Are you wondering what government grants are available for commercial solar and whether now’s the right time to make the switch? Think of the reduced overheads, greater energy independence, and meaningful progress toward net zero targets; all with financial support that’s closer than you might think.
Still, finding the right grant or incentive isn’t always straightforward. That’s exactly why we’ve created this guide – to clarify the options and help your business access funding that delivers measurable ROI.
From rising energy costs to the complexity of commercial tax relief, the challenges are real. At SESC Solutions, we support organisations across the South of England with bespoke solar installations and expert advice on navigating grant eligibility.
Why Invest in Commercial Solar for Your Business?
Choosing solar is no longer a speculative decision; it’s a strategic one. Businesses are looking for ways to offset escalating energy bills while future-proofing operations. By taking advantage of solar grants in the UK, organisations can significantly reduce upfront investment and fast-track returns.
Whether you’re aiming for net zero targets or simply seeking to lower carbon emissions, solar technologies offer a proven route to long-term savings and energy resilience.
Far from being just a box-ticking exercise, sustainability is a brand value and financial asset. With the right system and funding approach, your business can generate energy, reduce reliance on the grid, and reinvest savings into core growth areas.
Overview of UK Solar Grants and Incentives
Now that you’re asking what government grants are available for commercial solar, we’ll guide you through the key financial schemes currently open to UK businesses.
These opportunities vary depending on region, as England, Scotland, Wales, and Northern Ireland each offer distinct incentives tailored to local sustainability goals.
Below is a round-up of the main UK solar grants and programmes you should consider:
- Smart Export Guarantee (SEG)
- Low Carbon Skills Fund
- Annual Investment Allowance (AIA) and Enhanced Capital Allowances (ECA)
- VAT relief and reduced rates for solar installations
- Local authority grants for commercial energy upgrades
- Regional funding schemes, including Scotland’s CARES and support from the Welsh government
To learn more about eligibility and application requirements, visit the Ofgem website.
Key Government Incentives for Commercial Solar in the UK
Now that you’ve seen the overview, let’s look at the most impactful schemes available to commercial clients ready to invest in solar.
Smart Export Guarantee (SEG)
Introduced in 2020, the Smart Export Guarantee enables UK businesses to sell surplus solar electricity back to the grid via licensed energy suppliers. Qualifying depends on having an eligible MCS-certified solar PV system and smart metering in place.
Although tariffs differ by supplier, returns can range from 3p to 15p per kWh, making solar a passive revenue stream for properties with large roof space. This scheme incentivises not just energy savings but earnings. For a full list of suppliers offering SEG tariffs, visit Ofgem’s SEG supplier list.
Enhanced Capital Allowances (ECA) and Tax Relief
When businesses invest in qualifying energy-saving technologies, including solar PV, they may offset costs against taxable profits through ECAs. For Small and Medium-sized Enterprises (SMEs), this can mean deducting up to 100% of the investment in the first year.
Larger organisations may benefit via Annual Investment Allowance (AIA), which allows writing down up to £1 million in qualifying assets. So, whether you’re installing a modest 10kW system or undertaking a larger commercial rollout, the tax savings can scale with investment. Solar is therefore not just green, it’s financially sound.
VAT Reduction for Solar Installations
Understanding VAT reduction on solar is vital for budgeting your project. While residential properties often qualify for a zero VAT rate, commercial installations may also benefit under certain schemes.
For eligible charitable premises or qualifying community installations, VAT is reduced from the standard 20% to just 5%. This incentive can significantly reduce capital expenditure and improve ROI forecasts. Always consult with your installer and HMRC guidance to ensure your business meets criteria for reduced VAT rates before proceeding.
Local Authority and Regional Grants
Funding at the local level is often overlooked, but it shouldn’t be. Schemes such as Scotland’s CARES programme and Welsh Government grants offer targeted support tailored to regional sustainability goals.
In England, many councils provide green energy grants for SMEs and commercial landlords. Use business grant finder tools such as GOV.UK’s grant finder to track availability in your area. When it comes to commercial solar funding, UK business owners can benefit from layered support, from national schemes to local incentives, and sector-specific resources.
How to Apply for Commercial Solar Grants
To learn more about securing funding, follow these basic steps:
- Research eligibility criteria and match them against your business profile
- Compile necessary documentation including energy audits, roof assessments, and installation quotes
- Complete online applications via GOV.UK or local authority portals
- Consult with an accredited installer to ensure technical compatibility
- Track application deadlines and respond promptly to follow-up enquiries
SESC Solutions simplifies the grant application process with hands-on support and technical insights. From document prep to installation feasibility, we help you navigate energy efficiency grants for UK businesses confidently.
Work With SESC Solutions to Maximise Your Grant Eligibility
Book a free grant eligibility assessment today by calling 01747 445 509 or reaching out through our contact form.
We handle everything from consultation and audits to navigating complex paperwork, helping your business qualify when applying for government solar incentives. UK homeowners will see benefits, but our focus lies in driving commercial success.
As a family-run firm with 30+ years’ experience and DBS-checked engineers, we deliver dependable installations you can trust.
