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, though in 2026 most of that help comes through tax relief and targeted schemes rather than open cash grants. The single biggest lever is not a grant at all: 100% Annual Investment Allowance lets a company deduct the full cost of solar, batteries, heat pumps and EV chargers from taxable profit in year one, recovering roughly a quarter of the cost, with VAT reclaimable for VAT-registered businesses on top. Layered on that are the Workplace Charging Scheme for EV, the Smart Export Guarantee for solar export, and the Public Sector Decarbonisation Scheme for public bodies. Below is each route with who it is for and what it is worth. One important caveat: the Boiler Upgrade Scheme is a single-property grant capped at 45 kW thermal - a small owner-occupied business premises can claim its £7,500, but commercial-scale heat pumps are funded through capital allowances and the public-sector schemes instead.
How the funding routes stack
The routes combine. A typical owned project uses AIA on the whole capex, claims the Workplace Charging Scheme on any EV sockets, and sells surplus solar under the Smart Export Guarantee. A public body layers PSDS or Salix funding with those allowances. If capital is the barrier rather than the return, a Power Purchase Agreement sidesteps grants entirely by removing the capex, and asset finance spreads the cost so the project is cash-flow positive from month one. We map the right combination for your specific measures and business type, and prepare the paperwork, as part of the free assessment.
Funding routes for business renewables
100% Annual Investment Allowance (AIA)
UK businesses paying corporation tax. Solar PV, batteries, EV charge points and heat pumps qualify as plant and machinery.
- Value
- Full capex deducted from taxable profit in year one, under AIA up to the £1m cap.
The primary lever for owned renewable kit. A profitable company recovers roughly 25% of the cost through tax. VAT is separately reclaimable for VAT-registered businesses.
Workplace Charging Scheme (WCS)
Businesses, charities and public bodies installing EV chargepoints for staff and fleet use, via OZEV-approved installers.
- Value
- £500 per socket, up to 40 sockets.
Stackable across sites. Chargepoints and installer must be OZEV-approved. Pairs with on-site solar to charge on self-generated power.
Smart Export Guarantee (SEG)
MCS-certified generation up to 5 MW exporting surplus to the grid.
- Value
- Typically 4-15p/kWh depending on tariff and supplier.
Meaningful for sites that export at weekends or overnight (offices, retail, schools). A competitive SEG tariff improves the solar business case.
Industrial Energy Transformation Fund (IETF) - closed
Was open to energy-intensive manufacturing and industrial sites in England, Wales and Northern Ireland.
- Status
- Closed to new applications since July 2025. Awarded projects remain funded.
The Industrial Energy Transformation Fund closed to new applications in July 2025 and, following the Spending Review, will not be extended. No successor fund is planned, so energy-intensive sites now fund process and heat decarbonisation through capital allowances, PPA funding or asset finance.
Public Sector Decarbonisation Scheme (PSDS) & Salix
Public-sector bodies, schools, NHS, colleges and councils.
- Value
- Grant funding and interest-free loans covering heat pumps, solar and wider decarbonisation.
The main route for public buildings, and the principal commercial heat-pump funding line, applied for centrally by the body.
Regional & combined-authority business grants
Varies by region. GMCA, WMCA, WYCA, LCRCA and Growth Hubs periodically run SME decarbonisation grant rounds.
- Value
- Typically £1,000-£50,000 per business, sometimes with free audits attached.
Schemes open and close. Worth checking your combined authority or Growth Hub before committing to a route.