At a glance: what support exists in 2026
There is no UK-wide scheme that hands businesses free solar panels. Support is a mix of tax relief, export payments, occasional regional grants and finance. Together they often do more than a grant would.
| Support | Who | What you get | Status (October 2026) |
|---|---|---|---|
| Annual Investment Allowance | Most businesses | 100% of the cost off taxable profits in year one, up to £1m a year | Available |
| Full expensing | Companies | A 50% first-year allowance on solar | Available, permanent |
| Smart Export Guarantee | Systems up to 5 MW | Payment for every kWh exported | Available |
| Regional and local grants | Depends on the scheme | Part-funding, usually for SMEs | Open and close through the year |
| Farm grants (England) | Farm businesses | Improving Farm Productivity covered solar PV | Closed, no new round announced |
| Finance and PPAs | Any business | Spread the cost, or pay nothing upfront | Through lenders and installers |
Is there a national grant for business solar?
No. There is no single, permanent government grant for business solar panels that every company can claim. National support works through tax (capital allowances) and the Smart Export Guarantee, both of which apply everywhere. Cash grants come from councils, combined authorities, devolved governments and rural programmes; they are targeted, competitive and open and close as budgets allow.
Tax relief: the AIA and full expensing
For most businesses, tax relief cuts the real cost of solar more reliably than any grant. Solar panels count as special rate plant and machinery, which decides the relief:
| Allowance | Who can claim | Relief on solar |
|---|---|---|
| Annual Investment Allowance | Sole traders, partnerships of individuals and companies (one allowance per group) | 100% in the year you buy, up to £1 million a year |
| Full expensing | Companies only | 50% first-year allowance. The 100% rate is for main rate assets, which solar isn't. |
| Writing down allowances | Anyone, on spend the above don't cover | Relief spread over many years |
- Claimed in full under the AIA
- £80,000
- Tax saved at the 25% main rate
- £20,000
- Tax saved at the 19% small profits rate
- £15,200
- Net cost after relief, before energy savings
- £60,000–£64,800
The corporation tax rate you pay depends on your profits. Sole traders and partners get relief against income tax instead. Confirm your position with your accountant.
Regional and local grants
Most real business solar grants are local and time-limited: SME decarbonisation funds, city-region low-carbon schemes and rural business programmes that include solar alongside LED lighting or heat pumps. Where to look:
| Where | Start here |
|---|---|
| Anywhere in the UK | Find a grant: filter by location, business size and energy or decarbonisation |
| England | Your council, mayoral combined authority and local Growth Hub |
| Scotland | Business Energy Scotland for advice and funding |
| Wales | Business Wales and the Development Bank of Wales |
| Northern Ireland | NI Business Info and your council |
Funding without a grant
| Loan or green loan | Asset finance or hire purchase | Power Purchase Agreement | |
|---|---|---|---|
| Upfront cost | None or a deposit | None or a deposit | None |
| Who owns it | You, from day one | You, usually at the end of the term | The funder |
| Capital allowances and SEG | You | Usually you, depending on the structure | The funder |
| Trade-off | Interest, security and covenants | Interest and fees | Lower lifetime saving; a 10–25 year contract |
With a PPA, check break clauses, what happens if the roof needs work and whether the contract passes to a buyer if you sell. PowerPilot doesn't provide finance, but the installers we introduce can outline the finance partners they work with.
Smart Export Guarantee: income from surplus power
Under the Smart Export Guarantee, licensed electricity suppliers pay for the power you export from solar systems up to 5 MW. Suppliers with 150,000 or more customers must offer a tariff; smaller ones can choose to.
A certified installation
MCS certification, or equivalent evidence of eligibility; ask your installer which applies to your system.
An export meter
A smart or export meter that records what you send to the grid, half-hourly.
Apply to a SEG supplier
It can be a different supplier from the one you buy power from.
SEG is income, not a grant, and it stacks with capital allowances. Rates vary by supplier and sit well below import prices, so using your power on site is still worth more. Ask each installer to estimate your export and SEG income.
Getting quotes
Once you know your support options, get firm prices: two or three detailed quotes are usually enough. Ask each installer for:
- System size (kWp), panels and inverters
- Expected generation (kWh), and on-site use versus export
- An itemised price, including design, installation and DNO fees
- The assumptions behind savings: energy prices, panel ageing and SEG income
- Maintenance, monitoring and warranties included
PowerPilot is a free matching service, not an installer. Answer a few questions and we introduce up to three installers who cover your area. Every one has had its MCS certification checked against the MCS register, its insurance confirmed and its Companies House record checked. There's no obligation to go ahead. See how to compare commercial solar installers.
Frequently asked questions
Is there a national grant for business solar panels in the UK?
No. There is no single, permanent UK-wide grant that all businesses can use for solar panels. Support is a mix of tax relief, the Smart Export Guarantee and regional or local schemes that open and close over time. Treat any grant as a bonus and check current offers on the government's Find a grant service and with your local authority.
Can my business claim tax relief on solar panels?
Usually, yes. Solar panels are special rate plant and machinery. The Annual Investment Allowance gives 100% relief in year one on up to £1 million of spending a year, for sole traders, partnerships and companies. Companies can also use full expensing, which gives solar a 50% first-year allowance. The right route depends on your structure and profits, so confirm with your accountant.
How do I find local solar grants for my business?
Search the government's Find a grant service, filtering for energy or decarbonisation. Then check your local council, any mayoral combined authority and, in England, your Growth Hub. In Scotland, Wales and Northern Ireland, use Business Energy Scotland, Business Wales and NI Business Info.
Can I combine a solar grant with tax relief and Smart Export Guarantee?
Sometimes, but it depends on the grant's rules and your tax position: some grants reduce the spending that qualifies for capital allowances. The Smart Export Guarantee is separate: if your system and meter meet Ofgem's criteria, you can usually earn export payments however it was funded. Check with the grant provider and your accountant.
What funding options are available if my business cannot get a grant?
Common options are asset finance or hire purchase, standard or green business loans, and power purchase agreements where a third party funds and owns the system. Each differs on ownership, balance sheet impact, long‑term cost and who receives SEG income. Discuss structures with prospective installers and take independent financial advice before choosing.
How does PowerPilot help my business get started with solar?
PowerPilot is a matching service, not an installer. You answer a short questionnaire, and PowerPilot introduces you to up to three vetted commercial solar installers that fit your project. They then survey, design and quote, including funding options and likely SEG income. You can compare proposals side by side and are under no obligation to proceed with any of them.
Sources
The 13 sources behind this page
- GOV.UK: Annual Investment Allowance
- GOV.UK: Permanent full expensing
- GOV.UK: Capital allowances on plant and machinery
- GOV.UK: Corporation tax rates
- GOV.UK: Find a grant
- GOV.UK: Funding for farmers
- GOV.UK: Improving Farm Productivity grant round 2 (closed)
- GOV.UK: Local business support
- Ofgem: Smart Export Guarantee
- Business Energy Scotland
- Business Wales
- Development Bank of Wales
- NI Business Info