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 · Updated 12 May 2026
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 for SME solar PV.
Overview
Regional growth hub grants are the most under-used category of UK business solar funding. Funded through a mix of UK Shared Prosperity Fund (UKSPF), legacy European Regional Development Fund (ERDF) money, and Mayoral Combined Authority budgets, they offer small match-funded capital grants — typically £1,000 to £25,000 per business — for energy efficiency and decarbonisation projects including solar PV.
The challenge is that they are administered by ~38 different Local Enterprise Partnerships and combined authorities across England, with separate equivalents in Wales (Business Wales), Scotland (Business Gateway / regional enterprise networks) and Northern Ireland (Invest NI). Each has different eligibility criteria, application processes and funding rounds. There is no single national lookup table. We track the active schemes on this site month-by-month, organised by region.
Key facts at a glance
| Typical grant size | £1,000 – £25,000 |
| Match funding required | Typically 40-60% from applicant |
| Application route | Through your regional growth hub |
| Common scheme types | Decarbonisation vouchers, ERDF legacy funds, Mayoral combined authority grants |
| Geographic coverage | Patchy — strong in Greater Manchester, West Midlands, West of England, York & North Yorkshire; weaker in much of Eastern England |
| Eligibility | SMEs only — under 250 employees, <£43m turnover |
Eligibility criteria
- Most schemes require you to be classified as an SME — fewer than 250 employees and annual turnover under €50m (~£43m) or balance sheet under €43m.
- Geographic restrictions apply — you typically need to be trading from premises in the regional administrative area.
- Many schemes require the property to be commercial (not residential let).
- Match funding is usually required — typically you must fund 40-60% of the project yourself.
- State aid / subsidy control rules apply — the grant counts towards your cumulative subsidy ceiling.
- Some schemes require an energy audit or pre-application diagnostic visit.
How to apply
Step 1 — Find your local growth hub.
Use the gov.uk 'Find a growth hub' tool. England's 38 LEPs and combined authorities each have a single regional growth hub.
Step 2 — Register for the hub's newsletter or alerts.
Growth hub grant schemes open and close with little notice. Email alerts are typically the only way to know about a new funding round.
Step 3 — Complete the initial enquiry / eligibility check.
Most schemes start with a 1-page expression of interest. If you pass screening, you'll be invited to apply.
Step 4 — Engage with the hub's business advisor.
Most schemes assign you a named contact who helps shape the application. Use them — they know the assessment criteria.
Step 5 — Submit the full application.
Includes a project description, supplier quote, business case (typically a 1-2 page narrative), state aid declaration, and confirmation of match funding.
Step 6 — Receive the grant.
Most regional schemes pay 50% on contractor mobilisation and 50% on commissioning evidence (invoice, photos, commissioning certificate).
Regional growth hub schemes in 2026
- Greater Manchester — Green Investment Fund — Up to £25,000 match-funded grants for GM-based SMEs. Strong renewable energy focus. Rolling intake.
- West Midlands — Business Energy Advice Service (BEAS) — Free energy audit + grants up to £100,000 for decarbonisation projects. Particularly strong on manufacturing.
- West of England — Green Business Grant — £1,500-£10,000 grants for Bristol, Bath, North Somerset and South Gloucestershire SMEs.
- York & North Yorkshire — Business Sustainability Programme — Free advice + grants up to £14,000 for North Yorkshire SMEs.
- Liverpool City Region — Eco Innovatory — Decarbonisation grants 50% match-funded up to £50,000.
- Tees Valley — Resource Efficiency Fund — Tees Valley SMEs eligible for grants up to £25,000.
- Cornwall & Isles of Scilly — Green Innovation Grant — Replacement ERDF programme; check Cornwall Council for current funding.
- Cambridgeshire & Peterborough — Eastern New Energy — Capital grants for renewable energy projects up to £100k.
- South East Midlands — Net Zero Energy programme — SEMLEP/UK SPF replacement — check for current intake.
- Leicester & Leicestershire — Low Carbon Business Investment Programme — Match-funded grants for renewable energy and energy efficiency.
Watch-outs and pitfalls
- Geographic mismatches matter. A business HQ'd in Manchester with a warehouse in Cheshire won't qualify for the Greater Manchester scheme on the warehouse project.
- State aid ceilings can bind. Most regional grants are de minimis subsidy (cumulative ceiling €200k / £160k over 3 years). If you've recently received Coronavirus Business Interruption Loan, Recovery Loan, or other government support, you may have exhausted your ceiling.
- Grants are not retrospective. You cannot claim against equipment you have already ordered or installed. Apply before signing the installation contract.
- Match funding must be genuine and from non-government sources. Existing public grants cannot be used as match funding for a new grant.
- Some growth hub schemes are open only to micro and small businesses (under 50 employees / £10m turnover). Medium-sized SMEs may need to use IETF instead.
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. Regional growth hub grants for business solar 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)
- Full Expensing for business solar PV — 100% first-year deduction — no upper limit
Sources & further reading
Related schemes
Tax relief Soft loan / regional grant Interest-free loan
Other relevant grants & reliefs
Business Wales SME loans for solar PV
Business Wales solar loans 2026 — interest-free or low-interest loans up to £250k for Welsh SMEs. Eligibility, application process, examples...
£10,000 – £250,000 interest-free or low-interest
Scotland SME Loan Scheme — interest-free finance for business solar
Scotland SME Loan Scheme 2026 — 0% loans up to £100k for Scottish SMEs installing solar PV. Cashback bonus for early adopters. Eligibility a...
Up to £100,000 at 0% (longer-term loans available)
FAQs
Frequently asked questions
What is Regional growth hub grants for business solar?
Regional growth hub grants are the most under-used category of UK business solar funding. Funded through a mix of UK Shared Prosperity Fund (UKSPF), legacy European Regional Development Fund (ERDF) money, and Mayoral Combined Authority budgets, they offer small match-funded capital grants — typically £1,000 to £25,000 per business — for energy efficiency and decarbonisation projects including solar PV.
Is the scheme open for applications in 2026?
As of May 2026, the scheme's funding status is: Varies by region — most schemes run rolling intake. 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: £1,000 – £25,000 typical (match-funded, usually 40-60%). 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?
Regional Local Enterprise Partnerships and Mayoral Combined Authorities. 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?
Geographic mismatches matter. A business HQ'd in Manchester with a warehouse in Cheshire won't qualify for the Greater Manchester scheme on the warehouse project. State aid ceilings can bind. Most regional grants are de minimis subsidy (cumulative ceiling €200k / £160k over 3 years). If you've recently received Coronavirus Business Interruption Loan, Recovery Loan, or other government support, you may have exhausted your ceiling. Grants are not retrospective. You cannot claim against equipment you have already ordered or installed. Apply before signing the installation contract.
Check if your business qualifies
Free 60-second eligibility check tells you whether Regional growth hub grants for business solar applies — and which other schemes can stack.
Run free eligibility check Or call 0800 246 1132