Pre-application checklist · Updated 12 May 2026

UK solar grant eligibility checklist 2026

Before you apply for any UK commercial solar grant — IETF, PSDS, regional growth hub, devolved nation — confirm these eligibility factors. Most failed applications fail on one of the items below.

1. Business structure & tax position

• Limited company status confirmed. Full Expensing applies only to UK limited companies; partnerships, LLPs and sole traders use AIA instead.
• Profitability confirmed. Tax reliefs only deliver value against taxable profits. Loss-making businesses should prefer operating lease or PPA finance routes.
• SME status verified. Most regional grants require fewer than 250 employees, under £43m turnover. Some growth hub schemes have stricter limits (50 employees / £10m).
• Group structure mapped. AIA cap (£1m) is shared across a corporate group. Parent company plant purchases reduce your AIA headroom.
• VAT registration status. VAT-registered businesses can reclaim VAT on solar capex (typically 20%). Charities may qualify for 5% reduced rate under VAT Notice 708/6.

2. Subsidy ceiling & state aid

• Cumulative UK subsidies in last 3 years calculated. Under UK subsidy control, the de minimis ceiling is £315k (was €200k pre-Brexit) over rolling 3 years per single beneficiary.
• Coronavirus support included. CBILS, BBLS, Recovery Loan, Local Restrictions Support Grants all count towards your subsidy total.
• Group subsidy aggregated. The ceiling applies to the single economic enterprise (often the group). Group structure mapping is essential.
• Larger grants reviewed. IETF and PSDS awards above £315k are notifiable subsidies — different framework, longer process.

3. Match funding evidence

• Match funding source identified. Most regional grants require 40-60% match; IETF requires 50-70%. Identify your source: retained earnings, bank facility, asset finance, parent equity.
• Documentary evidence ready. Bank facility offer letter, parent guarantee, asset finance pre-approval, board minute. Verbal commitment is not enough.
• Non-government source confirmed. Match funding can't typically come from other government grants (no stacking).
• Cashflow modelled. Grants are paid in arrears — you must fund the project upfront and recover the grant over 6-18 months as milestones are verified.

4. Technical eligibility

• MCS certification confirmed for installer. Required for SEG up to 50kWp; preferred by PSDS, IETF and regional grants.
• G99 connection feasibility checked. DNO capacity study commissioned for systems above 16A/phase. Allow 5-11 weeks.
• Roof structural assessment. Cat 2 survey commissioned for older industrial buildings or systems above 250kWp.
• Asbestos cement roof identified. ACS roofs require replacement before solar — adds £15k-£300k to project capex.
• Three-phase supply confirmed. Required for systems above 17kWp. Single-phase rural sites need upgrade (£8k-£30k).
• Listed building / conservation area status checked. Listed Building Consent or conservation area consent may be required (3-12 months).

5. Energy baseline & modelling

• 12 months half-hourly data collected. Required for IETF and PSDS. Available from your electricity supplier on request.
• Annual electricity consumption and spend documented. Required for all grant applications.
• Sub-metering by load type. Strong applications break consumption down by process, lighting, refrigeration, HVAC — supports targeted decarbonisation cases.
• ISO 50001 compatibility. IETF prefers ISO 50001-compatible baselines. External energy auditor £15k-£40k typical.
• Carbon factor verified. Use current published DESNZ grid emission factor — not outdated 2020-vintage assumptions.
• Self-consumption projection conservative. Don't accept installer's optimistic numbers; use 50-75% for typical commercial loads.

6. Project planning & governance

• RIBA Stage 3 design ready (for PSDS-style applications). Strong PSDS applicants invest £30k-£100k pre-application on design.
• Project sponsor named. Internal sponsor with board authority is critical for delivery — particularly for projects with 18-month delivery windows.
• Procurement strategy defined. Public sector requires PCR 2015 / Procurement Act 2023-compliant procurement. 8-12 weeks added to programme.
• Programme realistic. Most PSDS-funded projects must complete within 18 months of grant offer. Build delivery risk realistically.
• Monitoring & verification plan agreed. 5 years of post-project energy data reporting typical for IETF and PSDS.

7. Documentation pack

• Three competitive installer quotes — required for most regional and growth hub grants.
• MCS certificate or engineering sign-off for each system component above 50kWp.
• EPC certificate — current and projected post-solar.
• Financial accounts — last 3 years for credit assessment.
• Board / partner approval — minuted resolution authorising the project.
• Subsidy control declaration — cumulative public subsidies received in last 3 years.
• State aid / subsidy assessment for projects above the de minimis ceiling.