Solar Panel Grants for Businesses - UK Solar Guide 2025

In today’s rapidly evolving energy landscape, the UK government and local authorities are providing strong incentives for businesses, landlords, and homeowners to transition to renewable energy.

One of the most powerful ways to do this is through solar panel grants for businesses. These grants not only reduce the upfront cost of solar installations but also help companies achieve long-term savings and environmental compliance.

Whether you're a small business owner, a commercial property landlord, or a UK homeowner exploring solar energy as a way to cut utility costs and boost your EPC rating, this guide is tailored for you.

In this expert-level blog, we explore every angle of solar panel grants in the UK, so you can make an informed decision that benefits your bottom line and the planet.

What Are Solar Panel Grants for Businesses in the UK?

Solar panel grants for businesses in the UK are financial incentives designed to make solar energy more accessible and affordable. These grants help reduce the initial investment needed for solar installations, making it easier for businesses to transition to renewable energy.

They support the government’s broader goals of reducing carbon emissions and promoting sustainability across the commercial sector.

What is the Purpose of Solar Grants?

Solar panel grants aim to incentivise the adoption of renewable energy, reduce carbon emissions, and help businesses become more energy-efficient. These grants can cover a portion of the installation cost, offer tax relief, or provide ongoing export payments for surplus electricity.

Which Bodies Provide These Grants?

• Ofgem (Office of Gas and Electricity Markets)
• BEIS (Department for Business, Energy & Industrial Strategy)
• Local Councils and LEPs (Local Enterprise Partnerships)
• National Grid and Smart Export Guarantee (SEG)

What Are the Types of Solar Grants Available?

1. Capital Grants

Capital grants contribute directly to the purchase and installation cost of solar panels.

2. Tax Incentives

Businesses can claim capital allowances under the Annual Investment Allowance (AIA), reducing taxable profits.

3. Feed-in Tariffs (Historical)

Though closed to new applicants, some businesses still benefit from legacy Feed-in Tariff schemes.

4. Smart Export Guarantee (SEG)

SEG pays businesses for the electricity they export to the National Grid.

Who Qualifies for Business Solar Grants in the UK?

Most UK-based businesses, including SMEs, commercial landlords, and some non-profit organisations, may be eligible for solar panel grants. Qualification typically depends on factors like business size, property ownership, and compliance with energy efficiency standards such as EPC ratings.

Grants are intended to support those who demonstrate a commitment to reducing energy usage and lowering carbon emissions.

Can All Businesses Apply?

Eligibility varies by scheme, but generally includes:

• SMEs (Small and Medium Enterprises)
• Agricultural and industrial properties
• Commercial landlords
• Charities and non-profits with commercial operations

What Are the Common Eligibility Criteria?

• UK-based business or property
• Installation by an MCS-certified installer
• Compliance with current EPC rating requirements
• Connection to the National Grid

How Do Solar Panel Grants Benefit Landlords and Commercial Properties?

Solar panel grants can be particularly advantageous for landlords and commercial property owners, offering financial support to improve energy efficiency. These improvements can lead to better EPC ratings, increased property value, and higher tenant satisfaction. Grants help reduce the capital outlay for these upgrades, making solar energy a more feasible investment.

Why Should Landlords Consider Solar?

Solar installations improve a property’s Energy Performance Certificate (EPC), making it more attractive to tenants. From 2025, new tenancies must have an EPC rating of C or higher, so solar panels are a viable solution.

Key Benefits:

• Increased rental yields
• Reduced energy costs for tenants
• Improved property value

How Do Grants Help Commercial Properties?

Commercial properties often have large roof spaces, ideal for solar. Grants reduce installation costs and offer faster ROI.

What Are the Best Solar Panel Grants for UK Businesses Right Now?

Several active grant schemes in the UK offer valuable support for businesses investing in solar technology. These grants vary by region and provider, and if you're located in Wales or Scotland, you may benefit from tailored programmes like the solar panel grants in Wales and Scotland solar grants.

They offer everything from direct funding and tax relief to payments for surplus electricity. Here are the most impactful solar panel grants currently available to UK businesses.

1. Smart Export Guarantee (SEG)

Administered by: Ofgem

What it offers: Payment per kWh of surplus energy exported to the grid.

Eligibility: MCS-certified solar system; smart meter installed.

How to apply: Contact licensed SEG providers such as Octopus Energy or EDF Energy.

2. Salix Finance

Who it’s for: Public sector bodies, including schools and NHS facilities.

What it offers: Interest-free loans and funding for renewable projects.

3. Local Enterprise Partnership (LEP) Grants

What it offers: Varies by region; typically capital grants or partial funding.

How to find: Visit your local LEP website for available schemes.

4. Regional Green Business Funds

Many local councils now offer carbon reduction or sustainability grants to businesses.

Example: West Midlands Green Business Programme offers grants of up to £20,000.

How to Apply for Solar Grants in the UK

Step-by-Step Process

1. Assess Your Property: Check roof suitability and EPC rating.
2. Get Quotes: Obtain at least three quotes from MCS-certified installers.
3. Research Available Grants: Use resources like GOV.UK, Ofgem, and local LEPs.
4. Prepare Documentation: Business registration, property ownership proof, and energy bills.
5. Submit Application: Follow the grant provider’s application instructions.

Are Solar Grants Worth It for UK Businesses?

Yes, solar panel grants can be a highly worthwhile investment for UK businesses. By lowering the cost of installation, they accelerate the return on investment and enhance long-term savings. Additionally, these grants support businesses in meeting sustainability targets and improving their market competitiveness.

ROI and Payback Period

With grants, businesses can recoup installation costs in as little as 4–6 years.

Long-Term Savings

Solar panels reduce electricity bills, leading to lower operating costs.

Sustainability and ESG

Using renewable energy improves a company’s Environmental, Social, and Governance (ESG) profile, helping to meet corporate sustainability goals.

Our Verdict

For UK homeowners, landlords, and commercial businesses, the time to invest in solar energy is now. Government grants and incentive programmes have made solar technology more affordable and accessible than ever before. By reducing installation costs, enhancing property value, and lowering long-term energy bills, these initiatives provide a smart, sustainable solution for meeting environmental and economic goals.

Taking advantage of these opportunities not only helps future-proof your property but also supports the UK’s wider transition to clean energy. Ready to explore your options? Contact us for a free quote or browse our solar solutions to get started today.

For UK homeowners, landlords, and especially commercial businesses, solar panel grants for businesses offer a golden opportunity. From cutting energy bills and meeting EPC requirements to achieving green credentials and earning from surplus power, the benefits are too substantial to ignore.

Frequently Asked Questions

Do Solar Panels Work in the UK Climate?

Yes, modern panels are efficient even on cloudy days. The UK averages four peak sun hours/day, which is sufficient for solar viability.

Can I Combine Grants with Financing?

Yes. Many providers offer green loans or lease-to-own options in tandem with grant schemes.

Will Solar Panels Increase My Business Property Value?

Yes. Improved EPC ratings and lower operating costs enhance property desirability.