Business Solar Grants UK: What Funding Is Available in 2026

Most solar grant conversations centre on residential homes, but UK businesses in 2026 have a surprisingly broad range of funding routes available — from locally administered grants backed by central government money through to tax relief mechanisms that can offset a large portion of the upfront cost. The catch is that provision is fragmented: England, Scotland, and Wales each have separate schemes, and even within England the available grants vary by local authority area. This guide maps the main routes, explains who qualifies for each, and points you towards the official sources you need to check before relying on any figure here. Amounts and deadlines change frequently; treat this as a starting framework, not a live application guide.

UK Shared Prosperity Fund (UKSPF) local grants

The most widely available route for SMEs in England is through the UK Shared Prosperity Fund, the successor to EU structural funds, which local authorities and combined authorities have been deploying through business energy grants since 2022. The specific grant product, size, and eligibility conditions vary significantly by area, but the common pattern is a competitive or first-come-first-served grant of between £1,000 and £10,000 towards solar panels, battery storage, LED lighting, or other energy efficiency measures.

Examples active in 2026 include Three Rivers District Council offering up to £3,000 for eligible SMEs for solar and battery installations, and North Northamptonshire offering up to £5,000 for businesses trading for more than 12 months. North Herts Council has run a Solar for Business programme delivering free on-site solar funded through UKSPF. Glasgow City Council operates a Green Business Grant open until 30 September 2026 or until budget is exhausted.

UKSPF business grant funding in England was originally programmed to March 2026, but many councils carried allocations into 2026–27 or were granted extensions. The fastest way to find what is open near you is the GOV.UK Find a Grant service and your local council's business support pages. The Ofgem business energy efficiency grants page also aggregates signposts to live schemes.

The general eligibility requirements tend to mirror one another: trading for a minimum period (typically 12 months), fewer than 250 employees, a UK-registered business premises, and willingness to procure through an approved installer. Some schemes require evidence of an energy audit first.

Capital allowances: the tax relief most businesses overlook

For businesses that do not qualify for a direct grant, tax relief through capital allowances is the most significant lever available nationwide. HMRC classifies solar panels as special-rate plant and machinery because they are integral features of a building and have an expected life of 25 years or more.

In practice, this means two options. First, you can claim the Annual Investment Allowance (AIA) against the cost of solar in the year of purchase, writing off the full expenditure against taxable profits up to the AIA limit (currently £1 million per year). Second, companies paying corporation tax can claim the 50% First-Year Allowance on special-rate plant and machinery, recovering half the cost in year one and adding the remainder to the special-rate pool for subsequent deductions at 6% per year. Sole traders and partnerships use the same AIA route rather than the FYA.

Full expensing — the 100% write-off introduced in 2023 for main-rate plant — does not apply to solar panels because they sit in the special-rate category. However, between the AIA and the 50% FYA, most businesses can still write off a substantial portion of the cost in the tax year they install. The HMRC capital allowances manual section CA22335 gives the definitive treatment for solar panels, and HMRC's HS252 helpsheet covers how to claim on your return. Always confirm with an accountant who knows your specific position.

A separate relief worth noting: business rates for eligible on-site renewable energy generation equipment — including rooftop solar and battery storage — are exempt until 31 March 2035 under a government extension confirmed in 2023. This means newly installed solar panels at your business premises will not add to your rateable value for the duration of that window.

Salix Finance: interest-free loans for the public sector

If you work in the public sector — a school, NHS trust, local authority, further education college, or central government body — Salix Finance is the dedicated funding route. Salix is a government-owned company that delivers interest-free loan funding for energy efficiency and decarbonisation projects, including solar PV installations.

The Public Sector Energy Efficiency Loans Scheme (SEELS) provides capital at 0% interest with a repayment period typically set to the simple payback period of the measure, capped at five years for most organisations and eight years for schools. Projects funded in recent years include solar installations at NHS trusts, county council buildings, and academies. The Public Sector Decarbonisation Scheme (PSDS), administered by Salix on behalf of DESNZ, provides grant funding (not loans) to public sector bodies for low-carbon heating and energy efficiency upgrades, and has funded projects running into 2026–27.

Applications go through Salix directly, and the key eligibility gate is being a qualifying public sector organisation. More detail and the current application round status is at the Salix Finance GOV.UK page.

Welsh Government Future Proofing Fund

Welsh businesses have access to a dedicated scheme through the Welsh Government's Future Proofing Fund, a £20 million programme designed to help up to 2,500 businesses invest in renewable energy and energy efficiency. Grants of between £5,000 and £10,000 are available for eligible businesses to install solar panels and other measures. The scheme is delivered via Business Wales and the Development Bank of Wales, and eligibility centres on being a Wales-based SME with demonstrable need for the investment.

Separately, the Ynni Cymru capital grant programme, open for 2025–26, supports community-scale and business renewable energy projects in Wales. Applications for Ynni Cymru ran until 31 March 2026 for that cycle; watch for the next round announcement on gov.wales. For businesses outside the grant criteria, the Development Bank of Wales offers a Green Business Loan Scheme for lower-cost finance.

Scotland: SME loans via Energy Saving Trust

Scottish businesses can access the Scottish SME Loan Scheme, funded by the Scottish Government and administered by Energy Saving Trust Scotland. The scheme offers interest-free loans of up to £100,000 for a wide range of energy efficiency and renewable energy measures, including solar PV installations. It is open to Scottish SMEs across most sectors. The Energy Saving Trust Scotland advice service can guide applicants through eligibility and the application process — details are at energysavingtrust.org.uk/scotland.

Industrial Decarbonisation support for larger businesses

For manufacturers and larger industrial organisations, Innovate UK and DESNZ run the Local Industrial Decarbonisation Plans (LIDP) competition, which provides project grant funding of between £75,000 and £800,000 for businesses developing site-level decarbonisation plans. While these are not solar-specific, solar often forms part of an approved plan. Micro and small organisations can receive up to 70% of eligible project costs covered. Details of open competitions appear on the Innovate UK Innovation Funding Service.

How to find what is open right now

The fastest route to current live grants is a combination of three sources. The GOV.UK Find a Grant portal lists centrally administered schemes. The GOV.UK guidance page Find funding to help your business become greener consolidates the main green finance routes. And your local council or LEP business support team is the most reliable source for UKSPF-backed grants, since those are administered locally and not always surfaced by national portals.

For context on the broader grants landscape covering home and business, our solar grants UK overview maps the full picture, and if you are weighing up the overall financial case before committing, our guide to solar panel costs in 2026 explains what a business installation is typically likely to cost before any grant or allowance.

Documents typically required for any business grant application include: proof of trading (company number, accounts), evidence of energy consumption (bills), a quote from a MCS-certified or equivalent installer, confirmation of business premises ownership or landlord consent, and sometimes a pre-installation energy audit. Prepare these before you start an application — most schemes close quickly once funds are allocated.