depending on usage profile, system size and grant stack.

Yes — and most successful 2026 projects do. Typical stack: tax relief (Full Expensing or AIA) + export tariff (SEG) + regional capital grant + (sometimes) sector-specific grant. The stack is constrained by state aid / subsidy control rules where applicable.

AIA is capped at £1m per year and available to all UK businesses; Full Expensing is uncapped and limited to UK limited companies. For projects under £1m, both deliver 100% first-year deduction — the difference is in disposal treatment. For projects over £1m, only Full Expensing applies.

No. Full Expensing is limited to UK limited companies. Sole traders, partnerships and LLPs use AIA instead — same 100% first-year deduction up to £1m.

Standard 20% VAT applies to commercial solar installations. VAT-registered businesses can reclaim it through their VAT return. Some charity installations qualify for reduced 5% VAT under VAT Notice 708/6.

Not hotel-specific, but most hotels use AIA + SEG + (where eligible) regional growth hub grants. See hotels grants guide.

Farms can use Farming Investment Fund (FETF) for solar combined with productivity equipment, plus AIA + SEG. Welsh farms have additional Welsh Government routes; Scottish farms use Scottish Rural Development Programme. See farms guide.

Yes — through PSDS, state-maintained schools and many academies can access 100% capital grant. Salix Recycling Fund provides 0% loans for revenue-positive projects. See schools guide.

Approximately £80,000-£105,000 installed (excl. VAT). After 100% Full Expensing tax relief, net cost is around £60,000-£79,000 for limited companies at the 25% main CT rate. See cost & payback page.

Panels, inverters, DC and AC cabling, mounting (rail or ballast), DC and AC isolators, monitoring system, MCS certification, DNO G99 application, commissioning, 25-year panel warranty, 10-year workmanship warranty. Battery storage is typically a separate line item.

Depends on your business structure, tax position, capex availability and property tenure. For profitable limited companies, asset finance + Full Expensing is typically best. For loss-making businesses, operating lease often wins. For large systems with limited capex, PPA. See cash vs finance decision framework.

Yes — but with exit fees. Typical PPA exit fees fall over time, starting at 100-150% of remaining payments in year one and stepping down to 0-20% by year 15. Read the contract carefully — exit terms vary dramatically between providers.

G99 is the UK Engineering Recommendation governing the connection of generating plant to the distribution network. Most commercial solar systems above 16A per phase require a G99 application to your DNO before connection. Approval typically takes 5-11 weeks.

Distribution Network Operator. The DNO owns and maintains the local electricity distribution network. There are 6 main UK DNOs: UKPN (Southern + East), Northern Powergrid, SP Energy Networks (Scotland), Western Power Distribution (Wales + Midlands), Electricity North West, and SSEN (Scottish & Southern). Some larger industrial sites also have Independent DNOs (IDNOs).

Most commercial rooftop solar installations qualify under Permitted Development Rights and don't require full planning consent. Exceptions: listed buildings, conservation areas, World Heritage Sites, and ground-mount installations above 9m² in some cases. Always confirm with your local planning authority.

A short online form (under 60 seconds) asking about your sector, property type, electricity spend, postcode and ownership structure. We use this to match your business against every active 2026 grant, tax relief and finance route, then email you a 2-3 page eligibility report within one business day.

No. We make outbound calls only at your explicit request and at a scheduled time. We do not share your details with third parties (including installers) without your specific consent.