Full Expensing for solar in London
Limited companies in London use Full Expensing as the primary tax relief on commercial solar capex. The 100% first-year deduction with no cap is the highest-value single intervention for tax-paying limited companies.
Full Expensing for London businesses
| Headline value | 25p in the £ tax saving (limited companies, no cap) |
| Eligibility | Limited companies with taxable profits |
| Typical benefit | £25,000-£500,000 of corporation tax saving on commercial solar capex |
| Regional context | London — London |
The London funding stack
London commercial solar projects typically combine Full Expensing with:
- Other UK-wide reliefs: AIA (if not using Full Expensing), Smart Export Guarantee, REGO sales above 50kWp
- Regional schemes: Mayor of London Business Climate Challenge, London Energy Efficiency Fund
- Sector-specific grants: See the sectors hub for IETF, PSDS, FETF and charity-sector funding routes
- Finance routes: Asset finance, operating lease, PPA — see finance hub
London commercial context
London businesses typically operate in the London commercial energy market with import rates around £0.22-£0.30 per kWh in 2026 — making the value of Full Expensing compelling regardless of sector. The London location guide covers council net zero plans, industrial estates and regional scheme administrators in detail.
Next steps for London businesses
- Read the full Full Expensing guide for eligibility, application process, worked examples and watch-outs.
- Browse the London location guide for regional scheme specifics.
- Compare cost & payback for your system size at the cost hub.
- Run the eligibility calculator — 60 seconds to confirm exactly which schemes apply to your business.
Free eligibility check · London
Tell us your business — we map every active 2026 grant to your sector, size and postcode.
Full Expensing in London · FAQs
Does Full Expensing apply to London businesses in 2026?
Yes. Full Expensing is a UK-wide scheme administered by HMRC via the corporation tax return. London businesses access Full Expensing on the same eligibility basis as any other UK location. See the full Full Expensing guide.
How does Full Expensing stack with London regional grants?
London businesses can combine Full Expensing with regional schemes specific to the London region — most prominently Mayor of London Business Climate Challenge, London Energy Efficiency Fund. Stacking is subject to subsidy control rules (£315k cumulative ceiling over 3 years) but most projects fall comfortably within the cap.
How much can a London business save?
£25,000-£500,000 of corporation tax saving on commercial solar capex. Combined with London's typical commercial electricity rate (£0.22-£0.30/kWh) and the available regional schemes, total project economics deliver 3-6 year post-tax payback for most London commercial solar projects.
What's the application process from London?
Claimed automatically through your corporation tax return (CT600) at year-end — no separate application.
Where are London commercial solar installations concentrated?
London commercial solar is most active across the city's industrial estates and business parks. See the dedicated London location guide for industrial estate breakdowns and council climate framework details.
Check if your London business qualifies
Free 60-second eligibility check confirms whether Full Expensing applies to your business and how to stack it with London regional schemes.
Free eligibility check Or call 0800 246 1132