Solar panel grants for businesses · FAQs

Yes — though most are tax reliefs and capital schemes rather than cash grants. The headline 2026 routes are full expensing (not available on solar — special-rate plant), AIA (all UK businesses, up to £1m), and the SEG export tariff. Capital grants have existed for the public sector (the PSDS, closed to new applications since November 2024), industrial sites (the IETF, closed July 2025) 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) could bid into the PSDS until its Phase 4 window closed in November 2024 — no new window had opened as of September 2026; manufacturers could access the IETF for 30-50% of capex until it closed in July 2025; 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; The PSDS and IETF (both closed) typically expected 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.

The AIA (and full expensing on any main-rate plant) is claimed through your tax return — no application. SEG is a simple supplier registration completing within 4-6 weeks. The PSDS and IETF had formal application windows; both are now closed. Regional growth hub grants typically 8-12 weeks.

Typical UK post-tax payback in 2026 is 4-6 years for limited companies using the AIA at 25% CT, 5-7 years for partnerships using the AIA at their marginal rate, 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 (the AIA — solar is special-rate, so not full expensing) + export tariff (SEG) + regional capital grant + (sometimes) sector-specific grant. The stack is constrained by state aid / subsidy control rules where applicable.

The AIA is capped at £1m per year, is available to all UK businesses and covers special-rate assets — including solar panels. Full expensing is uncapped, is for limited companies only and covers main-rate plant only, so it does not apply to solar at all. Over £1m a company gets the 50% first-year allowance on the solar balance; there is no 100% route above the cap.

No — and neither can companies: solar panels are special-rate plant, so full expensing does not apply to them. Every business type uses the AIA instead — 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 in England can use the Improving Farm Productivity grant (25% of eligible capital, under the Farming Investment Fund) for solar alongside productivity equipment, plus AIA + SEG — the FETF strand closed on 28 April 2026 and never funded rooftop solar. Welsh farms have additional Welsh Government routes; Scottish farms use Scottish Rural Development Programme. See farms guide.

Not at the moment. The PSDS — the heat-led route that funded school decarbonisation — closed to new applications in November 2024, and no new window had opened as of September 2026. The Salix Recycling Fund has not accepted new applicants since 2010. Academies can bid into the Condition Improvement Fund's annual rounds, and a third-party-funded PPA needs no capital at all. See the schools guide.

Approximately £80,000-£105,000 installed (excl. VAT). After AIA 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 + the AIA 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.