Annual Investment Allowance for business solar
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
Capital grant (agriculture) · Updated 12 May 2026
Farming Investment Fund for on-farm solar PV
Farming Investment Fund 2026 (FIF) — DEFRA capital grants for English farms installing on-farm solar PV. Productivity, slurry, water and equipment grants.
Overview
The Farming Investment Fund is DEFRA's replacement for the EU Common Agricultural Policy's Rural Development Programme. Launched in 2022, it provides match-funded capital grants for English farmers and horticultural businesses to invest in productivity-improving equipment — including solar PV when integrated with on-farm energy needs (refrigeration, slurry handling, milking, grain drying, controlled-environment horticulture).
The FIF comprises several distinct strands. The Farming Equipment and Technology Fund (FETF) is the most relevant for solar — small grants of £2,500-£25,000 per item, with annual funding rounds. The Farming Transformation Fund makes larger awards for major projects (£50k+). The Farming Resilience Fund supports business planning and advice. For a typical farm installing 20-50kWp of solar PV alongside other productivity investments, the FETF is the practical route.
Key facts at a glance
| Programme name | Farming Investment Fund (FIF) — comprising FETF, Farming Transformation Fund, and Farming Resilience Fund |
| Typical solar grant size | £25,000 – £100,000 |
| Match funding | Typically 40-60% from the farmer |
| Application route | Rural Payments Agency online portal |
| Eligible nations | England (Scottish, Welsh and NI farms use devolved schemes) |
| Common project type | Solar PV + battery + slurry pumps / refrigeration |
Eligibility criteria
- England-only — Scottish, Welsh and Northern Irish farms have separate devolved schemes (Scottish Rural Development Programme, Sustainable Production Grant for Wales, Northern Ireland Capital Grant Scheme).
- Farming business — defined by DEFRA as having a holding registered for Single Payment Scheme / Basic Payment Scheme.
- SME status.
- Solar PV must be integrated with productive farming activity (not standalone solar farm investment).
- Equipment must come from the DEFRA pre-approved list (or qualify under the bespoke project route).
- Match funding from non-government sources required.
How to apply
Step 1 — Check the current FETF item list.
The list of pre-approved items is published on gov.uk and is updated for each funding round.
Step 2 — Get supplier quotes.
Quotes must come from suppliers offering the specific listed item codes.
Step 3 — Register on the Rural Payments Agency online portal.
Most English farms are already registered for BPS payments.
Step 4 — Submit the FETF application.
Online application — typically a single online form per round. The application window is usually 6-8 weeks.
Step 5 — RPA assessment.
Applications are typically assessed within 6 weeks of close of round. Decisions are scored on item type, business size and geographic spread.
Step 6 — Letter of Offer.
Successful applicants receive a Grant Funding Agreement with delivery and reporting obligations.
Step 7 — Project delivery.
Typically you have 12 months from offer to install and claim. Final grant is paid on submission of invoices and commissioning evidence.
Watch-outs and pitfalls
- FETF item lists are restrictive. Solar PV qualifies only under specific item codes — typically integrated with refrigeration, slurry handling, grain drying or LED horticultural lighting. Standalone rooftop solar without an agri-productive use case won't qualify for FETF.
- For larger or bespoke solar projects, the Farming Transformation Fund is the better route — but applications are more complex and the assessment process is longer.
- Scotland, Wales and Northern Ireland have separate schemes. Welsh farmers use the Sustainable Production Grant; Scottish farmers use the Scottish Rural Development Programme.
- Match funding must be evidenced. RPA expects evidence of available funds at application — not just intent to borrow. Pre-arrange asset finance or commercial debt before applying.
- Subsidy control. The De minimis ceiling of £160k over 3 years applies to most FETF awards.
Stacking with other grants and reliefs
Most successful 2026 commercial solar projects use a combination of schemes — this is where independent advice earns its keep. Farming Investment Fund for on-farm solar PV typically combines well with:
- Annual Investment Allowance for business solar — Up to £1 million per year, 100% first-year deduction
- Smart Export Guarantee for businesses — 3p–15p per kWh exported (2026 fixed tariffs)
- Regional growth hub grants for business solar — £1,000 – £25,000 typical (match-funded, usually 40-60%)
Sources & further reading
Related schemes
Tax relief Income scheme Capital grant
Other relevant grants & reliefs
Smart Export Guarantee for businesses
Smart Export Guarantee 2026 guide for UK businesses — best export tariffs, eligibility for 50kWp+ systems, how to register, and how to combi...
3p–15p per kWh exported (2026 fixed tariffs)
Regional growth hub grants for business solar
Regional growth hub solar grants 2026 — Greater Manchester, West Midlands, West of England, York and beyond. £1k-£25k match-funded grants fo...
£1,000 – £25,000 typical (match-funded, usually 40-60%)
FAQs
Frequently asked questions
What is Farming Investment Fund for on-farm solar PV?
The Farming Investment Fund is DEFRA's replacement for the EU Common Agricultural Policy's Rural Development Programme. Launched in 2022, it provides match-funded capital grants for English farmers and horticultural businesses to invest in productivity-improving equipment — including solar PV when integrated with on-farm energy needs (refrigeration, slurry handling, milking, grain drying, controlled-environment horticulture).
Is the scheme open for applications in 2026?
As of May 2026, the scheme's funding status is: Rolling rounds (windows announced ~3 months in advance). We re-check application windows monthly — if this is critical to your planning, request an eligibility check for the current programme status.
How much can a UK business get?
Typical award range: £25,000 – £500,000 typical FETF/FIF awards. The size of any individual award depends on project capex, sector eligibility, match funding available and the scheme's per-applicant cap.
Who administers the scheme?
Department for Environment, Food and Rural Affairs (DEFRA) / Rural Payments Agency. Applications are submitted through the administrator's process — we link the relevant gov.uk and scheme pages at the bottom of this guide.
What are the biggest pitfalls applicants fall into?
FETF item lists are restrictive. Solar PV qualifies only under specific item codes — typically integrated with refrigeration, slurry handling, grain drying or LED horticultural lighting. Standalone rooftop solar without an agri-productive use case won't qualify for FETF. For larger or bespoke solar projects, the Farming Transformation Fund is the better route — but applications are more complex and the assessment process is longer. Scotland, Wales and Northern Ireland have separate schemes. Welsh farmers use the Sustainable Production Grant; Scottish farmers use the Scottish Rural Development Programme.
Check if your business qualifies
Free 60-second eligibility check tells you whether Farming Investment Fund for on-farm solar PV applies — and which other schemes can stack.
Run free eligibility check Or call 0800 246 1132