Solar Grants For Businesses

As businesses look for innovative ways to save money and uphold sustainability standards, renewable energy continues to be a viable option as governments around the world need to slash the rate of carbon emissions.

That is why it’s essential that commercial entities are aware of the solar panel business grants available in the UK which can provide organisations with financial assistance when incorporating solar panels into their operations.

With these grants, businesses may see cost savings on their energy bills as well as other benefits from investing in renewable energy.

Keep reading to learn more about the types of solar panel grants available for businesses, what they are and how you can apply for them!

Solar funding for commercial companies man
Solar panel funding installer holding solar panels

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Apply today to see if your Restuarant qualifies for free solar panel funding or elidable for solar incentives via government schemes or solar funding companies

Find solar funding options today and reduce your energy costs with our comprehensive solar solutions. Explore flexible solar finance options, including grants, loans, and PPAs, and discover the path to sustainable savings. Contact us today to explore your solar eligibility and start saving.

Available Solar panel Grants for businesses UK 2023

solar grants for businesses

Below will be an updated list of solar power grants for businesses located in the UK (Updated – 01/02/2023)

Industrial Energy Transformation Fund (IETF) Government Grant

Start and end date10 October 2022 to 17 February 2023

Available too – England, Northern Ireland and Welsh businesses only

If your business is situated in Scotland, you can benefit from the Scottish Industrial Energy Transformation Fund (SIETF) to help with investments and modernization. Don’t miss out on this amazing opportunity – simply contact IETF@gov.scot for more information!

Type of Funding – The government has allocated £70 million in a grant fund to finance the engineering studies, feasibility assessments and deployment of industrial energy efficiency and deep decarbonisation projects.

How much in business Grants is available –

Energy efficiency deployment projects – £100,000 minimum for threshold & £14 million for maximum threshold per project.

Deep decarbonisation deployment projects – £100,000 minimum for threshold & & £30 million for maximum threshold per project.

Engineering studies£50,000 (total eligible cost) minimum for threshold & £14 million for maximum threshold per project.

Feasibility studies£30,000 (total eligible cost) minimum for threshold & £7 million for maximum threshold per project.

Grant available for businesses such as – Mining and quarrying

Manufacturing, Recovery and recycling of materials, Data centre

How to apply For an IETF business grant

  • read the guidance
  • Get an in-depth, comprehensive look at the IETF application form by watching our step-by-step video tutorial.
  • Ensure to submit the application form in its entirety by 3 PM, Friday, February 17th of 2023.
solar grant for businesses in the uk

What are solar panel grants?

Business solar panel grants can be claimed via government-funded renewable energy grants designed to help businesses make their operations more sustainable.

Solar panel grants can help pay for the cost of purchasing, installing and maintaining solar panels, reducing the burden of investing in renewable energy.

Solar power grants can also be used to cover additional expenses such as transport and installation fees. Solar panel grants for businesses can be a great way to increase savings and lower energy bills.

 

Do I have to pay back the Solar grant?

No, Solar grants do not have to be paid back. Solar panel grants are generally provided as one-time financial assistance and the money does not need to be paid back. 

Solar grants are awarded on a first-come, first-served basis and are subject to availability.

Different Types of Solar panel Grants

There are many different types of solar grants available in the UK, including:

Government solar panel Grants: company solar panel grants are available from the government, which can provide funding assistance to commercial entities looking to incorporate solar panels into their operations.

Government Grant incentives tend to change from time to time and we will keep you updated at the top of this page on what solar grants are available for businesses in the UK 

Energy Supplier solar grants: Grants for businesses are also available from energy suppliers, which can provide renewable energy incentives to commercial entities looking to invest in solar panels.

Local Community Grants: Solar panel grants for businesses are also available from local authorities and other community initiatives, which can provide additional financial assistance to commercial entities looking to invest in solar panels.

 

Benefits of a solar grant

The benefits of Solar grants are numerous. Solar grants for businesses can help reduce electricity bills and provide renewable energy which is both sustainable and cost-effective.

Solar grants can also help businesses meet environmental sustainability goals and reduce their carbon footprint.

business solar power grants may also help qualify a business for additional government incentives.

 

Here are 5 Benefits-

Cost Reduction: Solar power grants help businesses reduce the cost of solar panel installation and maintenance.

Environmental Impact: Solar panel grants can help businesses reduce their carbon footprint and contribute to environmental sustainability goals.

Tax Breaks: Solar grants may help businesses qualify for additional tax breaks and incentives.

Energy independence: Grants can help businesses become independent from traditional energy sources.

Financial stability: Solar grants can provide long-term financial stability through lower energy bills.

Example of a company taking out a solar grant

In order to lower their energy expenses and reduce their environmental footprint, a UK-based manufacturing company has investigated various solutions. Subsequently, they applied for a government grant in order to install solar panels – the most cost-efficient option determined by their research.

Before taking any action, the company initially conducted an energy audit to assess its current energy usage and locate potential regions for efficiency.

The results unveiled that a great portion of their utilized electricity was devoted primarily to lighting and production operations.

Subsequently, the business engages with a regional solar panel installer to make a unique system that will serve their electricity requirements.

The installation team evaluates variables such as the structure’s size, roof positioning and angle of orientation, shade levels and sun exposure for optimal results.

The company applied for government funding to offset a portion of the expenses associated with its solar panel project.

This involved sharing detailed information on the firm, its design plan, and projected energy savings. After several weeks of review, they were granted approval and quickly moved forward with the installation of their new solar panels!

After a few weeks of meticulous installation, the solar panels are strategically placed, wired up, and operational.

This new system produces more energy than what’s needed each day within the company – this surplus is then released back onto the power grid which adds to their revenue stream!

By switching to solar, the company will save a great deal on their energy bills. This is because solar panels create clean power that won’t be interrupted in cases of outages or price hikes.

 

Let’s explore further by taking an in-depth look at the financial details:

  • The initial cost of the solar panel system: £100,000
  • The amount covered by the government grant: £40,000
  • Out-of-pocket cost for the company: £60,000
  • Estimated energy savings per year: £20,000
  • Estimated additional income from excess energy fed back into the grid: £5,000

 

Within the initial year, the company saw tremendous savings with their energy bills amounting to £20,000. On top of that, they earned a staggering additional sum of £5,000 by feeding excess energy back into the grid!

In the next 20 years, the company can look forward to saving a whopping £400,000 on their energy bills and earning an additional £100,000 from excess power.

Moreover, with improved efficiency in terms of energy usage and a decline in carbon emissions comes immense satisfaction that they are contributing to a more sustainable future.

Thanks to the government grant, transitioning to solar energy has become much more affordable and attainable. This allows our company to reap all of the benefits that come with utilizing solar energy.

Other solar panel funding options for businesses in the UK

Another solar panel funding option for businesses in the UK other than a solar grant would be a Power Purchase Agreement.

This allows business owners to buy solar energy at lower rates, helping them save money in the long run.

How it works: Solar panel installers provide businesses with the equipment, installation and maintenance of the solar panel system for free.

The business then signs an agreement to purchase solar energy at a discounted rate for a pre-determined amount of time, typically anywhere from 20 to 30 years.

This Solar power purchase agreement allows businesses to benefit from solar energy without having to pay upfront for equipment and installation.

Here is an example:

To save money and reduce its carbon footprint, a manufacturing company has sensibly entered into a Power Purchase Agreement (PPA) with an established solar developer to obtain green-generated electricity for their industrial facility.

Before, the company had been forking out £0.12 per kilowatt-hour (kWh) of electricity that it purchased from the grid.

Under the terms of the PPA, a manufacturing company has committed to purchase solar-generated electricity at an agreed price point of £0.10 per kWh.

By entering into a Power Purchase Agreement (PPA), the company can save £40,000 each year – an impressive 20% reduction in their electricity expenditure of 2 million kWh.

The manufacturing company can thus save a total of £40,000 every year as a result.

These savings can be used to invest in other areas of the business, improve operations or increase profitability.

Here’s a breakdown of the finances for the manufacturing company taking out a Power Purchase Agreement (PPA):

Before PPA:

  • The company was paying £0.12 per kilowatt-hour (kWh) for electricity from the grid.
  • They used 2 million kWh of electricity per year, which equates to an annual cost of £240,000 for electricity.

After PPA:

  • The company enters into a PPA with a solar developer to purchase solar-generated electricity for £0.10 per kWh.
  • They continue to use 2 million kWh of electricity per year, but now their annual cost for electricity drops to £200,000.

Savings:

  • The company saves £40,000 annually by entering into a PPA and purchasing electricity at a lower price.

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