The Energy Technology List route to Enhanced Capital Allowances ended in April 2020. What replaced it for commercial solar: AIA, the 50% first-year allowance, and Freeport ECAs.
The Enhanced Capital Allowances (ECA) scheme **ended in April 2020**. It is not a relief you can claim on a solar project today, and any site telling you otherwise is working from withdrawn guidance.
While it ran, ECA gave a 100% first-year allowance on energy-saving equipment listed on the Energy Technology List (ETL) — a list maintained by the Carbon Trust covering around 60 categories including some inverters, energy management systems, pumps, motors and lighting. GOV.UK's own ETL guidance now records the scheme "ending in April 2020". Being on the ETL confers no capital allowance.
What to use instead. The Annual Investment Allowance gives 100% first-year relief on up to £1m of qualifying spend a year and covers special-rate assets such as solar panels, so for most commercial solar projects the whole cost is still relieved in year one. Above the £1m cap, companies claim the 50% special-rate first-year allowance on the balance, with the remainder written down at 6% a year. Note that solar does not qualify for full expensing — see why solar cannot use full expensing.
One live exception, easily confused with the old scheme: **Freeport and Investment Zone enhanced capital allowances**. These are a separate, current relief for new plant used in a designated tax site, and they are unrelated to the ETL. If your site sits inside a Freeport or Investment Zone tax site, that route may be open to you — check the designation before assuming it applies. Take your own tax advice.
| Status | Withdrawn for expenditure from April 2020 |
| Relief rate | None. Use AIA (100% to £1m) or the 50% special-rate FYA |
| Live equivalent | Freeport / Investment Zone ECAs, in designated tax sites only |
| Practical relevance for solar | None via the ETL. Solar is relieved through AIA or the 50% FYA |
| ETL maintainer | Carbon Trust |
| Last major update | Scheme ended April 2020 |
There is nothing to apply for — the ETL route to Enhanced Capital Allowances closed to new expenditure in April 2020. Do not budget for it and do not let a supplier price it into a proposal.
If you are costing a solar project now:
Enter the qualifying spend in the capital allowances section of your CT600 or Self Assessment return. The AIA covers special-rate assets including solar panels, up to £1m a year. There is no separate application.
Companies claim the 50% special-rate first-year allowance on the balance above the cap. Sole traders, partnerships and LLPs use AIA only — the 50% FYA is companies-only.
Ask your installer to itemise the special-rate element (the panels) separately from other qualifying plant such as the electrical system. Your accountant needs that split whichever route you take.
If the installation site sits within a designated tax site, enhanced capital allowances may be available under that entirely separate regime.
Take your own tax advice before claiming.
Most successful 2026 commercial solar projects use a combination of schemes — this is where independent advice earns its keep. Enhanced Capital Allowances ended in April 2020 — what to claim on solar instead typically combines well with:
Solar panels are special-rate plant, so companies cannot claim 100% full expensing on them. HMRC allows the 50% first-year allowance instead...
Not available on solar panels. AIA 100% up to £1m, or the 50% special-rate first-year allowance
AIA 2026 guide — how UK businesses claim 100% first-year tax relief on commercial solar PV up to £1m. Eligibility, calculation worked exampl...
Up to £1 million per year, 100% first-year deduction
The Enhanced Capital Allowances (ECA) scheme **ended in April 2020**. It is not a relief you can claim on a solar project today, and any site telling you otherwise is working from withdrawn guidance.
As of May 2026, the scheme's funding status is: Closed — no ETL-based allowance on expenditure from April 2020. We re-check application windows monthly — if this is critical to your planning, request an eligibility check for the current programme status.
Typical award range: Withdrawn April 2020 — claim AIA or the 50% first-year allowance instead. The size of any individual award depends on project capex, sector eligibility, match funding available and the scheme's per-applicant cap.
Historic — HMRC. The ETL no longer confers a capital allowance. Applications are submitted through the administrator's process — we link the relevant gov.uk and scheme pages at the bottom of this guide.
The scheme is closed. The ETL route to Enhanced Capital Allowances ended in April 2020 and no expenditure since then attracts it. If a supplier prices ECA into a proposal, that proposal is wrong. Being on the Energy Technology List means nothing for tax now. The list still exists as a procurement reference, but appearing on it confers no capital allowance. Do not confuse it with Freeport and Investment Zone enhanced capital allowances. Those are a separate, live relief for new plant used in a designated tax site, and they have nothing to do with the ETL.
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