Grants and funding for solar panels for manufacturers
UK grants, tax reliefs, and finance routes for solar panels for manufacturers. Updated for 2026.
Funding routes for this sector
Industrial Energy Transformation Fund (IETF)
UK industrial sites in eligible SIC codes, which covers most manufacturing. Grants for energy efficiency, deep decarbonisation, and feasibility studies.
- Value
- Typically £100,000 to several million per project at a 30 to 50 percent intervention rate.
Operated by DESNZ through periodic competition windows. Aimed at larger projects rather than sub-100 kW installs, and often combined with private finance for the balance. Check the current window and eligibility before relying on it.
Plant & Machinery Capital Allowances (Annual Investment Allowance)
All UK businesses paying corporation tax. Solar PV qualifies as plant and machinery, and the Annual Investment Allowance covers the first £1m of qualifying expenditure at 100 percent.
- Value
- Up to roughly 25 percent effective tax saving in year one for a limited company.
Most manufacturing installs are fully expensed in year one under the AIA. Expenditure above the £1m AIA cap may attract a first-year allowance depending on prevailing policy, so confirm the current rate with your accountant.
Smart Export Guarantee (SEG)
All MCS-certified PV installs up to 5 MW. Larger licensed suppliers are obliged to offer an export tariff.
- Value
- Supplier-set, with typical export tariffs in the region of 4 to 15p/kWh.
The tariff is set by the supplier, so it pays to shop around. For manufacturing sites the priority is self-consumption; export is the secondary value stream.
Climate Change Agreements (CCAs)
Energy-intensive manufacturing sectors. Provides a Climate Change Levy discount in exchange for energy-efficiency commitments.
- Value
- Substantial CCL reductions on electricity and gas for eligible sectors.
On-site PV reduces metered grid consumption, which directly improves CCA performance against target. Check whether your sector and site are covered by the current scheme.