The short answer
As of September 2026 we know of no open UK or devolved government grant for business rooftop solar. The biggest support is tax relief: the £1m Annual Investment Allowance deducts 100% of project cost from year-one profits — effectively ~25% back at the 25% corporation tax rate. Solar is also exempt from business rates in England, Scotland and Wales until 31 March 2035.
Last verified: 28 September 2026
Search "solar grants for business" and you get a fog of dated installer blogs, government list pages and regional growth-hub links, half of them out of date. This guide cuts through it. We don't install solar, so we have no reason to oversell what's available — and we'll happily tell you what isn't. For a number on your own roof, the calculator (linked below) does that in about a minute.
Are there any grants for commercial solar panels?
The honest answer first: there is no single, universal grant that pays for commercial solar in the UK. Schemes that promise to "cover your solar" are usually either funded Power Purchase Agreements (where you don't own the panels) or regional rounds that open and close. What genuinely moves the cost is the tax system; grants, when one is open, are a bonus. We'll take each in turn.
Tax relief: the real subsidy
For most businesses the tax treatment is worth far more than any grant they'll qualify for. The headline is the Annual Investment Allowance.
| Step | Figure |
|---|---|
| System cost | £100,000 |
| AIA deduction (100%, year one) | £100,000 |
| Corporation tax rate | 25% |
| Tax saved | ≈ £25,000 |
| Effective net cost | ≈ £75,000 |
The AIA allows up to £1m of qualifying capital spend to be deducted from profits in the year of purchase, so it covers the full cost of most SME-scale systems. For spend above the AIA, a company can claim a 50% first-year allowance on new special-rate assets instead; sole traders and partnerships fall back to the 6% special-rate writing-down allowance.
Myth-bust: solar does not qualify for full expensing
Two more reliefs round out the picture:
- Business rates exemption — eligible onsite renewable plant, including rooftop solar and batteries, is exempt from business rates in England from 1 April 2022, Scotland from 1 April 2023 and Wales from 1 April 2024, all until 31 March 2035. In Northern Ireland only systems of 50kW or less are exempt.
- VAT — commercial installs carry 20% VAT (the 0% domestic rate does not apply), but a VAT-registered business can normally reclaim it.
The AIA, the 50% first-year allowance, the rates exemption and the VAT position are worked through in full — with the claims process — on our commercial solar tax relief guide.
Grant schemes by nation: what's open
These are the schemes you will see named in other guides, with their status when we last checked. None is currently open for business rooftop solar.
| Scheme | Status | Notes |
|---|---|---|
| UK Shared Prosperity Fund | Ended March 2026 | Council-run business grants under it have closed |
| Local Growth Fund (England, from April 2026) | Money to 11 mayoral authorities, not a business grant | Any energy grants are set locally — ask your combined authority or growth hub |
| Improving Farm Productivity (England) | Round 2 closed; no round open | Paid 25% of rooftop or reservoir solar (£15,000–£100,000) |
| Farming Equipment and Technology Fund 2026 | Closed 12 May 2026 | Does not fund solar PV panels |
| Industrial Energy Transformation Fund | Closed; no successor planned | Never funded solar PV |
| Scotland — SME Loan (Business Energy Scotland) | Interest-free, £1,000–£130,000 | Not accepting solar PV applications |
| Wales — Future Proofing Fund | Closed (2024 round) | Was for retail, hospitality and leisure businesses |
| Wales — Ynni Cymru capital grant | Closed | For community and local energy projects |
| Northern Ireland — Invest NI Energy Efficiency Capital Grant | Paused | Covered on-site renewables when open |
| Switch Together (formerly Solar Together) group buying | Council-run rounds | Mainly households; some councils admit small businesses. Not a grant |
Where new rounds appear
Sector schemes
Two sector schemes come up often:
- Manufacturing — the Industrial Energy Transformation Fund is often cited, but its guidance excluded solar PV and it closed to new applicants after the 2025 Spending Review, with no successor planned. There is no current sector grant for rooftop solar on factories.
- Farms and agricultural buildings — round 2 of the Improving Farm Productivity grant (England, now closed) funded 25% of rooftop or reservoir solar, with grants of £15,000–£100,000 and no ground-mount. No round is open as of September 2026; gov.uk's Funding for farmers page lists new rounds. The Farming Equipment and Technology Fund does not fund solar panels. See our guide to solar for farm buildings for the agricultural angle.
Who is eligible for solar grants in the UK?
Eligibility is scheme-specific, but the recurring tests are: you must be a UK business (often an SME by headcount and turnover), the premises must be in the scheme's area or sector, and you generally must own the system to claim grants and tax relief — a PPA funder claims them instead. Tax reliefs like the AIA have the broadest reach: any UK business buying solar as a capital asset, with enough taxable profit to absorb the deduction, can use them. Specific grant thresholds vary by scheme — always confirm the current criteria on the official source before you apply.
How to apply without wasting a month
The order that saves time:
- Start with the tax reliefs — they need no application, just correct treatment in your accounts. Confirm with your accountant that the AIA covers your system.
- Check one official source, not ten blogs — your local growth hub, gov.uk's business finance and support finder, or Find a grant shows what is genuinely open in your area now.
- Get the survey and quote first — most grants need a specification and costing, so the install paperwork doubles as your application evidence.
- Mind the timing — many grants must be approved before you commit to the purchase, so don't sign the install contract until you've checked.
What about "free solar panels"?
"Free solar panels for business" is not a grant — it's a funded Power Purchase Agreement. A funder pays for and owns the panels on your roof, and you buy the power they generate at a fixed rate (typically 10–17p per kWh, against roughly 22–29p from the grid depending on how much you use). There is no upfront cost, but you don't own the asset and you don't get the tax relief — the funder does. It can suit a business without capital, but it is a financing route, not free money. Our guide to free solar panels for business explains who qualifies for funded solar and the contract clauses to check, and the financing guide compares it against buying outright.
Frequently asked questions
Can I get a grant to cover the whole solar system?+
No. There is no universal UK grant that funds a commercial solar install, and as of September 2026 none of the regional or sector grants we track is open for business solar PV. The largest support is tax relief: the Annual Investment Allowance deducts 100% of the cost from year-one profits, worth about 25% back at the 25% corporation tax rate.
Is the Annual Investment Allowance really worth 25%?+
For a company paying the 25% main rate, yes. The AIA lets you deduct 100% of the project cost from taxable profits in year one. At the 25% corporation tax rate, a £100,000 system cuts your tax bill by around £25,000 — so roughly a quarter of the cost comes back. It is the single biggest piece of support for commercial solar in the UK.
Do grants stack with a Power Purchase Agreement?+
No. Under a PPA a funder owns the panels and claims the tax relief and any grant, because they made the capital investment, not you. You buy the power instead. If you want the AIA for yourself, you need to own the system — by buying it outright or with asset finance. If a grant ever does part-fund your system, the AIA applies only to the cost after the grant. Our financing guide explains the trade-off.
Are there solar grants in Scotland, Wales and Northern Ireland?+
Not as of September 2026. Scotland's interest-free SME Loan (£1,000–£130,000) is not accepting solar PV applications. Wales has no open Welsh Government grant for business solar: the Future Proofing Fund was a 2024 round for retail, hospitality and leisure businesses, and the Ynni Cymru capital grant is closed. Invest NI's Energy Efficiency Capital Grant, which covered on-site renewables, is paused. The AIA applies UK-wide. The business rates exemption applies in England, Scotland and Wales until 31 March 2035; in Northern Ireland only systems of 50kW or less are exempt.
Are there grants for solar farms in the UK?+
Not for ground-mounted solar farms — no UK grant funds those, and the farming schemes explicitly exclude ground-mount. For solar on farm buildings, round 2 of the Improving Farm Productivity grant (England) paid 25% of rooftop or reservoir solar (grants of £15,000 to £100,000); that round is closed and none is open as of September 2026. The Farming Equipment and Technology Fund does not fund solar panels. A commercial solar farm is financed as an energy investment, not grant-funded.
Can small businesses get solar grants?+
There is no separate small-business solar grant, and as of September 2026 none of the regional schemes we track is open for business solar. When regional rounds do open they are usually aimed at SMEs. The dependable support for a small business is the Annual Investment Allowance, which returns roughly a fifth to a quarter of the cost through year-one tax relief if you own the system (19% for a company with profits under £50,000, 25% at the main rate, and your income tax rate if you are a sole trader).
Is there 0% VAT on solar for businesses?+
No. The 0% VAT rate applies only to residential accommodation and to buildings used solely for a relevant charitable purpose, until 31 March 2027. Commercial installs carry VAT at the standard 20% rate. The offset is that a VAT-registered business can normally reclaim that VAT, so the real net cost is the price before VAT — which is how the figures across this site are quoted.
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Updated September 2026 · By Taro Schenker, founder of Business Solar Check. We're independent — we don't install solar. Figures are indicative UK averages; your site survey confirms the numbers for your roof.