Energy bills going up again? You’re not alone. All over the UK, small and large, all types of businesses are feeling the pressure of growing electricity costs, tighter margins, and rising expectations to function more efficiently. Solar panels are one of the obvious solutions that promise lower energy bills, more control over your power supply, and a smaller carbon footprint. But one question keeps coming in the mind:
“Is there any financial support or grant available for businesses like ours?”
It is indeed a good question. Integrating solar panels in uk can feel like a big investment, particularly when cash flow is important and you need to keep an account of every penny spent. You might have heard mixed messages – some people say grants are no longer into existence, others recommend tax breaks or export payments, and all of these confuses you.
The good news? Support for solar for UK businesses has not vanished but it’s just changed.
Local councils offer grants or financial support that typically cover around
30%–50% of eligible project costs for renewable energy saving projects.
While there is not a particular or specific “solar grant” for every business but there are various ways to minimise the cost of going solar. Many UK businesses are using everything from tax incentives and export payments to local funding schemes and flexible financing options to make solar panels more cost-effective. In this guide, we will get to know everything about available financial support and how your business could benefit.
Table of Contents
Why the UK Supports Business Solar Installations?
The UK government actively encourages businesses to invest in renewable energy as part of its net zero and energy security goals. Supporting commercial solar helps to:
- Reduce pressure on the national grid
- Cut carbon emissions
- Improve long-term energy resilience for businesses
- Protect companies from volatile electricity prices
Rather than offering one universal grant, support is delivered through a combination of tax relief, export payments and finance schemes.
What Financial Support Is Available for UK Businesses?
Government and Local Authority Grants
There is no single nationwide solar grant for all UK businesses. However, funding may be available through:
- Local council or regional authority schemes
- Growth hubs and enterprise partnerships
- Rural, agricultural or innovation funding programmes
- Sector-specific decarbonisation grants
These schemes are usually:
- Time-limited
- Region-specific
- Competitive
- Focused on SMEs or high-energy-use sectors
Availability varies depending on location and business type.
Capital Allowances and Tax Incentives
For many UK businesses, tax relief provides the biggest financial benefit.
Full Expensing / Capital Allowances
- Solar panels qualify as plant and machinery
- Businesses can often deduct 100% of the cost from taxable profits
- This significantly reduces corporation tax liability
- Particularly valuable for profitable SMEs and larger companies
VAT Relief
Solar installations may qualify for zero-rated VAT when meeting eligibility criteria –
- This reduces upfront installation costs
- Tax incentives often make solar viable even without grant funding.
Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) allows businesses to earn money by exporting surplus solar electricity back to the grid.
Key points:
- Payments are made by licensed energy suppliers
- Rates vary by supplier
- Smart meters are required
- Particularly beneficial for businesses generating more energy than they use during the day
While SEG is not a grant, it improves long-term return on investment.
Low-Interest Loans and Green Finance
Businesses can also fund solar panels through:
- Government-backed green loans
- Bank sustainability finance products
- Asset finance and hire purchase agreements
These options spread the cost over time and allow businesses to install solar with minimal upfront capital.
Power Purchase Agreements (PPAs) and Leasing
For businesses that want no upfront cost, Power Purchase Agreements and leasing arrangements are popular.
With these options:
- A third party installs and owns the solar system
- The business buys the electricity at a reduced, fixed rate
- Maintenance is often included
- Ideal for cash-flow-conscious businesses or leased buildings
Who Is Eligible for Solar Funding in the UK?
Eligibility depends on the type of support being accessed, but typically considers:
- Business size (SME or large enterprise)
- Location and local authority
- Energy usage and system size
- Property ownership or landlord consent
- Use of accredited solar installers
- Compliance with planning and grid regulations
Most UK businesses — including offices, warehouses, farms, factories, retail units and hospitality venues — can access some form of financial support.
How Much Support Can a Business Receive?
The level of support varies, but solar funding can typically reduce costs through:
- Tax relief worth thousands of pounds
- Export payments over the system’s lifetime
- Reduced electricity bills from day one
- Improved payback periods, often 5–7 years or less
When combined, these benefits can make solar panels one of the strongest long-term investments a UK business can make.
How to Apply for Solar Grants or Financial Support?
- Assess your energy usage and roof or land suitability
- Identify local grants or funding schemes
- Obtain quotes from MCS-accredited installers
- Apply for grants before installation begins
- Install the system and meet compliance requirements
- Claim tax allowances and register for SEG payments
Many businesses work with solar specialists who manage funding checks as part of the installation process.
Common Mistakes to Avoid
- Starting installation before grant approval
- Missing application deadlines
- Assuming grants are guaranteed
- Using non-accredited installers
- Failing to consider tax incentives
- Planning early is essential to maximise available support.
Are Solar Panels Worth It Without Grants?
Yes. Even without grants, solar panels often deliver:
- Significant long-term electricity savings
- Protection against rising energy prices
- Strong returns over a 25+ year lifespan
- Improved sustainability and ESG credentials
Grants and incentives simply accelerate payback and reduce risk.
Wrapping Up!
In conclusion, while there isn’t a single nationwide solar grant for UK businesses, there are plenty of ways to make solar panels financially attractive — from tax incentives and export payments to local funding schemes and tailored finance options. Solar can deliver long-term savings, improve sustainability credentials, and make your business more resilient to energy price volatility.
If you’re considering taking the next step, working with an experienced partner can make all the difference. Arc Renewables is a UK-based renewable energy specialist that supports businesses throughout the entire solar journey from independent feasibility assessments and funding advice to full project delivery, grid connection and ongoing maintenance. They work with commercial clients across sectors to cut costs, reduce carbon and simplify the path to net zero.
By combining strategic advice with practical delivery expertise, companies like Arc Renewables can help you unlock available financial support, maximise return on investment, and confidently go solar.
Frequently Asked Questions about Solar Panel Grants
Can businesses get solar panel grants in the UK?
There is no single nationwide solar grant for all UK businesses. However, many companies can access local authority grants, regional funding schemes, sector-specific programmes, tax incentives and export payments that significantly reduce the cost of installing solar panels.
Are solar grants only available to small businesses?
No. While many grants are aimed at SMEs, larger businesses may still qualify for tax relief, low-interest green finance, PPAs or sector-specific decarbonisation funding.
Can solar grants be combined with tax incentives?
In many cases, yes. Businesses can often combine local grants with capital allowances and export payments, improving payback periods and overall return on investment.
Do solar grants need to be repaid?
Most grants do not need to be repaid, provided the system is installed correctly and all scheme conditions are met. Loan-based funding, however, must be repaid under agreed terms.
Can leased or rented buildings install solar panels?
Yes, but landlord permission is required. Many tenants choose Power Purchase Agreements (PPAs) or leasing options to avoid upfront costs.
How long does it take to apply for solar funding?
This depends on the scheme. Local grants may take several weeks, while tax incentives are usually claimed during the normal accounting process.
Is solar still worth it without grants?
Yes. Falling installation costs and rising electricity prices mean solar panels often deliver strong long-term savings even without grant funding.