IETF 2026 guide — match-funded grants of 30-50% for energy-intensive industry in England, Wales, NI. Eligible sectors, application windows, solar PV examples.
The Industrial Energy Transformation Fund (IETF) is the UK government's flagship grant scheme for decarbonising energy-intensive industry. Administered by the Department for Energy Security & Net Zero, it provides match-funded capital grants of typically 30-50% of project capex to industrial sites in eligible sectors — manufacturers, food and drink processors, paper mills, chemical plants, steel and metals, ceramics, glass, cement, automotive assembly.
Solar PV is an eligible technology under the IETF's energy efficiency strand, particularly when paired with battery storage, behind-the-meter consumption optimisation, or process electrification. The grant is not a standalone solar grant — applicants must demonstrate the project delivers measurable energy savings or carbon reduction against a clearly defined industrial process baseline. But for sites with the right sectoral fit and a credible decarbonisation narrative, the IETF can subsidise 30-50% of a multi-million-pound rooftop solar project.
| Maximum grant | Up to £14 million per project (large enterprises) |
| Typical grant size | £100,000 – £3 million |
| Match funding requirement | 50-70% from applicant |
| Total fund size (lifetime) | £500 million (2021-2028) |
| Eligible nations | England, Wales, Northern Ireland |
| Scotland equivalent | Industrial Energy Transformation Fund Scotland (separate) |
Phase 3 closed in 2024. Phase 4 is expected to open in Q2 2026 with around £100m available. Sign up to DESNZ email alerts and check the IETF page on gov.uk monthly.
This is a 2-3 page document outlining the project, expected energy savings, indicative budget, and your match funding. EoIs are typically due 8-12 weeks before the full application deadline.
IETF applications require a robust baseline energy consumption figure (typically ISO 50001-compatible) and a forecast saving. Most applicants hire an external energy consultant — budget £15k-£40k for this work.
Includes detailed engineering design, supplier quotes, financial modelling, project plan, environmental impact assessment, and procurement plan. Typical preparation effort: 12-16 weeks.
DESNZ assigns an independent technical assessor. This phase can take 3-4 months and may include site visits.
Successful applicants sign a Grant Funding Agreement with detailed milestones. Grant is paid in arrears against verified expenditure and energy savings.
Five years of energy data reporting to DESNZ to verify the realised savings.
Most successful 2026 commercial solar projects use a combination of schemes — this is where independent advice earns its keep. Industrial Energy Transformation Fund for solar PV typically combines well with:
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The Industrial Energy Transformation Fund (IETF) is the UK government's flagship grant scheme for decarbonising energy-intensive industry. Administered by the Department for Energy Security & Net Zero, it provides match-funded capital grants of typically 30-50% of project capex to industrial sites in eligible sectors — manufacturers, food and drink processors, paper mills, chemical plants, steel and metals, ceramics, glass, cement, automotive assembly.
As of May 2026, the scheme's funding status is: Phase 3 closed 2024; Phase 4 expected Q2 2026 (re-verify monthly). 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: 30-50% of project capex (typically £100k-£14m awards). The size of any individual award depends on project capex, sector eligibility, match funding available and the scheme's per-applicant cap.
Department for Energy Security & Net Zero (DESNZ). Applications are submitted through the administrator's process — we link the relevant gov.uk and scheme pages at the bottom of this guide.
IETF is competitive. In Phase 3, around one in three EoIs progressed to full application; about half of full applications were funded. Strong projects with high carbon intensity and clear energy savings win. The application is heavy. Typical professional services costs (energy auditor + grant writer + technical consultant) £40k-£80k. Don't apply for projects under £400k — the application cost-to-benefit doesn't work. Solar must form part of a wider decarbonisation case. A standalone rooftop PV system rarely wins — IETF likes projects that combine PV with heat pumps, process electrification, waste heat recovery, or compressed air efficiency.
Tell us your business — we map every active 2026 grant to your sector, size and postcode, and tell you which ones stack.
Free 60-second eligibility check tells you whether Industrial Energy Transformation Fund for solar PV applies — and which other schemes can stack.
Run free eligibility check Or call 0800 246 1132