The transition to renewable energy has never made more financial sense for UK businesses. Alongside changing technology costs, a growing suite of government-backed financial incentives is helping organisations of all sizes reduce their energy bills, lower their carbon footprint, and future-proof their operations.
Whether you’re considering solar panels, EV charging infrastructure or a greener heating system, there may be grants, incentives or tax reliefs available depending on the technology, location and eligibility criteria.
Smart Export Guarantee (SEG) — Get Paid for Your Solar Surplus
If your business generates electricity from solar panels or another eligible renewable source, the Smart Export Guarantee allows you to get paid for electricity you export to the grid. Under the scheme, electricity suppliers with 150,000 or more domestic customers are required to offer at least one SEG tariff to eligible generators.
Eligible installations can have a capacity of up to 5MW, or up to 50kW for micro-CHP, and you’ll need an export meter capable of providing half-hourly readings. Your installation will also need to meet the relevant SEG eligibility requirements, such as being MCS certified.
SEG export rates vary between suppliers and tariffs. Some offer fixed rates, while others offer variable or flexible rates. For businesses generating surplus electricity during weekends, holidays or out-of-hours periods, SEG payments can provide an additional income stream alongside the savings made by using your own generated electricity.
Workplace Charging Scheme (WCS) — Fund Your EV Infrastructure
As electric vehicles become increasingly common for company fleets and employee commutes, on-site charging can be a valuable addition to business premises. The Workplace Charging Scheme, administered by the Office for Zero Emission Vehicles, provides support towards the cost of installing EV charge points.
The grant covers up to 75% of the total cost of purchasing and installing charge point sockets, capped at £500 per socket, with support available for up to 40 sockets across all sites per applicant. Eligible applicants must have suitable off-street parking, and the installation must meet the scheme’s requirements and be completed by an OZEV-authorised installer.
The Workplace Charging Scheme is currently due to run until 31 March 2027, making now a good time for businesses considering workplace charging to explore their options. Beyond the grant itself, workplace EV charging can support employees and company fleets and, when combined with on-site solar generation, create opportunities to use more of your own renewable electricity.
Boiler Upgrade Scheme (BUS) — Switching to Heat Pumps
For eligible businesses in England and Wales, the Boiler Upgrade Scheme provides grant funding towards replacing existing fossil fuel heating systems with lower-carbon alternatives such as heat pumps.
The standard grant is currently £7,500 towards eligible air-to-water and ground source heat pump installations. Until 31 March 2027, eligible off-gas-grid properties replacing oil or LPG heating may qualify for an enhanced grant of £9,000. A £5,000 grant is also available towards biomass boilers in limited circumstances.
Heat pumps can provide an efficient alternative to traditional fossil fuel heating. When combined with renewable electricity, including electricity generated through on-site solar panels, they can also help businesses reduce the carbon impact of heating their premises.
The grant is generally applied for by the installer and deducted from the amount the customer pays. Eligibility depends on the property, existing heating system and technology being installed, so it’s important to check the latest requirements before proceeding.
Capital Allowances — Tax Relief on Green Investments
Renewable energy investments may also qualify for capital allowances, helping to reduce their overall tax cost. The treatment will depend on the equipment being installed and the circumstances of the business. Qualifying main-rate plant and machinery may be eligible for 100% Full Expensing, allowing companies to deduct the qualifying cost from their taxable profits in the year of investment.
Solar panels, however, are generally treated as special-rate assets rather than main-rate assets. They may qualify for the 50% first-year allowance, while the Annual Investment Allowance may also be available for qualifying expenditure, subject to the relevant limits and eligibility requirements.
Capital allowance treatment can vary, so businesses should speak to their accountant or tax adviser before factoring tax relief into the financial case for a renewable energy investment.
At Renewable Energy Solutions, we help businesses navigate the full landscape of available incentives and build a renewable strategy that maximises every pound of support on offer. Get in touch with our team today for a free, no-obligation consultation.
Information correct as of August 2026. Grant schemes and eligibility criteria are subject to change. Always verify current terms directly with the relevant administering body or speak to a qualified adviser.
