Business Solar Grants
Latest: Test Valley Borough Council have launched a new Solar Grant for commercial premises... (22 May 2025)
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Commercial Solar Grants for Business
Installing solar on your commercial property makes financial sense, but did you know you can significantly reduce upfront costs through business solar grants?
These incentives can come from government departments, local authorities, regional development funds, and even industry initiatives. They’re designed to accelerate solar adoption among businesses, helping you benefit from lower energy bills, improved ROI, and enhanced sustainability credentials.
Saving
Initial Investment
Reduce upfront expenses with funding that covers a portion of your solar system.
Boosted
Return on Investment
Grants improve your return on investment by lowering capital expenditure.
Stronger
ROI Profiles
Present a stronger ROI profile to lenders and investors, ideal for corporate financing strategies.
ESG
& Net-Zero Goals
Boost your environmental credentials and demonstrate real progress on sustainability.
Current Grants
Business Solar Grant by Test Valley Borough Council
The Test Valley Borough Council Business Solar Grant offers eligible businesses up to £5,000 towards solar panel installation, covering 20% of costs. Funded by the UK Shared Prosperity Fund, it’s designed to accelerate commercial solar adoption across local business parks. Spaces are limited and awarded on a first-come, first-served basis, so early application is essential.
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Great British Energy Community Fund
The Great British Energy Community Fund (formerly the Community Energy Fund) provides grants for community-led clean energy projects, including rooftop solar, battery storage, EV chargers, and rural heat networks, with funding administered regionally through Local Net Zero Hubs. It offers up to £40,000 for feasibility studies and up to £100,000 for development-phase support, helping prepare projects to become investment-ready. The scheme prioritises community ownership and local benefit, supporting councils, charities, co‑ops, and social enterprises across England looking to deliver clean energy.
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Annual Investment Allowance (AIA)
The Annual Investment Allowance (AIA) isn’t a grant, but it can significantly reduce the cost of going solar by allowing businesses to deduct the full value of their solar PV investment from taxable profits. This can lead to a substantial corporation tax saving, effectively funding part of the system. It’s one of the most straightforward and generous ways to support commercial solar investment through the tax system.
Contact Absolar for more support
Where Do Commercial Solar Grants Come From?
There are several funding sources available to help UK businesses go solar. Here's where to look:
1. National Government Schemes
The UK government supports solar through a range of national programmes focused on clean energy, net zero, and industrial decarbonisation. These are especially active in the public sector, education, and industrial estates.
2. Local Authority & Regional Funding
Many local councils and regional bodies offer dedicated grants for solar and wider energy efficiency upgrades. These schemes are often time-limited and tailored to support local business growth and sustainability.
3. Utility & Industry-Led Programmes
Some energy companies and trade bodies offer funding, rebates, or co-investment options to encourage renewable adoption among commercial customers.
4. Innovative Green Finance Funds
Emerging financial models blend grants, low-interest loans, and revenue-sharing agreements, especially for SMEs, commercial landlords, and multi-tenant sites. These make solar more accessible without high upfront costs.
How Commercial Solar Grants Work
Understanding the grant process helps you plan your solar investment with confidence:
1. Remote Solar Assessment
The first step is a remote solar feasibility assessment. This evaluates whether your site qualifies based on factors like roof size, energy usage, and estimated solar generation potential.
2. Grant Amounts & Structure
Grants are typically offered as capital contributions, covering 10–40% of the total installation cost. The exact amount and structure depend on the scheme and your business location.
3. Application Process
You'll need to submit:
- Recent energy usage data
- A proposed system design
- Cost estimates (often from multiple installers)
- A simple sustainability or impact plan
Support is usually available from grant administrators or delivery partners like Absolar to guide you through the process.
4. Grant Award & Installation
If approved, the grant is either paid directly to you or reimbursed after installation. In most cases, you'll pay the installer upfront, then claim back the grant based on proof of completion.
5. Compliance & Reporting
After installation, you’ll need to confirm project delivery through photos, invoices, and commissioning certificates. Some schemes require ongoing energy performance reporting to track carbon savings.
How Absolar Helps You Secure Grants
We simply the journey from eligibility to funding, and here's how we support your success:
1. AI-Powered Remote Solar Assessment
Our advanced, AI-driven analysis evaluates your building’s solar potential, estimating generation capacity, system size, and return on investment – all without needing a site visit.
2. Grant Mapping & Eligibility Check
We identify the most relevant funding opportunities – whether national, regional, or industry-specific – and assess your eligibility and potential grant values.
3. Application Preparation
Our team handles the paperwork for you. We compile and prepare all necessary technical documents, cost breakdowns, energy data, and supporting evidence for a strong, compliant application.
4. End-to-End Grant Support & Compliance
From application submission to liaising with grant administrators and preparing final compliance reports, Absolar manages the full process, ensuring you stay on track and in line with funding requirements.
Whitepaper - Unlocking the Potential of Commercial Solar
Our latest whitepaper is designed to help businesses and commercial landlords navigate the opportunities and challenges of solar energy adoption. This in-depth guide explores the key steps to developing successful commercial solar projects, whether you own a single property or manage a diverse portfolio. Drawing on our real-world experience, the whitepaper covers everything from assessing rooftop suitability to understanding performance guarantees and compliance requirements.
Crucially, it also breaks down the latest financing options available, including power purchase agreements (PPAs), capital investment models, and landlord-tenant cost-sharing strategies. For commercial landlords, we offer practical guidance on how to structure solar projects that align with lease terms and add long-term value to your properties. Whether you're looking to reduce operational costs, meet ESG targets, or attract sustainability-minded tenants, this whitepaper is your essential roadmap to making solar work for your business.
Recent Projects
Industrial | Warehouse
With a footprint of over 25,000 square metre, the Draper Tools building in North Baddesley is a large scale industrial warehouse, supplying quality trade, professional and DIY tools. The building has a span of over 210 metres, with multiple roof sections and numerous skylights, which need to be carefully considered as part of the solar system design to 1) ensure health and safety during the installation process and 2) to optimise solar energy generation.
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Manufacturing | Industrial
Located in Newport, Isle of Wight, Diametric specialises in precision engineering and occupies a two-storey industrial unit. The building is constructed with a metal trapezoidal roof. Their energy consumption profile peaks during weekdays from 8 am to 5 pm. As a client of NatWest, Diametric approached Absolar to find solutions to reduce energy costs and carbon emissions.
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Multi-tenanted office building
4 Benham is situated in the Benham Campus of the University of Southampton Science Park. It is a three-floor, multi-tenanted property with a standing seam Kalzip roof. The property experiences high energy consumption during office hours due to the research labs and offices situated inside the building.
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