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Grants & capital funding

UK grants and capital funding for commercial solar.

Reviewed by the Commercial Solar Finance editorial team (we take no installer or lender commissions). Last reviewed: June 2026.

Not sure which finance route fits your project? Answer six questions for an indicative shortlist of cash, hire purchase, loan, lease or PPA, ranked for your tax position, premises and budget.

Check your finance route

An honest map of commercial solar funding in 2026 — separating capital grants (rare; the main public-sector grant, PSDS, closed to new applications in November 2024) from tax incentives (broad, generous), regional loan funds, and competitive innovation funding.

Realistic expectations (checked 3 November 2026): private businesses have no open UK-wide capital grant for solar in 2026. PSDS closed to new applications in November 2024, and the IETF's last window closed on 19 April 2024 with no extension. Northern Ireland's NISEP grant (20%, capped at £30,000) is closed for 2026/27, with the next round expected in April 2027, and in Scotland CARES funds only non-profit community buildings. So most commercial projects are funded by cash plus the Annual Investment Allowance, a loan, hire purchase, a lease or a PPA.

Public sector grant

PSDS: closed Nov 2024

Public-sector loans

Salix: Scotland and Wales

Regional funds

MEEF, GMCA, City Leap

Devolved nations

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)

G01 · Public Sector Decarbonisation Scheme

PSDS (closed to new applications, November 2024)

Was the largest UK capital grant for commercial-scale solar (closed to new applications in November 2024). It was open to central government, NHS, schools, FE colleges, universities, local authorities, and emergency services. Awards depended on the cost per tonne of CO₂ saved, so funded bids bundled solar with heat pumps, fabric efficiency and LED relighting. Phase 4 is its final phase and no new round has been announced.

Detail on PSDS →
G02 · Innovate UK and UKRI competitions

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. Grant rates and caps are set competition by competition, and the calls fund research and demonstration rather than a standard rooftop array.

G03 · Scottish, Welsh, and NI capital schemes

Devolved nation public-sector capital

Scotland: Salix's zero-interest public-sector loan scheme (the Public Sector Heat Decarbonisation Fund's Phase 3 is closed). Wales: Salix's Wales Funding Programme (loans) for public bodies. 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)

L01 · Salix Energy Efficiency Loan

Public sector zero-interest loans: status

Salix has run zero-interest public-sector loans repaid from energy savings, often to fund the part of a PSDS project the grant did not cover. We could not confirm an open Salix solar loan for English public bodies; the Scotland and Wales guides cover the devolved schemes. PSDS closed to new applications in November 2024.

L02 · Mayor's Energy Efficiency Fund (MEEF)

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.

L03 · Other regional combined-authority funds

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)

T01 · 50% First Year Allowance

Permanent first-year allowance for special-rate assets

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 →
T02 · Annual Investment Allowance

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 →
T03 · Smart Export Guarantee

Export tariffs from licensed suppliers

Mandatory scheme requiring large electricity suppliers to pay generators for exported solar. Tariffs vary by supplier — 4–12p/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

OrganisationPSDS (closed Nov 2024)Salix loans (Scotland, Wales)Regional funds50% FYAAIA
Limited company (profitable)NoNoSome regionsYesYes
Limited company (loss-making)NoNoSome regionsCarry-forward onlyCarry-forward only
School / academy / MATWas eligibleScotland and Wales onlyMost regionsNoNo
NHS TrustWas eligibleScotland and Wales onlyMost regionsNoNo
Local authorityWas eligibleScotland and Wales onlyMost regionsNoNo
UniversityWas eligible (limited)Scotland and Wales onlyMost regionsTrading subsidiary onlyTrading subsidiary only
Charity / faith groupNo (never a PSDS category)NoSome regionsNoNo
Property REITNoNoNoYes (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:


Grants and funding FAQs

Are there any UK grants for private-sector commercial solar in 2026?
Direct cash grants for private-sector commercial solar are rare. The economic support for private-sector projects is delivered through the tax system — the 50% First Year Allowance, the Annual Investment Allowance, and the special-rate pool — rather than through capital grants. Some regional combined authorities operate revolving green-loan funds (MEEF in London, GMCA in Manchester) but these are debt instruments, not grants. Public bodies had the Public Sector Decarbonisation Scheme as a true grant until it closed to new applications in November 2024.
Who was eligible for PSDS funding?
PSDS Phase 4 was open to central government departments, NHS Trusts, schools and academies, further education colleges, universities (limited), local authorities, and emergency services. PSDS closed to new applications in November 2024 and Phase 4 is its final phase. Private-sector entities were never eligible directly. In June 2025 the government said it would fund no PSDS projects beyond those already awarded.
How did Salix work with PSDS?
Salix Finance delivered PSDS for the government: it ran the application, assessment and grant payments. PSDS closed to new applications in November 2024, and in June 2025 the government said it would fund no projects beyond those already awarded. We could not confirm an open Salix solar loan for English public bodies.
Is there equivalent funding in Scotland and Wales?
Scotland: the Business Energy Scotland SME Loan is interest-free but is not accepting new applications for solar PV, charities and non-profits can apply to the CARES Community Buildings Fund where the building has or is installing low-carbon heating, and public bodies can borrow interest-free from Salix's Scottish Public Sector Energy Efficiency Loan Scheme. Wales: the Development Bank of Wales Green Business Loan Scheme lends to businesses, and Welsh public bodies can borrow through Salix's Wales Funding Programme at a fixed 2.45%. Northern Ireland: the NISEP Commercial Energy Saving Scheme (20%, solar PV capped at £30,000) is closed to new applications for 2026/27, with the next round expected in April 2027, and the Invest NI energy efficiency grant is paused.
Can charities access dedicated solar funding?
PSDS was a public-sector scheme, and it closed to new applications in November 2024. Outside PSDS, charities access foundation grants for renewable energy (Big Lottery Climate Action Fund, Patagonia Environmental Grant Programme, Garfield Weston Foundation) on a competitive basis. Project economics for charities are usually best modelled on a long-term basis with reduced corporation tax exposure and a focus on cash-flow stability rather than tax allowance value.

UK commercial solar grants and funding 2026: the complete guide

UK commercial solar grants are not a single programme — they are a patchwork of national, devolved, and regional funding streams that operate on different cycles, have different eligibility criteria, and are administered by different bodies. With PSDS closed to new applications in November 2024, what remains is mostly loan funding, a few narrow devolved schemes and the tax allowances; combined-authority funds open and close, so check each fund's own page before relying on a row below. Getting the right one requires knowing which programme you qualify for and when its next window opens.

National grant programmes for commercial solar UK 2026

ProgrammeAdministratorGrant rateMax grantEligible organisations2026 status
Public Sector Decarbonisation Scheme (PSDS)Salix Finance / DESNZSet bid by bid (no standard rate)No ceiling (project-based)NHS trusts, local authorities, schools, colleges, universities, fire/police, central government NDPBsClosed to new applications Nov 2024; Phase 4 is the final phase
Salix loans (terms differ by nation)Salix Finance100% of project cost£5m+ (programme-level)England: we could not confirm an open Salix solar loanCheck current terms with Salix before planning around a loan
Warm Homes: Local Grant (WH:LG)Local authorities (via MHCLG)Up to 100%Household-level; not commercialLow-income households in social/private rental; NOT commercialActive 2025–2027; not relevant for commercial solar
UK Shared Prosperity Fund (UKSPF) — local allocationsLocal authorities / LEPsVariable; 20–80%Typically £25k–£250kSMEs, community organisations; varies by local authority allocation2022–2025 programme; 2026+ allocation subject to spending review

Regional and combined authority commercial solar funding 2026

RegionFund nameTypeRate / amountEligibilityAdministrator
Greater ManchesterClean Business Grant / Business Growth Hub green loansGrant + loan hybridGrant: up to £15k; Loan: up to £150k at 3.5–6.0%GMB-registered SMEs; energy audit requiredBusiness Growth Hub (BGH) Manchester
West YorkshireWest Yorkshire Investment Fund — Clean Energy LoansLoanUp to £200k at 4.0–6.5%SMEs under 250 employees in WY CA areaWest Yorkshire Combined Authority
South YorkshireSouth Yorkshire Mayoral Fund — Green Business FinanceLoan + grantGrant: up to £10k; Loan: up to £100kBusinesses in Sheffield City RegionSheffield City Region Business Investment
West MidlandsWest Midlands Net Zero FundLoanUp to £250k at 5.0–7.5%West Midlands businesses; energy auditWest Midlands Combined Authority
Greater LondonLOOP Fund / London Business HubLoanUp to £100k at 3.0–5.5%London-based SMEs employing 1–250London Business Hub / GLA
MidlandsMidlands Engine Investment Fund II (MEIF II)LoanUp to £250kEast and West Midlands SMEs via partner banksNPIF partner banks
South WestSouth West Investment Group — Clean Business LoansLoanUp to £150k at 4.5–7.0%SW England SMEsSouth West Investment Group
North EastNorth East Fund — Business FinanceLoanUp to £150kNorth East LEP area businessesNorth East Fund Ltd
CornwallCornwall and Isles of Scilly Investment FundLoan + grantGrant: up to £25k; Loan: up to £150kCornwall-registered businessesBritish Business Bank / CIoS Growth Programme
Scotland (all)Business Energy Scotland (BES) SME loanLoan + audit grantInterest-free loan up to £100k, not accepting new applications for solar PV at the last check (26 Sept 2026); free energy auditScottish businesses (SMEs and non-SMEs)Business Energy Scotland (Energy Saving Trust)
Wales (all)Development Bank of Wales Green Business Loan SchemeLoan£1,000 to £1.5m over up to 15 years; solar PV is a named measureWales-based businesses trading for two years or moreDevelopment Bank of Wales
Northern IrelandNISEP Commercial Energy Saving Scheme (Power NI)Grant20%, solar PV capped at £30,000; closed to new applications for 2026/27, next round expected April 2027Northern Ireland commercial and non-domestic propertiesUtility Regulator / Energy Saving Trust

How to check if a combined authority fund is currently open

Combined authority green loan and grant programmes open and close on rolling bases — a fund that was active in Q1 2026 may be oversubscribed and closed by Q3. The fastest way to check: (1) Search the fund name plus “apply now” or “current round”; (2) Contact your local Growth Hub — the national network of Growth Hubs (businesssupport.gov.uk) maintains live information on all regional business finance programmes; (3) Check the British Business Bank's “Finance Hub” at british-business-bank.co.uk/finance-hub which aggregates regional fund availability. Do not rely on grant directories — they are often out of date.

Devolved nation grant programmes for commercial solar

Each nation has few live routes and a longer list of closed ones (checked 3 November 2026):

  • Northern Ireland. The NISEP Commercial Energy Saving Scheme (20%, solar PV capped at £30,000) is closed to new applications for 2026/27; NISEP is extended for 2027 to 2029, so check Power NI for the next round, expected in April 2027. The Invest NI Energy Efficiency Capital Grant is paused. See what is open in Northern Ireland.
  • Scotland. No grant pays towards a business's rooftop solar. The Business Energy Scotland SME Loan is interest-free but not taking solar PV; CARES funds non-profit community buildings (up to 80%, to £80,000) that have or are installing low-carbon heating; Salix's Scottish Public Sector Energy Efficiency Loan Scheme lends interest-free to public bodies.
  • Wales. Ynni Cymru's 2026/27 round closed on 21 May 2026. The Development Bank of Wales Green Business Loan Scheme lends £1,000 to £1.5m over up to 15 years, and public bodies borrow through the Wales Funding Programme at a fixed 2.45%. More in Wales: the DBW loan after Ynni Cymru.

Combining grants with private sector finance: the stacking rules

Most grant programmes allow stacking — receiving both a grant and a commercial loan or lease for the same project — as long as the combined public sector contribution (grants + subsidised loans) does not exceed the Subsidy Control thresholds under the UK's post-Brexit subsidy control framework. For commercial solar, the practical limit is: (1) UKSPF and combined authority grants: maximum £500k in Minimal Financial Assistance (MFA) over any 3-year period; (2) Stacking a combined authority grant (e.g. £25k) with a commercial green loan for the balance is permitted in all regions as long as the grant does not exceed MFA thresholds. Always declare any prior grants received in the last 3 years when applying for a new programme.

If a grant doesn't fit: the routes most projects use

  • Own the array with hire purchase or a loan. The buyer claims the AIA on the first £1m and the 50% first-year allowance above it, because CAA 2001 s.104A makes solar special-rate plant.
  • No capital at all. Under a power purchase agreement a provider funds and owns the array and you pay for the power it produces. Now PSDS has closed, public bodies and charities weighing that against waiting for a grant can read PPA or grant: which fits a public or private site on solarpowerpurchaseagreements.co.uk.
  • Pay cash and claim the allowances. A profitable company claims the AIA on the cost through its tax return, with no application window or competitive scoring.

We explain the routes; we do not arrange finance or pass your details to lenders or PPA providers. We reply by email.

Is commercial solar "capital free"? The three routes to zero upfront cost

"Capital free commercial solar" means deploying a solar system with no upfront capital payment from the business. In the UK commercial solar market, three distinct structures achieve this — each with different ownership and financial consequences.

RouteCapital outlayWho owns the panelsCapital allowancesOngoing payment
Power Purchase Agreement (PPA)ZeroDeveloper/funder owns the systemDeveloper claims AIA/FYAPay per kWh consumed at discounted rate (typically 10–30% below grid tariff)
Operating leaseZero (nil to first rental)Lessor (leasing company) ownsLessor claims AIA/FYAFixed monthly lease rental; off-balance-sheet under older UK GAAP
Public-sector capital budget or borrowingZero or minimalPublic sector body ownsPublic body claimsPSDS grants closed to new applications in November 2024; savings repay a budget or loan over time

Which capital-free route is right for your business?

PPA suits large consumption sites (above 200kWp) that want simplicity — one monthly bill per kWh, no capital, no maintenance responsibility. Operating lease suits businesses that want off-balance-sheet treatment (improving return on assets) but with fixed monthly payments not linked to generation. For NHS trusts, councils and universities, a PSDS grant plus a Salix loan was the cheapest route while it ran; PSDS closed to new applications in November 2024, so public bodies now compare capital budgets, borrowing, leases and PPAs.

UK commercial solar grants 2026: all major schemes compared

Grant schemeWho it's forTypical grant amountApplies to solar?Application route
Public Sector Decarbonisation Scheme (PSDS)NHS, councils, universities, ALBs (England only)Set bid by bid (no standard rate)Only inside heat-led bidsClosed to new applications Nov 2024; no funding beyond awarded projects (June 2025)
Salix Energy Efficiency Loans (SEEL)Scottish public sector bodies0% interest loan (not a grant)Yes — solar + batteryScottish scheme; check current status with Salix before planning around it
UK Shared Prosperity Fund (UKSPF)Businesses in UKSPF priority areas (via Local Authority)15–40% of eligible capital cost (varies by LA)YesVia your Local Authority's business support team; rounds set by each LA
Combined Authority Clean Growth FundsBusinesses in CA areas (WMCA, West of England, Greater Manchester, Tees Valley, South Yorkshire etc.)25–50% of eligible capital cost, typically capped at £75,000–£150,000YesVia Combined Authority business portal; competitive rounds
Rural England Prosperity Fund (REPF)Rural businesses in England (via Rural LA)Up to 40%, typically capped at £75,000Yes — farm, rural business, rural accommodationVia your District/Borough Council rural support team
Business Energy Scotland SME loan (Scotland)Scottish SMEsInterest-free loan up to £100,000Not accepting new applications for solar PV at the last check (26 Sept 2026)Via Business Energy Scotland
NISEP Commercial Energy Saving Scheme (Northern Ireland)NI commercial and non-domestic properties20% (solar PV capped at £30,000)YesVia Power NI (closed to new applications for 2026/27; next round expected April 2027)
Net Zero Innovation Portfolio (NZIP)UK businesses via Innovate UK innovation grantUp to 70% for early-stage; less for demonstrationYes — where solar is part of innovation project (not standard deployment)Via Innovate UK IFS (Funding Service); competitive rounds

How to identify your eligible grants: a 5-question checklist

Step 1: Are you a public sector body?

If yes: PSDS in England closed to new applications in November 2024, so compare capital budgets or borrowing, operating leases or power purchase agreements, and check the devolved public-sector schemes if you are in Scotland or Wales. If no: skip to step 2.

Step 2: Are you in an English Combined Authority area?

WMCA, West of England, Greater Manchester, South Yorkshire, Tees Valley, North of Tyne, and others run their own clean growth capital grant programmes. Check your Combined Authority business support portal. If yes: apply alongside other funding for combined coverage. If no: check step 3.

Step 3: Are you in a UKSPF priority area?

UKSPF is managed by Local Authorities. Most LAs with significant deprivation funding allocations have run UKSPF business capital grant rounds. Check your LA's economic development or business support team. UKSPF rounds are often time-limited and underadvertised.

Step 4: Are you in a rural area?

Rural England Prosperity Fund (REPF) provides up to 40% grant for rural businesses including farms, rural accommodation, and rural food/drink producers. Check with your District Council rural support officer. Farm solar specifically may also qualify for Farming in Protected Landscapes (FIPL) grants if in a National Park or AONB.

Step 5: Is your solar project innovative in any way?

Innovate UK's Net Zero Innovation Portfolio funds ground-breaking approaches — bifacial arrays on unusual structures, agrivoltaic installations, floating solar, novel storage integration. If your project has a genuine innovation component (not just a standard commercial rooftop), an Innovate UK grant application may be viable.

Can I combine multiple grants on the same solar project?

Grant stacking (combining multiple grants) is possible but requires careful management. Each grant programme has rules on maximum aid intensity (the maximum percentage of total project cost that can come from public funds). UK public grants are subject to Subsidy Control Act 2022 rules: most grants are under the Small Amounts of Financial Assistance (SAFA) exemption (cumulative cap of £315,000 over 3 years) or the de minimis state aid equivalent. Before stacking grants, check with each funder whether they allow combination with other public grants.

What is the REAP grant (Rural England)? Does it cover solar?

The Rural England Prosperity Fund (REPF) replaced the Rural Development Programme for England (RDPE) in 2023. REPF provides capital grants for rural businesses and rural tourism. Solar PV on rural commercial buildings (farms, food processors, rural pubs and accommodation) is an eligible measure. Applications go through your Local Authority; check for current round openings with your LA economic development team.

Can a limited company access any capital grants for commercial solar?

UK solar capital grants have mostly targeted public sector bodies, through PSDS until it closed in November 2024, or SMEs in specific regions (UKSPF, CA grants). Standard for-profit limited companies operating at full commercial scale (not SMEs) have very limited access to direct capital grants. The primary financial support for commercial-scale solar for profitable limited companies is the tax incentive route: Annual Investment Allowance (100% year one CT deduction) and 50% First Year Allowance. Combined, these cut the effective cost of solar by 25% (at standard CT rate) in year one — the equivalent of a 25% capital grant.

Public body? See public sector solar funding — what public bodies use now PSDS has closed.

Commercial solar funding routes compared

Commercial solar funding falls into six practical routes, and the right one is decided by three questions: how much upfront capital you want to commit, whether you need to own the system, and how the arrangement should sit on your balance sheet. The table below compares every mainstream route on those terms so you can shortlist before modelling the numbers in detail.

Funding routeUpfront capitalSystem ownershipWho claims capital allowancesBalance sheetBest suited to
Capital purchaseFull project costYour business, day oneYou – AIA 100% to £1m, then 50% FYAOn balance sheetCash-rich, tax-paying firms; strongest lifetime return
Green loan / asset financeNil to low depositYour businessYou – you own the asset outrightOn balance sheet (asset + loan)Owning and claiming allowances without draining cash
Hire purchaseNil to first instalmentYou – title passes at term endYou – treated as owner for allowancesOn balance sheetFixed monthly cost with retained ownership
Operating leaseNil to first rentalLessor (leasing company)Lessor – benefit passed through lower rentalsOff under FRS 102; on under IFRS 16Off-balance-sheet treatment, protecting borrowing capacity
Power purchase agreementZeroDeveloper / funderDeveloperOff balance sheet (a service contract)Large-consumption sites wanting no capital or maintenance
Public-sector capital budget or borrowingZero to minimalPublic bodyPublic body (limited relevance)On balance sheetPublic sector – up to ~80% grant, loan repaid from savings

Why balance-sheet treatment matters

Under FRS 102 – the standard most UK SMEs report to – an operating lease stays off balance sheet, so the system does not raise gearing or dilute return on capital employed. Companies reporting under IFRS 16 bring almost all leases on as a right-of-use asset. A PPA is usually a service contract rather than a lease, so it typically sits off balance sheet under both frameworks, though you should check for an embedded lease. The trade-off is direct: only the ownership routes – purchase, green loan and hire purchase – let you claim the capital allowances yourself, and for a profitable company that relief is worth around 25% of project cost.

Private sector vs public sector: which funding route fits you

The single biggest fork in commercial solar funding is whether your organisation pays corporation tax or is a public body. It decides whether your support arrives through the tax system or as a cash grant – the two rarely overlap. Use this decision table to see which column you sit in before you shortlist a route.

Decision factorPrivate-sector business (pays corporation tax)Public sector & not-for-profit body
Primary support mechanismThe tax system: AIA + 50% FYACapital budget, borrowing, lease or PPA
Headline value~25% of spend recovered as CT relief (AIA route at the 25% main rate)Up to ~80% grant of qualifying cost
Direct cash grant?Rare – regional SME funds only, tightly cappedNot now – PSDS closed to new applications in November 2024
When the benefit landsIn your year-one tax returnPaid against project delivery
Typical system ownerYou, a lessor, or a PPA developerThe public body itself
Key scheme / bodyHMRC capital allowances; SEG for export incomePWLB and capital budgets; Great British Energy rounds for selected schools and NHS sites
Main constraint£1m AIA cap per accounting periodNo open national grant since PSDS closed
Best zero-upfront routePPA or operating leaseOperating lease or PPA

The in-between cases

Two structures cross the divide. A private landlord with a public-sector tenant may agree a lease or PPA with that tenant. Charities and faith groups draw on foundation grants rather than tax relief because they have little or no corporation tax to shelter. If you sit in either camp, model both columns before committing – see public sector solar funding for the grant pathway.

Does the new 40% first-year allowance apply to commercial solar?

No. The 40% first-year allowance announced at the Autumn Budget 2025 (effective 1 January 2026) applies only to main-pool plant and machinery. Solar PV is special-rate plant under HMRC CA22335, so it is excluded – it continues to attract 100% relief through the Annual Investment Allowance up to £1m, then the 50% first-year allowance with a 6% writing-down tail on the balance. The linked cut in the main-pool writing-down allowance from 18% to 14% (April 2026) applies only to the main pool, so solar's 6% special-rate pool is unaffected and the £1m AIA is unchanged.

Is there a 2026 deadline to claim solar tax relief?

No. The Annual Investment Allowance and the 50% first-year allowance for special-rate assets are permanent, so there is no cliff-edge for commercial solar. The one date that matters is your own accounting period: the £1m Annual Investment Allowance resets each period, so phasing a large multi-site rollout across two periods can capture 100% first-year relief on more of the total spend.

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Funding for commercial solar PV: the routes ranked by who can use them

Funding for commercial solar splits into four tiers, and eligibility — not preference — usually decides which applies. Tier 1, grant funding, is confined to specific claimant classes (PSDS, the public-body grant, closed to new applications in November 2024): some English SMEs via windowed UKSPF allocations, and farms via the Improving Farm Productivity round at 25%. If you are a private limited company outside those classes, there is currently no general grant for commercial solar PV — and any funder telling you otherwise is worth checking carefully.

Tier 2, tax-relieved self-funding, is the workhorse: the Annual Investment Allowance returns 25% of the system cost in year-one corporation-tax relief for a profitable business, which no grant needs to beat. Tier 3, borrowed capital — green loans, asset finance, hire purchase — keeps that relief while removing the day-one cost. Tier 4, third-party capital — PPA or operating lease — needs no funding from you at all, in exchange for the provider keeping the allowances and margin.

The practical sequence for any funding search: confirm which Tier-1 schemes your organisation class can access; model Tier 2/3 against your tax position; only then price Tier 4 against what you would give up. Our capital-free routes guide covers the zero-day-one-cost end in detail.

For the lender-by-lender view of commercial solar financing, our companies guide compares every provider type.

With the grant windows closed, commercial solar funding in 2026 means choosing a finance route and layering the reliefs.

With grants closed, the capital allowances a tax-paying business keeps are the largest relief on a private-sector project.

Map your eligibility across all available routes

Send your organisation type, postcode, and project profile. We reply by email.

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