UK Solar Grants & Funding in 2026

Domestic support in 2026

There is no general government grant for home solar in 2026. The support that exists is narrower than most headlines suggest — and two schemes that used to be quoted, ECO4 and the Great British Insulation Scheme, are no longer routes to plan around.

0% VAT on home solar and batteries

Solar panels and battery storage fitted to homes in Great Britain are zero-rated for VAT until 31 March 2027, after which the rate is due to go to 5%. Your installer applies it automatically on a qualifying supply-and-install contract.

Smart Export Guarantee (SEG)

Not a grant but a guaranteed export tariff: larger electricity suppliers must pay you for the solar power you send to the grid from an MCS-certified system. Rates vary by supplier and change often — Octopus Outgoing Fixed, for example, moved to 12p/kWh in March 2026 — so compare before you choose.

ECO4 and the Great British Insulation Scheme

ECO4 is winding down: energy suppliers have until 31 December 2026 to finish their existing obligations, and the government has said there will be no ECO5. The Great British Insulation Scheme closed on 31 March 2026. Support for lower-income households is moving to the Warm Homes Plan.

Business tax relief in 2026

Annual Investment Allowance (AIA)

Up to £1m a year of qualifying plant and machinery spend deducted 100% in year 1 against taxable profits — and solar PV and batteries qualify. For a limited company paying 25% corporation tax, a £200,000 commercial PV system effectively costs £150,000 after AIA. Sole traders and partnerships can claim it too.

Full Expensing — not for solar

Full Expensing gives companies a 100% first-year deduction on main-rate plant and machinery, and has been permanent since November 2023. Solar panels and batteries are special-rate plant, so they are excluded. Above the £1m AIA limit, companies can claim a 50% first-year allowance on special-rate spend instead, with the balance at 6% a year.

Capital allowances on roof works

If the solar install includes ancillary roof reinforcement or repairs, the costs may qualify for the Structures and Buildings Allowance (SBA) at 3%/year, or for repair-revenue deduction depending on whether the works are revenue or capital.

Public sector solar funding

Salix loans (schools and public sector)

Salix Finance is government-funded and provides interest-free loans for energy-saving projects in the public sector, repaid from the savings — typically over five to eight years. Which bodies can apply, and when, depends on the programme Salix is running at the time, so check before planning around it.

Public Sector Decarbonisation Scheme (PSDS)

PSDS grants fund heat decarbonisation in public buildings, with solar usually eligible only alongside heat measures. The Phase 4 application window closed in November 2024 — watch for any future round rather than relying on one.

National Wealth Fund — local authority lending

The National Wealth Fund (formerly the UK Infrastructure Bank) lends to local authorities for net-zero infrastructure, which can include large council-led solar projects.

EV charging grants in 2026

• Workplace Charging Scheme (WCS): up to 75% of costs, capped at £500 per socket for installs completed from 1 April 2026, up to 40 sockets per applicant (£20,000). Staff and fleet parking only; the scheme is due to close on 31 March 2027.
• EV chargepoint grant for renters and flat owners: up to £500 towards a home chargepoint if you rent or live in a flat with private parking.
• 100% first-year allowance on chargepoints: businesses can deduct the full cost of new chargepoint equipment in year 1 (to 31 March 2027 for companies).
• EV Infrastructure Grant for staff and fleets: closed on 31 March 2026.

Regional and council schemes

Many council business energy grants in the East Midlands — including Newark & Sherwood's Business Decarbonisation Grant and Nottingham's business decarbonisation grant — were paid for by the UK Shared Prosperity Fund, which closed to new applications on 31 March 2026. Lincolnshire County Council's Rural Business Grant was a one-off recovery scheme that closed early. Local Enterprise Partnerships such as D2N2 and LLEP have wound down, with business support moving to councils.

New local schemes do appear, so check your council's business support pages — and we will flag anything genuinely open when we build your proposal.

How KMM applies on your behalf

Every project proposal we deliver flags the grants and tax allowances you qualify for. For Salix loan applications we work with your finance director to produce the application pack — typically a 25–40 page document including project description, technical specification, energy modelling, savings calculations and contractor procurement evidence. We apply, we manage the assessment correspondence, and we deliver the project against the grant milestones.