Solar Panel Grants for Businesses in the UK

GOV.UK's page for businesses, "Find funding to help your business become greener", lists no current scheme for solar panels on business premises. The page was last updated on 26 October 2022, and the only fund it lists as current, the Industrial Energy Transformation Fund Phase 2 autumn 2022 competition, closed on 17 February 2023.

Round 2 of Defra's Improving Farm Productivity grant offered between £15,000 and £100,000 for solar photovoltaic systems. It is closed for applications. Defra's "Funding for farmers, growers and land managers" page (last updated 1 October 2026) shows that grant as closed and lists no open grant for solar panels.

HMRC designates all capital spending on solar panels as special rate expenditure, from 1 April 2012 for corporation tax and 6 April 2012 for income tax. Spending that isn't covered by another allowance goes in the special rate pool, which gets writing down allowances of 6% a year.

The Annual Investment Allowance lets a business deduct the full cost of qualifying plant and machinery from its profits, up to £1 million a year. HMRC's manual confirms it can be claimed on special rate expenditure, and that a business may set its allowance against special rate spending first. It is claimed in the period the item was bought.

Only companies can claim full expensing and the 50% first-year allowance, on plant and machinery bought from 1 April 2023 that is new and unused. HMRC's manual says special rate expenditure may qualify for the 50% first-year allowance but does not qualify for full expensing. A company can't claim both allowances on the same spending.

The Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2022 came into force on 1 April 2022. For days before 1 April 2035, they leave plant and machinery used to generate or store power mainly or exclusively from renewable sources, including photovoltaics, out of the rating valuation. Scotland and Wales set their own rates rules.

The Smart Export Guarantee, a government-backed scheme Ofgem says launched on 1 January 2020, requires some electricity suppliers to pay for low-carbon electricity exported to the grid. It covers solar PV installations up to 5 MW in Great Britain. Suppliers set their own rates, contract lengths and terms, and rates must be above zero, so it pays to shop around. It is a payment for exported power, not a grant towards the cost.

HMRC's zero rate for installing energy-saving materials, solar panels included, applies to residential accommodation and, from 1 February 2024, buildings used solely for a relevant charitable purpose. It runs until 31 March 2027, when those installations go to the reduced rate of 5%. Business premises aren't covered, so a commercial installation is charged at the standard rate.

The Scottish Government's SME Loan Scheme, run through Business Energy Scotland, offers interest-free loans for energy-saving and renewable measures, but its FAQs say it is not accepting new applications for solar PV projects. Business Energy Scotland's reports on a business's energy use are free.

The Development Bank of Wales' Green Business Loan Scheme lists solar PV among the typical projects it funds, with discounted fixed interest rates, upfront capital repayment holidays and a loan term linked to project payback. It is a loan, not a grant. Applicants must be based in Wales and have traded for at least two years with at least one set of filed annual accounts. A separate grant covers up to 50% of a detailed energy audit, to a maximum of £10,000. A Sustainable Agriculture Loan Scheme for Welsh farms is in development for launch later in 2026.

GOV.UK's Find a grant service searches government grants, and its Finance and support for your business finder lists other schemes. Ofgem suggests asking your energy supplier and your local council, which may offer support to businesses in its area.