Renewable energy grants and funding for UK business
The grants, tax reliefs and finance routes that pay for business renewable energy in 2026, across solar, battery, heat pumps and EV charging.
Yes, businesses can get help with renewable energy, but in 2026 most of it is tax treatment rather than cash. The Annual Investment Allowance deducts the full cost of qualifying plant and machinery, solar panels, batteries, heat pumps and EV chargers included, from taxable profits in the year of purchase, up to £1 million: worth up to £250 per £1,000 spent at the 25% main rate of corporation tax, £190 at the 19% small profits rate. Companies can also use full expensing on main-rate plant and a 50% first-year allowance on special-rate plant, which is where gov.uk puts solar panels and heating and lighting systems. On top sit two cash grants, the Workplace Charging Scheme for EV sockets and the Boiler Upgrade Scheme for heat pumps up to 45 kWth; the Smart Export Guarantee for exported power; and, in England, a business-rates exemption for on-site renewable plant until 31 March 2035.
How the funding routes stack
The routes combine. An owner-occupier claims the allowances on the whole project, adds the Workplace Charging Scheme on any EV sockets, sells surplus solar under the Smart Export Guarantee and keeps the plant out of its rateable value. A public body in England waits for a Public Sector Decarbonisation Scheme window. If capital rather than return is the barrier, a power purchase agreement removes the capex because the funder owns the plant, and asset finance spreads it. The table records what each official source said on 30 September 2026; open it before you commit.
Every route at a glance, checked 30 September 2026
| Route | Type | Who qualifies | What it is worth | Status | Source |
|---|---|---|---|---|---|
| Annual Investment Allowance | Tax relief | Any business paying tax on profits that buys plant and machinery | 100% deducted from taxable profits in year one, up to £1m a year | Open | gov.uk |
| Full expensing and 50% first-year allowance | Tax relief | Companies only | 100% of main-rate plant and 50% of special-rate plant (solar panels, heating, electrical and lighting systems) in year one | Open; made permanent by the Autumn Finance Bill 2023 | gov.uk |
| Business rates exemption for on-site renewable and EV charging plant | Rates relief (England) | Ratepayers in England with plant for on-site renewable generation or storage, or serving EV charging points | The plant is left out of the rateable value | Open until 31 March 2035 | SI 2022/405 |
| Workplace Charging Scheme | Grant | Businesses, charities and public sector organisations, via an OZEV-authorised installer | £500 per socket, up to 75% of costs including VAT, maximum 40 sockets per applicant | Open for installations completed by 31 March 2027 | gov.uk |
| Boiler Upgrade Scheme | Grant | Property owners in England and Wales, business premises and let property included, replacing fossil-fuel heating; MCS-certified installer applies | £7,500 air or ground source heat pump, or £9,000 until March 2027 where heated by oil or LPG with no mains gas; £5,000 biomass; £2,500 air-to-air; up to 45 kWth | Open | gov.uk |
| Smart Export Guarantee | Export payment | Generators in Great Britain up to 5 MW (50 kW micro-CHP) with metered export | A per-kWh rate set by each licensed supplier; Ofgem requires it to be above zero | Open | Ofgem |
| Public Sector Decarbonisation Scheme | Grant | Public sector bodies in England and reserved public services | Capital for decarbonising heat in public buildings | Phase 4 closed to new applications November 2024; funding to 2027/28 confirmed, no new window open when checked | gov.uk |
| Industrial Energy Transformation Fund | Grant | Was: energy-intensive industry in England, Wales and Northern Ireland | n/a | Closed July 2025; no successor fund planned (gov.uk, 25 June 2026) | gov.uk |
| Energy Bills Discount Scheme | Bill discount | Was: non-domestic energy customers | n/a | Ran 1 April 2023 to 31 March 2024; closed | gov.uk |
| Devolved and local support | Advice, loans and local grants | SMEs in Scotland (Business Energy Scotland: free advice and the SME Loan Scheme), Wales (Business Wales and the Development Bank of Wales), Northern Ireland (nibusinessinfo); council rounds via Find a Grant | Varies by scheme and round | Varies; check the live source before planning around it | Linked in the row |
Funding routes for business renewables
100% Annual Investment Allowance (AIA)
Any business paying tax on profits that buys plant and machinery. Solar PV, batteries, EV chargepoints and heat pumps qualify.
- Value
- 100% of the cost deducted from taxable profits in year one, up to £1 million a year.
Companies can add full expensing (100%) on main-rate plant and a 50% first-year allowance on special-rate plant above the cap; gov.uk lists solar panels, heating systems and electrical and lighting systems as special-rate.
Workplace Charging Scheme (WCS)
Businesses, charities and public sector organisations installing EV chargepoints for staff and fleet parking, claimed through an OZEV-authorised installer.
- Value
- £500 per socket for installations completed on or after 1 April 2026, up to 75% of costs including VAT, maximum 40 sockets across all sites.
Final year runs to 31 March 2027 (gov.uk guidance updated 1 April 2026).
Boiler Upgrade Scheme (BUS)
Owners of property in England and Wales, business premises and let property included, replacing fossil-fuel heating with a system up to 45 kWth through an MCS-certified installer.
- Value
- £7,500 air or ground source heat pump, rising to £9,000 until March 2027 where the property is heated by oil or LPG and has no mains gas connection; £5,000 biomass boiler; £2,500 air-to-air heat pump.
One grant per property; the installer applies and commissions within 120 days. Larger commercial heat pumps are funded through capital allowances instead.
Smart Export Guarantee (SEG)
Generators in Great Britain up to 5 MW (50 kW for micro-CHP) with a meter that records export, applying to a licensed supplier.
- Value
- A per-kWh payment for exported electricity. Each supplier sets its own rate, which Ofgem requires to be above zero.
Matters most for sites that export at weekends or overnight. Rates differ between suppliers, so compare export tariffs before you sign.
Business rates exemption for on-site renewables (England)
Ratepayers in England with plant and machinery used for on-site renewable generation or storage, or serving EV charging points.
- Value
- The qualifying plant is left out of the rateable value from 1 April 2022 to 31 March 2035.
Set by the Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2022. Scotland, Wales and Northern Ireland set their own rating rules.
Public Sector Decarbonisation Scheme (PSDS) & Salix
Public sector bodies in England, and reserved public services, applying centrally for capital to decarbonise heat in their buildings.
- Status
- Phase 4 closed to new applications in November 2024. Funding for 2025/26 to 2027/28 is confirmed, but no new application window was open when checked on 30 September 2026.
Delivered by Salix Finance. Not open to private businesses.
Devolved and local support
SMEs in Scotland, Wales and Northern Ireland, and businesses in areas whose councils or combined authorities run decarbonisation rounds.
- Where to look
- Business Energy Scotland (free advice and the SME Loan Scheme); Business Wales and the Development Bank of Wales; nibusinessinfo.co.uk for Northern Ireland; the UK government Find a Grant service for open rounds.
Local rounds open and close within months. This page lists no deadlines; check the live source before planning around a grant.
Funding questions, answered
Who qualifies for energy grants?
It depends on the route. The Boiler Upgrade Scheme needs a property owner in England or Wales replacing fossil-fuel heating with a system up to 45 kWth through an MCS-certified installer. The Workplace Charging Scheme is for businesses, charities and public sector organisations installing sockets for staff and fleet parking through an OZEV-authorised installer. The Public Sector Decarbonisation Scheme is for public bodies only. The tax reliefs need no application beyond your tax return.
What types of grants are available for businesses in the UK?
Four kinds of support, only one of them a grant in the everyday sense. Cash grants: the Workplace Charging Scheme and the Boiler Upgrade Scheme. Tax treatment: the Annual Investment Allowance, full expensing and the 50% first-year allowance, and in England the business-rates exemption for on-site renewable plant. Export payments: the Smart Export Guarantee. Advice and loans: Business Energy Scotland, Business Wales and the Development Bank of Wales, nibusinessinfo in Northern Ireland, and council rounds on Find a Grant.
Is there any help for small businesses with energy bills?
Not through a discount scheme. The Energy Bills Discount Scheme ran from 1 April 2023 to 31 March 2024 and is closed; we found no open replacement on gov.uk on 30 September 2026. What remains cuts the units you buy or the tax you pay rather than the unit price: efficiency measures with the allowances above, on-site generation, and the free advice services in the devolved nations.
Can a business get a grant for a heat pump?
Yes, if the property qualifies. The Boiler Upgrade Scheme pays £7,500 towards an air or ground source heat pump (£2,500 air-to-air) up to 45 kWth for a property you own in England or Wales, business premises included, where it replaces fossil-fuel heating, or £9,000 until March 2027 where the property runs on oil or LPG with no mains gas. The MCS-certified installer applies and commissions within 120 days. Larger systems are funded through the capital allowances above; public bodies through the Public Sector Decarbonisation Scheme when a window opens.
Sources and last checked
Every figure on this page was checked against the source listed on 30 September 2026. Schemes change; the official page is the authority if the two disagree.
- Annual Investment Allowance and full expensing and the 50% first-year allowance, gov.uk
- Capital allowance rates and pools and Corporation Tax rates, gov.uk
- SI 2022/405: business rates and renewable or EV charging plant (England), legislation.gov.uk, made 29 March 2022
- Workplace Charging Scheme: installer guidance, gov.uk, updated 1 April 2026
- Boiler Upgrade Scheme: what you can get and eligibility, gov.uk
- Smart Export Guarantee and Renewable Energy Guarantees of Origin, Ofgem
- Public Sector Decarbonisation Scheme (13 March 2025) and Industrial Energy Transformation Fund (25 June 2026), gov.uk
- Energy Bills Discount Scheme, gov.uk, withdrawn 10 April 2024
- Business Energy Scotland, Business Wales, nibusinessinfo.co.uk and Find a Grant