Published
July 17, 2026
Many UK business owners want to know whether there are government grants for solar panels in the UK, as investing in solar power is not only an environmental imperative but also an economic one.
They’re interested to know whether financial support is available to help reduce the cost of switching to solar energy. Knowledge of these schemes can enable your business to make an assured and economically responsible transition to renewable power.
In this guide, we’ll explain the UK government grants and funding options currently available for different industries, and how Noble Green Energy can help your business access them efficiently.
Are There Government Grants for Solar Panels in the UK?
One of the most common questions businesses ask is ‘Do the UK government offer grants for solar panels?’
The good news is that there are several government incentives and grants that have provided opportunities available to UK businesses. However, unlike previous national schemes, there is currently no universal government grant that covers the cost of installing solar panels for every UK business.
Instead, the financial support comes in several forms, and the right funding option depends on factors such as your business size, location, sector and energy usage.
Solar Panel Grants for Businesses
Did you know that the UK government has almost £5 billion of funding available to help businesses become greener? As part of their commitment to reach net zero emission by 2050, their portal provides access to national funding streams and what schemes are currently available to be applied for.
Capital Allowances
The Annual Investment Allowance (AIA) allows businesses investing in plant and machinery to claim tax relief of 100% on qualifying capital investment, such as solar panels, of up to £1 million each year. This can save your corporation tax bill substantially in the year you make the purchase, and you can take advantage of this by ensuring your investment is timed effectively in your year of taxation.
Another option is First Year Allowances (FYA) which allows businesses to claim tax relief of 50% on special-rate assets, including long-life assets such as solar panels.
Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) is an initiative backed by the government which enables firms to make money from selling unused electricity back into the grid.
When your company installs solar PV panels with capacity of up to 5MW, the SEG guarantees you are paid for each kilowatt-hour (kWh) you export which can typically be £0.03-0.05 per exported kWh. SEG rates are different with each supplier, so comparing them is critical to achieve the highest returns.
For businesses with large commercial solar installations, SEG payments can help improve the long-term return on investment.
Local Growth Hub Solar Grants
It’s a good idea to research your business’ local growth hub solar grants as many Combined Authorities and Local Enterprise Partnerships operate helpful schemes. Some can offer up to 30% capital grants towards the purchase and installation of rooftop solar PV for local businesses.
For example, the West of England Growth Hub has run a “Rooftop Solar Grants” programme for those with a generation capacity of at least 50kWp DC within a single array and an inverter output of at least 40kW AC. You can find your Local Business Growth Hub here.
Sector-Specific Solar Panel Grants
While there isn’t a single government grant available to every UK business, many industries can access funding that’s specifically designed for their sector.
Here are some of the key schemes currently available.
Solar Panel Grants for Farms
There are new UK government solar panel grants available for arable, horticulture and livestock farms coming out all the time. It’s important to keep an eye on available opportunities for your agricultural business. Some current examples of these include:
Improving Farm Productivity (IFP) Grant
This Department for Environment, Food & Rural Affairs (DEFRA)-run grant offers 25% capital support specifically for solar PV equipment on farm rooftops or reservoirs. It is currently on round 2 and provides a minimum grant of £15,000 or maximum £100,000 per applicant.
Farming Equipment & Technology Fund (FETF)
FETF grants will be on the smaller side, between £1,000-£25,000, but a total of £30 million will be available. They have been introduced to support technology that will boost productivity and environmental performance on farms. Some rounds will explicitly include solar PV systems, so make sure to be aware of new rounds announced.
Solar Panels for the Public Sector
Local Partnerships help improve the carbon and energy performance of the public sector by retrofitting workplaces, schools, hospitals and more with energy efficient infrastructure. You can find out more and apply for improvements here or see more grants available below.
Public Sector Decarbonisation Scheme (PSDS)
The PSDS provides funding to public sector organisations for energy efficiency measures, including solar installations. Schools, NHS trusts, councils, and emergency services can access significant grants through this scheme.
This is a competitive funding process with strict timelines and the Public Sector Low Carbon Skills Fund runs alongside PSDS to help bodies develop decarbonisation plans.
Clean Energy Investment
On 15th May 2025, the UK government announced a £630 million clean energy investment was available for public buildings to upgrade with solar panels and heat pumps. It has been introduced to save around £650 million a year on average on energy costs which will consequently help curb carbon emissions for the country.
How Much Could a Business Save?
Every commercial solar installation is different, but businesses typically benefit from savings in several ways:
- Lower electricity bills
- Protection against rising energy prices
- Cut your carbon emissions and help tackle the climate crisis
- Excellent return on investment
When combined with available government incentives, commercial solar panels can become even more cost-effective. Many businesses find that the reduction in energy costs helps offset the initial investment over time, while continuing to general savings after installation.
Can Small Businesses Get Government Grants for Solar Panels?
Yes, both small and medium-sized businesses (SMEs) can often access the same funding opportunities as larger organisations, particularly through regional grant schemes and the Smart Export Guarantee.
Eligibility depends on your business location, sector and the specific funding programme available at the time of application.
Why Invest in Commercial Solar?
Installing solar panels is no longer simply about reducing carbon emissions.
For many UK businesses, commercial solar is a long-term investment that can deliver:
- Lower operating costs
- Greater energy independence
- Increased resilience against energy price volatility
- Improved sustainability credentials
- Progress towards Net Zero goals
With electricity prices remaining unpredictable, generating your own renewable energy can provide valuable cost certainty for years to come.
How to Apply for Government Grants for Solar Panels
Now you know where to find all the UK government grants and schemes, you need to make sure you choose the right one for you and your business. From there, you can look into the individual grants and check the eligibility criteria and application windows. Some of them will run indefinitely whereas others will only be available in phases.
Regarding the criteria, some may require quotes from MCS-registered installers which will factor in any grid connection or roof-strengthening costs. As well as this, you will usually need an EPC, project plans, full cost breakdown and evidence of financial standing.
Grants aside, we recognise many businesses require accessible financing models to install solar panels. Some of our customers have used financial solutions such as Power Purchase Agreements (PPA), Asset Finance and Hire Finance to help them achieve their goals.
Noble Green Energy specialises in delivering renewable energy solutions to businesses across the UK. Whether it’s assessing your site’s suitability or installing and maintaining your business’ solar panels, we handle every detail. Our experience stretches across a wide range of industries, and our in-house experts are always up to date with the newest grant parameters and energy legislation.
Get in touch with us today to talk about your needs and begin the journey towards your sustainable future with Noble Green Energy.
Disclaimer: Finance details we may provide is for your information only and intended for businesses, it is not advice or recommendation to engage with a finance provider. We make no representations or warranties as to status or suitability of any finance provider, the products or services, or information provided, any reliance you chose to place on the information is done so at your own risk (and we will not be liable for any losses or damages in relation to the same). Noble Green Energy is not FCA authorised and regulated under the UK’s Financial Services & Markets Act 2000 as it is not a lender, nor does it carry on regulated activities related to credit broking.
