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Capital grant (agriculture) · Updated 12 May 2026
Farming Investment Fund for on-farm solar PV: the Improving Farm Productivity grant
How English farms fund solar PV through the Farming Investment Fund in 2026: the Improving Farm Productivity grant at 25% of eligible capital. FETF closed 28 April 2026.
Overview
The Farming Investment Fund is DEFRA's post-CAP capital-grant programme for English farmers and horticultural businesses. It has two strands, and for solar PV only one of them matters.
The Improving Farm Productivity (IFP) grant, under the Farming Transformation Fund, is the route for on-farm solar: it pays 25% of eligible capital for rooftop solar installed alongside productivity equipment — refrigeration, slurry handling, milking, grain drying, controlled-environment horticulture — with the farm funding the balance. It runs in competitive rounds through the Rural Payments Agency.
The Farming Equipment and Technology Fund (FETF) was a small, fixed-rate, per-item equipment fund. It never funded rooftop solar, it was never a 40% capital grant, and its final round closed on 28 April 2026. The "FETF 40% solar grant" that still circulates on farm-solar sites did not exist. If a quote or a grant list points a solar project at FETF, it is out of date.
Stack IFP with the Annual Investment Allowance on the 75% the farm funds, and with Smart Export Guarantee income on exported surplus. Farms in Wales, Scotland and Northern Ireland use their own schemes — see the devolved-nations guides.
Key facts at a glance
| Programme structure | Farming Investment Fund (FIF) — the Farming Transformation Fund, which carries the Improving Farm Productivity (IFP) grant, and the Farming Equipment and Technology Fund (FETF) |
| The solar route | IFP — 25% of eligible capital for rooftop solar alongside productivity equipment |
| FETF | A fixed-rate, per-item equipment fund. Final round closed 28 April 2026. It never funded rooftop solar |
| Match funding | The farm funds the other 75% — typically via AIA at partnership or company rates, plus SEG income |
| Application route | Rural Payments Agency online portal, in the current IFP round |
| Eligible nations | England only — Wales (Farm Business Grant, 40%), Scotland (CARES) and NI (DAERA, up to 40%) run their own schemes |
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 — Confirm the IFP round. Check the Rural Payments Agency portal for the current Improving Farm Productivity round, its opening and closing dates and its eligible-item guidance. Do not plan around FETF — its final round closed on 28 April 2026 and it never covered rooftop solar.
Step 2 — Tie the solar to a productivity use. IFP funds solar that powers on-farm productive equipment. Document the load the array will serve — refrigeration, grain drying, milking, horticultural lighting — with half-hourly data where you have it.
Step 3 — Get itemised quotes from an MCS-certified installer. The application needs eligible capital broken out by item so the 25% can be assessed line by line.
Step 4 — Submit in the round. IFP rounds are competitive and time-limited; submit through the RPA portal before the close date with the productivity case attached.
Step 5 — Fund the balance. The 75% you fund attracts the Annual Investment Allowance at your business's rate, and exported surplus earns Smart Export Guarantee income. Take your own advice on the tax position.
Watch-outs and pitfalls
- FETF is closed (final round 28 April 2026) and never funded rooftop solar. Any list, quote or adviser routing a solar project to FETF is working from stale guidance.
- IFP is competitive and round-based: a strong productivity case (what the array powers) decides the score, not the panel count.
- IFP pays 25% of ELIGIBLE capital — items outside the eligible list, and any non-productive use, fall out of the calculation.
- Scotland, Wales and Northern Ireland farms are not eligible — use CARES, the Farm Business Grant (40%) or DAERA (up to 40%) respectively.
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: the Improving Farm Productivity grant 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 Improving Farm Productivity grant?
The Farming Investment Fund is DEFRA's post-CAP capital-grant programme for English farmers and horticultural businesses. It has two strands, and for solar PV only one of them matters.
Is the scheme open for applications in 2026?
As of May 2026, the scheme's funding status is: IFP runs competitive rounds — check the current one on the RPA portal. The FETF strand closed 28 April 2026. 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% of eligible capital under the Improving Farm Productivity (IFP) grant. 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 is closed (final round 28 April 2026) and never funded rooftop solar. Any list, quote or adviser routing a solar project to FETF is working from stale guidance. IFP is competitive and round-based: a strong productivity case (what the array powers) decides the score, not the panel count. IFP pays 25% of ELIGIBLE capital — items outside the eligible list, and any non-productive use, fall out of the calculation.
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