Troo | Blog & Resources

Solar panel grants and government funding for businesses explained

Written by Michael Potts | Aug 6, 2026, 9:00:00 AM

Solar panel funding is available for businesses, but there is no single nationwide grant that every SME can claim.

Support isn't automatic. Funding varies by location, business size, sector and project, so knowing where to look is just as important as knowing what you're eligible for.

The challenge is finding the time to navigate funding options and develop the expertise needed while keeping your business running. We can help.

In this article:

    • Learn what types of funding schemes are available for business solar panels.
    • Understand whether your business may be eligible to unlock a grant or tax incentive.
    • Discover alternative solutions if grants aren’t available to you.

What funding and finance is available for business solar panels? 

There are several ways businesses can reduce the cost of installing solar panels or spread the costs, including government grants, tax incentives and finance.

Solar energy grants: These may come in the form of national government schemes designed to encourage renewable technology installations or local authority funding.

Tax incentives: Businesses may be able to reduce the cost of installing solar panels through tax incentives, including capital allowances.

Green loans: Government-backed or commercial green finance allows businesses to spread the upfront cost over time while using savings on energy bills to help offset repayments.

Asset finance: Businesses can use asset finance options such as leasing or hire purchase to spread the cost of solar equipment and installation, reducing the upfront capital required. 

Power Purchase Agreements (PPAs): A PPA can allow a business to access solar-generated electricity without paying the full upfront cost of installing the system. A third party typically funds, owns and operates the solar installation, while the business agrees to buy the electricity generated at an agreed price for a set period.

Can my business get a solar panel grant?

Not every SME automatically qualifies for solar panel funding. Eligibility for specific schemes and incentives usually depends on several of the following factors:

  • Business size
  • Location
  • Sector or industry
  • Property ownership or tenancy
  • Project size
  • Energy usage
  • Whether the project is new or replacing existing equipment

What can solar funding help businesses pay for?

Installing solar isn’t as simple as strapping a panel to your roof and plugging it in. There are several costs associated with projects that you should consider.

Depending on the scheme, funding may contribute towards:

  • Solar PV panels
  • Installation and associated works
  • Electrical infrastructure
  • Energy-efficiency improvements linked to the project
  • Potentially related technologies where eligible

Where can businesses find solar panel grants and funding?

There is no single website listing every solar funding opportunity available to UK businesses. Grants, tax incentives and finance options are administered by different organisations and can change over time.

Depending on your business and location, it may be worth checking:

    • Local authorities: Many councils offer grants or low-carbon funding schemes for eligible businesses.
    • Combined authorities and regional growth hubs: Local enterprise partnerships and growth hubs often promote regional business support and renewable energy funding.
    • Government departments: National schemes and tax incentives are published through official government guidance.
    • The British Business Bank and green finance providers: Some businesses may be eligible for government-backed finance or specialist green lending.
    • Industry bodies and trade associations: Sector-specific organisations sometimes highlight funding opportunities relevant to their members.

Funding windows can open and close quickly, eligibility criteria change, and some schemes require applications to be submitted before work begins. Checking the rules carefully before committing to a project is essential.

Alternatively, Troo can help you explore renewable energy solutions and appropriate funding sources.

How do I apply for solar panel funding?

The exact process to unlocking funding depends on the scheme, but most follow a similar journey:

  1. Assess whether the site is suitable for solar.
  2. Understand current energy consumption and costs.
  3. Identify relevant funding schemes.
  4. Check eligibility and application deadlines.
  5. Obtain quotes and technical information.
  6. Submit the application before committing to the project, where required.
  7. Install the system and claim funding according to the scheme's rules.

Is installing solar panels worth it without funding?

Every business is different. Even without grants or incentives, solar panels may still represent a strong commercial investment for many businesses, although the upfront costs may be higher.

This could delay the return on investment from renewable projects, but it does not necessarily mean the investment won't deliver a worthwhile return.

The financial viability of solar panels depends on factors such as:

  • Current electricity costs
  • On-site energy consumption
  • Roof or land suitability
  • System size
  • Installation costs
  • How much generated electricity the business can use
  • Potential export income
  • Available tax relief or finance

External funding could be part of your business case, but simply having access to funding shouldn’t be the sole reason to invest.

How we can help

It’s tricky to know where to start with renewable energy for business. The boom feels new and overwhelming. There’s a lot of noise. You can’t separate the truth from myths and rumours.

We get it. We can support you.

Troo exists to help businesses like yours make sense of their energy needs, simplify complex information and make smart decisions that lead to real change and reduced costs.

We are not here to sell you a quick fix. We're here to understand what matters to you, offer clear advice, and take ownership of the hard parts, so energy becomes one less thing to worry about.

Book a free energy health check today to explore renewable energy options for your business.