INDUSTRY INSIGHT JUNE 2025: Funding Options for UK Businesses to Install Solar Panels in 2025

As more UK businesses shift towards renewable energy, solar power continues to stand out as a smart investment, helping reduce energy costs, increase energy independence, and lower carbon emissions. However, the upfront cost of installing a solar PV system can still be a significant hurdle. In this article we explore several grants, tax incentives, and finance options available in 2025 to help UK businesses make the switch to solar without breaking the bank.

At SEE Solar, we work closely with businesses to design, deliver, and maintain solar power infrastructure, providing expert advice and end-to-end support to deliver high-quality, future-proof solar solutions. As an MCS Certified Provider, we are ideally suited to help your business secure funding and other income sources, providing the required technical information and quotes in support of your applications.

Annual Investment Allowance (AIA)

The Annual Investment Allowance allows your business to deduct the full cost of eligible capital purchases, including solar panels, from your taxable profits, up to £1 million per year. This could reduce your corporation tax bill and improve the return on investment for your solar scheme. Consult your accountant for information and advice and visit the gov.uk AIA page for more information https://www.gov.uk/capital-allowances/annual-investment-allowance

Green Loans & Commercial Finance

Several banks and finance providers offer low-interest loan packages or asset financing for renewable energy upgrades: We regularly support clients through the application process to secure funding, so be sure to speak to us about how we can help you with your application.

UK Shared Prosperity Fund (UKSPF) 

Some local authorities offer match-funding or direct grants for renewable energy installations through the UK Shared Prosperity Fund (UKSPF). Launched in 2022 the UKSPS replaced the European Structural and Investment Funds (ESIF) and allocated £2.6 billion for investment across the UK. Originally due to conclude in March 2025, the scheme has been extended until March 2026 so it’s not too late to benefit from the scheme, although availability and criteria do vary by region. Check with your local authority or LEP (Local Enterprise Partnership) to find out what is available in your area.

Smart Export Guarantee (SEG)

Once your panels are installed, you can earn money by exporting unused electricity back to the grid. Under the Smart Export Guarantee (SEG), energy suppliers pay you for each kilowatt-hour (kWh) you send to the grid. Launched in 2020 the government backed initiative is available for installations with a capacity of up to 5MW. It’s worth looking for the best deal as in our experience SEG tariffs can vary. More information about SEG is available on the Ofgem website here: https://www.ofgem.gov.uk/environmental-and-social-schemes/smart-export-guarantee-seg

Powering your transition

SEE Solar understand that solar energy is a transformative investment for your business. Contact us to discuss how we can help your business power your transition to net-zero.