Grants & Incentives for Renewable Energy
UK funding opportunities to support your commercial renewable energy investment.
Multiple funding streams are available to UK businesses investing in renewable energy. From government grants to tax incentives, understanding your options can significantly improve project economics. This guide covers the main opportunities available in 2024.
Important Note
Funding schemes change frequently. We recommend contacting us for the latest availability and to discuss which options apply to your project. We can help with applications for most schemes.
Tax Incentives
Tax relief provides guaranteed savings for all UK businesses investing in renewable energy:
Annual Investment Allowance (AIA)
- Benefit: 100% first-year deduction from taxable profits
- Limit: £1,000,000 per year
- Applies to: Solar PV, batteries, EV chargers, heat pumps
- Who qualifies: All UK businesses
Example: A £100,000 solar installation saves £25,000 in corporation tax (at 25% rate) in year one.
Full Expensing (Companies Only)
- Benefit: 100% first-year allowance on qualifying plant and machinery
- Duration: Permanent from April 2023
- Applies to: Main pool assets including solar PV
- Who qualifies: Companies (not sole traders/partnerships)
Full expensing replaced the super-deduction and provides significant tax relief for larger investments.
Enhanced Capital Allowances (Heat Pumps)
- Benefit: 100% first-year allowance
- Applies to: Energy-saving equipment on the Energy Technology List
- Includes: Air and ground source heat pumps
- Who qualifies: All UK businesses
Reduced VAT (5%)
- Benefit: 5% VAT instead of 20% (until March 2027)
- Applies to: Solar panels, batteries, heat pumps, insulation
- Who qualifies: Residential properties and some charitable uses
Note: Standard commercial installations are charged at 20% VAT, but businesses can reclaim this through VAT returns.
EV Charging Grants
Workplace Charging Scheme (WCS)
- Grant amount: Up to £350 per socket
- Maximum sockets: 40 per applicant
- Maximum grant: £14,000
- Who qualifies: Businesses, charities, public sector
- Requirements: Off-street parking, smart charging capability
How we help: We handle the WCS application and ensure your installation meets all requirements. The grant is deducted from your invoice.
EV Infrastructure Grant for Staff and Fleets
- Grant amount: Up to 75% of costs, capped at £15,000 per site
- Applies to: Larger charging infrastructure projects
- Who qualifies: SMEs with staff or fleet parking
- Requirements: Minimum 5 charge points
Local EV Infrastructure (LEVI) Fund
- Total fund: £381 million
- Administered by: Local authorities
- Focus: Public charging infrastructure
- Opportunity: Partnerships with local councils
Contact your local authority about LEVI funding opportunities for public-facing charging.
Public Sector Funding
Salix Finance
- Type: Interest-free loans for public sector
- Who qualifies: Schools, hospitals, universities, councils, public buildings
- Loan terms: Matched to project payback (typically 8-12 years)
- Technologies: Solar PV, LED lighting, heating, insulation
Key benefit: Effectively zero-cost finance with repayments covered by energy savings.
Our experience: We've delivered multiple Salix-funded projects including school solar installations and support organisations through the application process.
Public Sector Decarbonisation Scheme
- Type: Capital grants (not loans)
- Who qualifies: Public sector bodies
- Focus: Heat decarbonisation, building retrofits
- Application: Competitive rounds, typically annual
Grant funding up to 100% for qualifying public sector decarbonisation projects.
Sector-Specific Funding
Agricultural Grants
Farming Investment Fund
- Grant amount: 25-40% of eligible costs
- Minimum grant: £25,000
- Maximum grant: £500,000
- Includes: Solar PV for agricultural buildings
Countryside Stewardship
Additional funding may be available through environmental land management schemes for farms implementing renewable energy.
SME Support
British Business Bank Green Loans
- Type: Government-backed lending
- Available through: Participating banks
- Benefits: Potentially better rates for green investments
Local Enterprise Partnerships
Some LEPs offer grants or loans for business energy efficiency. Check with your local LEP for current schemes in Bedfordshire, Hertfordshire, or Buckinghamshire.
Export and Revenue Schemes
Smart Export Guarantee (SEG)
- What it is: Payment for exported electricity
- Who qualifies: All solar PV installations up to 5MW
- Rates: 3-15p/kWh depending on supplier and tariff
- Requirement: MCS-certified installation (we are MCS certified)
Top tip: Compare SEG tariffs as rates vary significantly between suppliers. We can advise on the best options for your situation.
Power Purchase Agreements (PPAs)
- What it is: Long-term contract to sell electricity
- Benefits: Price certainty, potentially higher than SEG
- Best for: Larger installations (100kW+) with significant export
- Contract length: Typically 5-15 years
Local Authority Schemes
Our service area includes several local authorities with renewable energy support:
Bedfordshire
- Bedford Borough Council: Check for current business energy grants
- Central Bedfordshire: Sustainability initiatives may include business support
- Milton Keynes: MK Green Business Network offers resources
Hertfordshire
- Hertfordshire County Council: Net Zero support for businesses
- District councils: Various schemes - St Albans, Watford, Dacorum
- Hertfordshire LEP: Check for current green business support
Buckinghamshire
- Buckinghamshire Council: Business sustainability programmes
- Buckinghamshire Business First: May offer energy efficiency support
We stay updated on local schemes and can advise which options are currently available in your area.
Funding Summary by Technology
| Technology | Available Funding |
|---|---|
| Solar PV | AIA, Full Expensing, SEG, Salix (public sector), Agricultural grants |
| Battery Storage | AIA, Full Expensing, Salix (public sector) |
| EV Charging | WCS (£350/socket), Infrastructure Grant (75%), LEVI, AIA |
| Heat Pumps | AIA, Enhanced Capital Allowances, Boiler Upgrade Scheme (residential) |
How We Help with Funding
Navigating funding options can be complex. Here's how we support our clients:
Funding Assessment
- Review your eligibility for all schemes
- Calculate potential savings from tax incentives
- Identify maximum available funding
- Factor funding into project ROI analysis
Application Support
- Complete WCS applications
- Prepare Salix documentation
- Provide technical specifications
- Energy modelling for funding requirements
We've helped clients secure hundreds of thousands of pounds in grants and incentives. Our MCS certification ensures your installation qualifies for all relevant schemes.
Maximise Your Funding
Contact us for a free assessment of available grants and incentives for your project.
Get a quote → Call 07944 275171