UK grants and capital funding for commercial solar.
An honest map of what's actually available in 2026 — separating capital grants (rare, mostly public-sector) from tax incentives (broad, generous), revolving loan funds (regional, growing), and competitive innovation funding.
PSDS Phase 4
Salix decarbonisation
MEEF, GMCA, City Leap
Scottish, Welsh, NI schemes
The honest framing
There is more confusion in this category than any other in commercial solar. Search results lump together capital grants (free money), revolving loans (money you pay back), tax incentives (deductions you claim against profits), and regional funds (typically equity or loans). Each has a different cash impact, a different eligibility test, and a different route to access. The first job of structuring a project is to map your eligibility against each of these — many projects access two or three at once.
Capital grants (cash, public sector, very competitive)
PSDS Phase 4 (administered by Salix)
The largest UK capital grant for commercial-scale solar. Open to central government, NHS, schools, FE colleges, universities, local authorities, and emergency services. Phase 4 awards typically range 30–80% of qualifying spend depending on the cost-per-tonne CO₂ saved metric. Solar-only applications rarely score competitively — winning bids bundle solar with heat pumps, fabric efficiency, and LED relighting in a single decarbonisation package.
Detail on PSDS →Solar+storage and grid-services innovation
Open to private and public sector. Strongest fit for projects with research-grade demonstration value: novel inverter architectures, grid-services integration, agrivoltaic pilots, second-life battery integration. Typical grant intensity 50–70% of qualifying R&D and demonstration costs, capped at the project ceiling for the specific competition. Calls open quarterly through innovateuk.ukri.org.
Devolved nation public-sector capital
Scotland: Heat Network Fund, Scotland's Public Sector Heat Decarbonisation. Wales: Welsh Government Energy Service capital grants for public sector. Northern Ireland: limited dedicated capital, mostly project-by-project. All restricted to public sector or community ownership and require detailed cost-benefit modelling against carbon thresholds.
Revolving loans (debt, public + some private)
Public sector zero-interest decarbonisation loans
Salix runs revolving loan facilities for public sector decarbonisation that complement PSDS grants. Loans typically zero-interest with payback through demonstrated energy savings. Often used to fund the non-grant portion of a PSDS project so the recipient body can deliver larger packages without depleting capital reserves.
Greater London revolving green loan fund
£500m+ revolving fund providing finance to London public-sector and not-for-profit organisations for energy efficiency and renewable projects. Senior debt at competitive green-finance rates, typically 6–8% APR depending on risk profile. Solar PV is one of the eligible technologies.
GMCA, WMCA, WYCA, others
Greater Manchester Combined Authority, West Midlands Combined Authority, West Yorkshire Combined Authority, and other regional bodies operate green-finance facilities of various sizes — typically open to public sector and community projects within their footprint. Terms vary by authority. We track the open programmes and recommend where eligible.
Tax incentives (deductions, all profitable companies)
Time-limited deduction extended to 31 March 2026
The single most consequential incentive for profitable corporation-tax-paying companies. Deduct 50% of qualifying capital cost from year-one taxable profits, with the remaining 50% in the special-rate pool at 6% writing-down allowances. Worth typically 17–19% of capital cost as lifetime tax saving for businesses at the 25% main rate.
Detail on 50% FYA →100% deduction up to £1m per accounting period
Where AIA headroom remains for the period, full deduction of qualifying spend in year one. For projects under £1m where AIA is available, AIA generally produces stronger year-one cash than the FYA + special-rate pool route, though lifetime values converge for profitable businesses.
Detail on AIA →Export tariffs from licensed suppliers
Mandatory scheme requiring large electricity suppliers to pay generators for exported solar. Tariffs vary by supplier — 4–15p/kWh depending on tariff structure (fixed-price vs market-linked). Modest revenue contribution on commercial systems sized for self-consumption (typically <10% of annual generation exported).
Detail on SEG →Eligibility map by organisation type
| Organisation | PSDS | Salix loans | Regional funds | 50% FYA | AIA |
|---|---|---|---|---|---|
| Limited company (profitable) | No | No | Some regions | Yes | Yes |
| Limited company (loss-making) | No | No | Some regions | Carry-forward only | Carry-forward only |
| School / academy / MAT | Yes | Yes | Most regions | No | No |
| NHS Trust | Yes | Yes | Most regions | No | No |
| Local authority | Yes | Yes | Most regions | No | No |
| University | Limited | Yes | Most regions | Trading subsidiary only | Trading subsidiary only |
| Charity / faith group | If property-owning | If eligible | Some regions | No | No |
| Property REIT | No | No | No | Yes (via tenant or PPA) | Yes |
Per-vertical grants guides
Different organisation types have access to different funding routes. Detailed guides per sector with worked examples and eligibility maps:
Schools & Academies grants
PSDS, CIF, Salix, MAT-portfolio applications. Eligibility, worked example, application strategy.
NHS Trusts grants
PSDS Phase 4, Net Zero NHS, Salix loans. Multi-site bundled-application strategy that wins 75-100% grants.
Local Authorities grants
PSDS, MEEF, GMCA, WMCA, WYCA, SYMCA — combined-authority programmes for council estate.
Charities & Faith Groups grants
Foundation grants, charity-specific lenders, trading-subsidiary structures around capital allowance constraints.
Manufacturing Businesses grants
FYA, AIA, Industrial Cluster Decarbonisation, supply-chain ESG financing — what works for profitable trading manufacturers.
Grants and funding FAQs
Are there any UK grants for private-sector commercial solar in 2026?
Who is eligible for PSDS funding?
How does Salix interact with PSDS?
Is there equivalent funding in Scotland and Wales?
Can charities access dedicated solar funding?
Map your eligibility across all available routes
Send your organisation type, postcode, and project profile. We map your eligibility across grants, revolving loans, regional funds, and tax incentives in five working days.
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