Do Small Businesses Get Solar Grants? What Exists in 2026

UK businesses installing commercial solar in 2026 can access over 20 grant + funding schemes — but there’s no single "national commercial solar grant" and the landscape is genuinely fragmented across UK government, devolved governments, regional combined authorities, sector-specific funds, and ongoing tax relief regimes. This page covers the complete 2026 funding landscape with eligibility, typical award amounts, application timelines, and how to stack multiple grants for maximum capex reduction. For sector-specific grant detail see grants and funding; for IETF specifically see IETF (closed July 2025); for Salix specifically see Salix PSDS.

The complete 2026 UK commercial solar grants table

Below is the full 2026 UK commercial solar grant landscape. Each row shows the scheme name, eligibility, typical award amount, application timing, and source.

100% Annual Investment Allowance — the universal grant-equivalent

The Annual Investment Allowance (AIA) is HMRC’s 100% first-year capital allowance for plant and machinery investment. Commercial solar PV qualifies under the standard plant and machinery rules. The mechanics: a profitable UK limited company expenses 100% of qualifying capex against year-one taxable profits, up to the £1,000,000 annual cap. At the 25% main rate of corporation tax in 2026, every £100 of AIA-eligible spend generates £25 of year-one tax relief — equivalent to a 25% capex grant. Worked example: a £100,000 100 kW solar system. AIA claim £100,000 → corporation tax saving £25,000 → net effective capex £75,000. Sole traders and partnerships on cash basis can also claim AIA at their marginal income tax rate (40% AIA equivalent for higher-rate taxpayers — even better than corporation tax). Charities and not-for-profits without corporation tax position can’t use AIA — alternative grant routes (PPA, Salix PSDS) work better for these organisations. See AIA service page.

Salix PSDS Phase 4 — closed to new applications since November 2024

The Salix Finance Public Sector Decarbonisation Scheme (PSDS) was the largest direct grant route for public-sector decarbonisation, and it is the scheme most often cited to us in enquiries. It closed to new applications in November 2024. Phase 4 was its final phase — the gov.uk collection lists Phases 1 to 4 and no successor — and no new window had opened as of September 2026, so a public body planning solar in 2026 cannot bid for it. Two further points are worth knowing, because they are widely misreported: PSDS was heat-led, meaning solar was fundable only alongside the replacement of fossil-fuel heating in the same building, so "100% grant for a rooftop array" was never quite right even while a window was open; and the interest-free Salix loan route is devolved, with a zero-interest scheme in Scotland and a low fixed rate in Wales, but no England equivalent. English public bodies are funding solar from capital budgets, a power purchase agreement or lease finance, with the Condition Improvement Fund available to eligible schools and the Great British Energy schools and NHS rollouts allocated by selection rather than application. See Salix PSDS detailed guide and check gov.uk or Find a Grant before assuming a window has reopened.

IETF (closed July 2025) — the former manufacturing decarbonisation grant

The Industrial Energy Transformation Fund closed in July 2025 and no successor fund is planned, so it cannot be counted on; check GOV.UK for any scheme open now.

Smart Export Guarantee (SEG) — universal ongoing income

The Smart Export Guarantee (SEG) is Ofgem-regulated. Active SEG providers in 2026 must offer at least one tariff to commercial customers with MCS-certified solar systems. SEG rates vary materially by provider: Octopus Outgoing Fixed pays 12p/kWh as at July 2026 (among the highest standalone rates); British Gas Export & Earn Flex pays 6-12p/kWh on variable tracker; EDF Renewable Heat Income pays 5-10p/kWh; Bulb Smart Export pays 5-8p/kWh; smaller suppliers typically 4-6p/kWh. To qualify: MCS-certified installation, separate generation meter, registration with chosen SEG supplier (doesn’t need to be your import supplier). Typical annual SEG income: £500-£15,000 for sub-100 kW SME systems; £5,000-£50,000+ for industrial scale.

Regional Mayoral Combined Authority grants

Four major Mayoral Combined Authorities operate decarbonisation grant schemes accessible to commercial solar projects. Greater Manchester Combined Authority (GMCA) Net Zero Accelerator — 30-50% capex grants for Greater Manchester SME and mid-market businesses. West Midlands Combined Authority (WMCA) Decarbonisation Grant — 25-40% capex grants for West Midlands businesses. West Yorkshire Combined Authority (WYCA) Net Zero Fund — 20-40% capex grants for West Yorkshire businesses. Liverpool City Region Combined Authority (LCRCA) Green Growth Fund — 20-40% capex grants for Liverpool City Region businesses. Application timing varies — typically periodic rounds 2-4 times per year. Awards capped at £100k-£200k per project typically. Combined with AIA the effective capex reduction reaches 45-65% for eligible regional businesses.

Welsh + Scottish + Northern Ireland devolved grants

Welsh Government Net Zero Grants: ongoing programmes via Business Wales offering 20-50% capex grants for Welsh businesses depending on sector. Particularly accessible for tourism, hospitality, and food-and-drink sectors. Local Energy Scotland CARES (Community And Renewable Energy Scheme): grant + loan combinations for Scottish community and SME businesses. Scottish Enterprise + Highlands and Islands Enterprise: region-specific funding for Scottish businesses. Northern Ireland: InvestNI capital grants programme covers commercial solar for qualifying NI businesses; less well-funded than mainland equivalents but still material at 15-30% capex contribution levels.

DEFRA farm-specific grants

England's live capital route for farm solar is the Improving Farm Productivity (IFP) grant under the Farming Investment Fund — 25% of capex on combined solar + battery + electrification projects, applied for via the DEFRA portal in periodic rounds. The Farming Equipment + Technology Fund (FETF) is now closed — its final round ended on 28 April 2026, and it was always a fixed-rate equipment fund (items roughly £1k-£25k), never a percentage capital grant. Across the UK the honest framing is grants of 25-40% depending on nation and scheme — and for most profitable farm businesses the universal lever is 100% AIA tax relief, which delivers 2-4 year paybacks without any grant at all. For Welsh farms add Sustainable Production Grant; for Scottish farms add Sustainable Agriculture Capital Grant Scheme; for Northern Ireland add Farm Business Improvement Scheme. For farm grant information, see the separate solar panels for farms guide.

How to stack multiple grants for maximum capex reduction

The best UK commercial solar economics come from stacking 2-3 grants on the same project. Stack 1: Public sector — with Salix PSDS closed to new applications since November 2024, the public-sector stack is a capital budget or PPA plus SEG export income and any regional council climate-fund top-up. Typical for council leisure centres, NHS hospital outbuildings and university campuses. Stack 2: Manufacturer combined-measure — the Industrial Energy Transformation Fund (closed July 2025, no successor planned) can no longer be part of this stack, leaving 100% AIA on capex (25% effective) + SEG export. Typical for food production, chemicals, ceramics. Stack 3: Regional SME standard — Mayoral Combined Authority grant (25-40% capex) + 100% AIA on residual + SEG export = 45-65% combined capex reduction. Typical for Manchester / Birmingham / Leeds SMEs. Stack 4: Farm grand slam — DEFRA IFP (25% capex) + 100% AIA on residual + SEG export + Smart Export agriculture premium = 45-60% combined capex reduction. Typical for dairy and intensive poultry farms.

2026 grant application calendar

Application timing across the major schemes in 2026. Salix PSDS Phase 4: closed — no application round since November 2024. IETF (closed July 2025): closed with no successor fund planned — check GOV.UK for any scheme open now. GMCA / WMCA / WYCA / LCRCA grants: periodic rounds, typically 2-4 per year — check respective Combined Authority for current windows. UKSPF: regional allocation cycles vary by local authority. DEFRA IFP (Farming Investment Fund): periodic rounds — check the DEFRA portal for current windows (FETF is closed; final round ended 28 April 2026). AIA tax relief: claimed via annual corporation tax return — no separate application required. SEG export tariffs: applied for once at install commissioning, ongoing income thereafter. Grant windows move, and schemes close without much notice — check gov.uk and the Find a Grant service before building a bid timetable.

Recommended next step: free grant eligibility screen

Rather than trying to navigate the 20+ scheme landscape alone, ask an installer or grant adviser for a grant eligibility screen as part of the desk feasibility. A grant screen should assess your specific situation (sector, region, project size, corporation tax position) against the full UK 2026 grant landscape and identify which schemes you qualify for, expected award amounts, application timing, and recommended stack. For grants over £50k, ask advisers whether they offer success-fee grant application management (no upfront cost, fee only paid if grant awarded). We reply by email.