# Grants and funding for commercial solar in the UK

Most UK businesses fund commercial solar through a Power Purchase Agreement (no upfront cost), hire purchase, leasing or outright purchase — often supported by capital allowances when you own the system. Dedicated grants are limited and change over time, so funding is usually the main route.

## Funding beats waiting for grants

Broad grants for commercial solar are limited and come and go, so relying on one can mean missing out on savings now. The established routes — PPA, hire purchase, leasing and outright purchase — let you proceed today. Our funding options page compares them.

## The role of capital allowances

If you own the system (outright or via hire purchase), you may claim capital allowances such as the Annual Investment Allowance or full expensing, effectively reducing the net cost. Your accountant can confirm what applies.

## Where grants might fit

Occasional local or sector-specific schemes appear, sometimes tied to net-zero or regeneration funding. If one is available and relevant, it can complement your chosen funding route rather than replace it.

## Frequently asked questions

**Is there a government grant for commercial solar?**

Broad, ongoing grants are limited and change over time. Most businesses fund solar through a PPA, hire purchase, lease or purchase, with capital allowances often available when you own the system.

**What’s the cheapest way to get solar with no capital?**

A PPA requires no upfront cost at all — the provider funds everything and you pay for the power at a rate below the grid. If you prefer to own the asset, hire purchase spreads the cost while keeping allowances in play.

## Sources & further reading

- [GOV.UK — Business finance and support finder](https://www.gov.uk/business-finance-support)
- [Ofgem — environmental & social schemes](https://www.ofgem.gov.uk)

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Source: [Grants and funding for commercial solar in the UK](https://ppafunding.com/guides/grants-and-funding-for-commercial-solar) · Author: PPA Funding team · Updated: 2026-07-30

PPA Funding is an independent introducer operated by DVC Group Ltd (Companies House 10462808), Shrewsbury — not the installer or the funder. The service is free to use; a commission may be earned from partner funders at no extra cost. Content is educational and is not financial or tax advice.