Business Solar Grants
Find out more about the solar panel grants available for businesses in the UK and how to apply with AR Power's guide.
Installing solar panels for your business can be an ideal way to embrace renewable energy, reduce your carbon footprint, improve energy security and save money on your company’s energy bills. Still, the upfront commercial solar panel costs can be off putting for many business owners.
Thankfully, there are many funding options for solar panels, so companies looking to cut their carbon emissions using solar panels can can find funding and financial support.
Using business solar panel grants for industrial solar PV installations is a great way to reduce the cost of the initial outlay and improve your return on investment. The grant landscape changes regularly and is subject to certain eligibility criteria, but this guide explores the best available grants currently and how you can find the right option for your organisation. All information is correct at time of publication.
Financing Your Solar Panels
There are a wide range of different options when it comes to funding your solar panels, you can either pay for them in full using CapEx, pay monthly over a number of years with Asset Finance, have someone else fund the solar project using a Power Purchase Agreement, or you can get help towards your investment with a business solar grant.
Although there are no specific grants available at present which are just for commercial solar PV systems, there are a number of grants available which can be used to partially fund your solar PV system.
Government grants for solar panels are often given to a finance company to manage such as Salix, or a central authority backed by the government such as the North East and Yorkshire Net Zero Hub. You need to apply to the relevant organisation for funding to help towards your solar PV project.
One thing to bear in mind when considering using funding to partially pay for your solar panels is the amount you stand to receive and the savings you could miss out on while you are waiting for the funding to be approved. Sometimes, companies who are using funding could have saved more on their energy bills than the amount they were going to receive over the time they waited to get approval.
The Process For All Solar Panel Grants In The UK
While every grant is different, the process shown here is a basic overview of what is needed to get a business grant for your solar panels.
If you are using Asset Finance to fund your panels this may hinder the claim process as the grant company will require proof of payment to the solar installation company from your company. When using Asset Finance the finance company pay the installation company, so this may not be possible.
Please check with the company you are applying for the funding with before you proceed with your application. Funding may be available through other industries such as fisheries and agricultural grants and you may be able to combine grants.
There are certain limits that a company can receive in grants in a given financial period you may be asked for the details of any previous grants awarded on your application forms.
You’ll also need to check with the other grant providers to see if you can use the grant in conjunction with other grants.
If you are owned by a parent company, and the grant has eligibility criteria, the statistics for the company as whole will be taken into account with the application.
All grants are to help create and grow, and you will need to demonstrate that you are going to employ more people as a result of what you are doing and you’re going to grow your business. You need to demonstrate that the project you are doing will enable you to grow.
You can get funding for solar panels if your premises is tenanted providing you have more than 10 years left on your lease.
Applying for grants can be straightforward, however some can be really comprehensive.
At AR Power, we are connected to a number of organisations who understand grant eligibility and the application and claim process. We would be happy to connect you with these organisations who will be delighted to help.
Business Solar Grants In The UK
There are many different solar panel grants offered for different businesses throughout the UK. Registered charities and community organisations can get additional funding options, so if your business falls into these categories it is worth contacting your local authority to see what additional grants are available. Some businesses in specific niches, such as SMEs, hotels, research facilities, factories and others can benefit from these grants. Agricultural and farming businesses have their own grant funding system and companies in these niches might be eligible for other sources of funding. Here are some solar panel grants for businesses that are available to organisations throughout the North East and nationwide.
The UK Shared Prosperity Fund (UKSPF)
The UK Shared Prosperity Fund (UKSPF) is government funding offered to UK businesses for a wide range of purposes. Solar panel installation is considered an eligible project for this scheme as are other energy efficiency measures.
To be eligible for a contribution from the fund, you must run a small to medium sized enterprise that has received less than £315,000 in Minimal Financial Assistance subsidy over the last 3 years.
Because the fund is administered through local councils, you will have to check that your premises is based in an area that offers it. You will also have to provide energy bills covering the last 12 months to show how solar panels could benefit your business and the community.
The fund originally ran until March of 2025, but it has been extended to March 31, 2026. To check your business’s eligibility and apply for money from the fund, read the government’s prospectus.
BEST Grant
This grant is available through BEST, the Business Energy Savings Team and is a green initiative funded by the UK Government.
It is available to business owners and organisations in Newcastle Upon Tyne, North Tyneside, Northumberland and Gateshead.
The maximum funding you can receive towards the cost of your clean energy technology installation project is £20,000.
Before you apply, you need to have and Business Energy Audit carried out to highlight measures you can put in place to reduce your carbon output, and for installing solar to be a recommended measure to take. You will then need to acquire 3 quotes from 3 separate companies then apply for your funding.
It will take approximately 1 month to get a decision on your application, once you have been approved, you can appoint the installation company of your choice, have the system installed, then apply for the funding to be sent to you once you have paid for the installation in full.
To find out more or apply online, visit their website.
Northumberland Business Support Scheme
This grant is available to all businesses in Northumberland. Companies can claim up to 40% of the cost of their solar PV project (ex VAT) once the system has been installed. To get this grant, your business has to meet the following conditions:
• Based in Northumberland
• Trading mainly as business to business
• Not in Public, Fisheries or Agricultural sectors
• Trading for more than 12 months
• Have less than 50 full time employees
• Be able to create more full-time employees (growing FTE) or demonstrate that you will safeguard current employees
• Your annual turnover is less than £10.2M and balance sheet less than £5.1M
• Have not exceeded the £200,000 Euros De Minimis in the last three years
• Be able to complete the project by December 2024
Before you apply for the grant money for your solar panels, if the cost of the investment is over £50,000, you need to publicly announce that you have an open tender available for the installation of solar to your business.
The application process and paperwork for this grant is very involved, requiring a lot of information from you as a company. However, you can receive up to 12 hours of support from an independent organisation who can assist you with your application. Find out more at the Northumberland Small Business website.
Get Help Applying For Solar Energy Business Grants
If you need help understanding what eligible costs you could cover using these or any other grants, or require support in applying, AR Power is here for you.
Our team are happy to work with clients who are looking to install solar panels to their business premises, reduce emissions, reach Net-Zero faster and generally increase energy efficiency and sustainability in their organisation.
From start-ups to registered charities and beyond, we’ve worked with a wide range of different organisations over the years, and have the expertise needed to help you get the solar panel installation you need and find funding to help spread the cost.
Contact us today on 0191 4813316 or by emailing sales@arpower.co.uk to get a quote and advice on how to start the funding process.
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