Here at Commercial Solar Company, we’re passionate about helping UK commercial building owners, local authorities, and landlords harness the power of solar energy.
If you’re considering a solar panel installation for your commercial property, rising energy costs and the drive towards net-zero emissions make 2025 the perfect time to act.
Our comprehensive guide to commercial solar panel grants provides expert insights into funding options, eligibility, and how we can help you save money while boosting sustainability.
Why Choose Solar for Your Commercial Property?
At Commercial Solar Company, we’ve seen firsthand how solar photovoltaic (PV) systems transform businesses. Installing solar panels can cut electricity bills by up to 70%, saving small to medium-sized businesses £5,000–£12,000 annually on 20kW–50kW commercial solar systems.
You’ll generate your own electricity, reducing reliance on the National Grid and shielding your operations from unpredictable energy prices.
Solar is also a low-carbon solution, aligning with carbon reduction targets and appealing to eco-conscious customers.
Properties with solar installations often see higher rental incomes and resale values, and pairing panels with battery storage ensures backup power during outages for operational resilience.
Exploring Commercial Solar Panel Grants in the UK
While no dedicated government grants exist solely for commercial solar installations, we at Commercial Solar Company guide our clients through a range of funding schemes, incentives, and tax reliefs to make solar affordable.
Here’s what’s available in 2025.
UK Shared Prosperity Fund (UKSPF) Low Carbon Project
The UKSPF Low Carbon Project is a key opportunity, offering up to 75% funding for solar installations to help businesses cut carbon emissions.
Eligible small to medium-sized enterprises (SMEs), for example, solar for the hospitality sector in certain regions, can secure up to £20,000, though funding varies by local authority.
We assist with the application process, which involves a Business Energy Audit, three quotes from MCS-accredited installers (like us), and a formal submission that may take three months to process.
Smart Export Guarantee (SEG)
The Smart Export Guarantee lets you earn money by selling surplus electricity back to the grid. Any business with a solar PV system, battery storage, and a smart meter qualifies.
SEG rates range from 1p to 30p per kWh, averaging 10.8p, potentially earning £165–£1,020 annually depending on system size. Our team helps you compare tariffs from SEG licensees to maximise returns, and you don’t need to use your current electricity supplier.
Zero VAT on Solar and Battery Storage
Since April 2022, the UK government has applied 0% VAT on solar panels and energy-saving materials, extended to standalone battery storage in February 2024.
This applies to all UK businesses, saving up to £2,850 on a 4kW system with no application needed—the discount is automatic at purchase. We ensure your installation qualifies for this relief.
Local Authority Grants
Many local councils offer regional funding for renewable energy projects, particularly for solar for schools, SMEs, charities, and community organisations.
For example, The Wakefield district has seen an impressive investment of over £230,000 in local projects through a regional funding scheme.
This initiative offers grants to foster greener, cleaner, and healthier communities, empowering local groups to drive meaningful change.
For instance, projects might include urban green spaces, clean energy solutions, or community wellness programs.
By tapping into such funding, Wakefield showcases how targeted support can transform neighborhoods for the bette.
Eligibility and application processes vary by region, often requiring an energy audit and MCS-accredited installers. We’ll connect you with the right local schemes.
Public Sector Decarbonisation Scheme (PSDS)
The PSDS provides grants for public sector buildings to decarbonise, including solar panels and battery storage, with up to £940 million available through 2027/2028.
We assist eligible organisations in England with crafting compliant project proposals to access this funding.
Boosting Efficiency with Battery Storage
At Commercial Solar Company, we recommend pairing solar panels with battery storage to store excess electricity for use during evenings or cloudy days.
Commercial battery systems cost £5,000–£8,000 but save around 14p per unit of stored electricity. They reduce grid reliance, provide backup power, and optimise SEG earnings by storing energy for peak tariff periods.
Batteries qualify for 0% VAT and some local grants, and we’ll ensure your system maximises these benefits.
Who Qualifies for Commercial Solar Grants?
Eligibility depends on the funding scheme but typically includes SMEs, charities, public sector organisations, or community buildings.
Many business types can apply, such as solar panels for hospitality, data centres, agricultural business and more.
Your location determines available funding, as many schemes are region-specific.
Most require a professional energy audit and MCS-accredited installers like us, plus compliance with grid connection and regulatory standards. We guide you through these requirements to ensure eligibility.
How We Help You Apply for Grants
Applying for solar funding can be daunting, but Commercial Solar Company makes it straightforward. We start by researching national and local funding options tailored to your property.
Our team arranges a professional energy audit to assess your solar potential, then secures three quotes from our MCS-accredited installers.
We assist with submitting detailed applications, including energy savings projections, and track approvals, which may take up to three months for schemes like UKSPF.
Once approved, we handle the installation and help you claim reimbursements, such as 40% of costs for some UKSPF grants.
Synonym: solar panel funding application process.
Costs and Returns on Your Solar Investment
An average commercial solar PV system costs £16,000–£70,000, depending on size (20kW–50kW) and complexity.
Panels and inverters account for 60–70% of costs, with installation varying based on roof needs. Battery storage adds £5,000–£12,000, and maintenance runs ££200 – £1,000 annually (or free if self-maintained).
With grants, SEG, and our expertise, businesses achieve a 16–45% return on investment (ROI), with payback periods of 4–6 years.
Navigating Planning Permissions
Most commercial solar installations are permitted development, requiring no planning permission if arrays are under 9m², installed over 5m from boundaries, less than 4m high, and not visible from highways in conservation areas.
Larger systems may need permission, and we handle all regulatory compliance for you.
Tailored Advice for Landlords and Local Authorities
For commercial landlords, solar panels increase property value and attract sustainability-focused tenants.
We can arrange Power Purchase Agreements (PPAs), where a third party funds and owns the system, selling you electricity at a reduced rate with no upfront costs.
For local authorities, we leverage PSDS finance options to decarbonise public buildings, aligning with net-zero goals and showcasing leadership in sustainability.
Why Choose Commercial Solar Company?
As MCS-accredited installers, we guarantee quality and grant eligibility.
We provide detailed quotes with robust warranties (25 years for panels, 5–15 years for inverters) and ensure compliance with grid connection requirements.
Our clients trust us for our expertise, verified by TrustMark and HIES reviews. Let us handle every step, from funding applications to installation.
The Future of Solar Funding in the UK
In December 2024, reports hinted at expanded solar subsidies, with details expected in Spring 2025.
Energy Secretary Ed Miliband’s vision for a “UK solar rooftop revolution” signals stronger support for commercial installations, especially for new builds. We keep you informed through GOV.UK and local council updates.
Start Your Solar Journey with Us
At Commercial Solar Company, we believe 2025 is the ideal year to invest in commercial solar energy. With UKSPF, 0% VAT, SEG, and our tailored support, you can slash upfront costs and achieve rapid ROI.
Adding battery storage maximises savings and resilience. Contact us for a free energy audit, explore funding options with your local council, or request a quote from our MCS-accredited team to power your business sustainably.
FAQs
Are there specific grants for commercial solar panels?
No dedicated grants exist, but UKSPF and local authority schemes can cover up to 75% of costs with our guidance.
Can battery storage be funded?
Yes, batteries qualify for 0% VAT and some local grants, though not typically under ECO4.
How long do commercial solar panels last?
Panels last over 25 years, with inverters replaced after 12–15 years, ensuring long-term value.
Final Thoughts
Commercial solar systems are more than just larger versions of residential setups—they’re strategic investments requiring specialised expertise and tailored planning. At The Commercial Solar Company, we’re leading the charge in helping UK businesses tap into the transformative power of solar energy, supported by available solar grants.
Whether you’re aiming to cut energy costs, shrink your carbon footprint, or secure long-term stability, our team is here to guide you. We also assist businesses in accessing solar grants, which can significantly reduce installation costs and accelerate your return on investment.
Reach out today for a free consultation and learn how commercial solar, paired with grant opportunities, can elevate your business.
