Improving Farm Productivity Grant for Solar (England 2026)
Published by SEO Dons · Last reviewed September 2026
The Improving Farm Productivity (IFP) grant was England’s dedicated capital grant for solar PV on farms. It paid up to 25% of the cost of eligible items, with a minimum grant of £15,000 (so a project of at least £60,000) and a maximum of £100,000 per business, and it covered rooftop or irrigation-reservoir solar only — ground-based arrays were not eligible. Round 2 has closed (gov.uk guidance, updated 2 March 2026), and gov.uk’s Funding for farmers page (updated 22 September 2026) lists no further round. This guide explains how the scheme worked, what it funded, how capital allowances fit, and what the devolved nations offer instead. For the dated position on every scheme, see our page of solar grants for farmers.
What the Improving Farm Productivity grant covered
The IFP grant sat within Defra’s Farming Investment Fund for England, run by the Rural Payments Agency. For solar, it funded on-farm generation to power the holding: the system had to be mainly for farm power, and not on a residential property.
The grant was paid against a claim after the kit was bought and installed, and nothing could be started or ordered before the project start date in the grant funding agreement.
Eligible items under the solar component
Round 2 funded the working system, not just the panels. Its eligible items were:
- Solar PV panels (on a farm-building roof or an irrigation reservoir)
- Solar batteries
- Inverters
- Utility meters
- Electrical grid connections
- Power diverters
Rooftop or reservoir only — never ground-mount
This was the rule most often misunderstood. The IFP grant funded solar on a farm-building roof or on an irrigation reservoir. It excluded a ground-based solar array on a field, paddock or yard. If your plan is a field-scale array or a solar farm, IFP was never the right instrument — see the ground-mount section below.
How much the grant was worth
Because the rate was 25% with a floor and a ceiling, the arithmetic is simple:
| Eligible project cost | Grant at 25% | Status |
|---|---|---|
| £40,000 | £10,000 | Below minimum — not eligible |
| £60,000 | £15,000 | Minimum eligible project |
| £150,000 | £37,500 | Eligible |
| £300,000 | £75,000 | Eligible |
| £400,000 | £100,000 | At maximum grant ceiling |
| £600,000 | £100,000 | Capped at £100,000 |
The £60,000 floor mattered: at a 25% rate, the £15,000 minimum grant meant eligible spend had to reach £60,000 to qualify at all, so smaller rooftop jobs could not use IFP.
Is there a new round?
Not as of September 2026. Round 2’s online checker opened on 25 January 2024 and closed on 21 March 2024, and full applications closed on 31 July 2025. The applicant guidance says round 2 is closed, and gov.uk’s Funding for farmers page — the list of what is open in England — shows no further IFP round.
If a round does open, its rules are likely to look like the last one’s, so the useful preparation is the same: twelve months of half-hourly meter data, a roof or reservoir site, quotations (but no orders), landlord permission if you are a tenant, and an early grid enquiry. Watch the Funding for farmers page rather than waiting for a date that has not been set.
IFP is not FETF — don’t confuse the two
Both schemes sat under the Farming Investment Fund, and they are often mixed up:
- Improving Farm Productivity (IFP) — the capital grant. Up to 25% of cost, £15,000–£100,000 for solar, for substantial infrastructure including solar PV systems.
- Farming Equipment and Technology Fund (FETF) — a fixed-amount equipment fund paying a set contribution per item from a published list, roughly £1,000–£25,000 per grant theme. Its 2023–2026 item lists did not include solar panels to power a farm, and its 2026 window closed at midday on 12 May 2026.
If anyone tells you England’s solar grant is “FETF at 40%”, that is wrong. England’s solar capital grant was IFP at up to 25% — and it has closed.
How IFP interacts with the Annual Investment Allowance
Solar PV on a farm normally qualifies for the Annual Investment Allowance (AIA), which lets most farm businesses deduct 100% of the cost of qualifying plant and machinery from taxable profits in the year of purchase, up to £1 million a year.
The two reliefs combine, but you cannot claim capital allowances on the part of the cost the grant paid for (section 532 of the Capital Allowances Act 2001). The mechanics:
- You install a £200,000 rooftop system.
- IFP pays 25% = £50,000.
- Your net cost is £150,000.
- You claim AIA on that £150,000, deducting it from taxable profit in year one.
That rule means a grant is worth less than its face value to a profitable farm — about three-quarters of it to a company paying 25% corporation tax. We work through the sum in is a farm solar grant worth its face value after tax?, and the reliefs themselves are explained in capital allowances on solar panels. Always confirm the figures with your accountant.
What rooftop farm solar actually costs
DESNZ’s 2025/26 statistics put the median installed cost of a 10–50 kW solar system at about £1,262 per kW (MCS-certified installations in Great Britain, including VAT where applicable); larger farm arrays are priced per project. Farms with steady daytime demand — dairy parlours, poultry ventilation, grain drying, cold storage — get the most from each kWh generated. For a breakdown by system size, see our agricultural solar panel cost guide.
What if you want a ground-mount or solar farm?
IFP never funded field-scale arrays, and no current UK farm scheme does. Ground-mount and solar-farm projects are commercial generation projects, usually delivered through a land lease — a developer rents the land and builds, owns and operates the array — or a power purchase agreement, and large schemes compete in the government’s Contracts for Difference auctions. Lease terms and rents are negotiated project by project, so take land-agent and legal advice on any offer. For the site economics, see our guide to the 1-acre solar farm.
Wales, Scotland and Northern Ireland
IFP was England-only, and none of the devolved nations’ current farm schemes funds solar panels:
| Nation | Current position (September 2026) |
|---|---|
| England | IFP round 2 closed; no further round announced |
| Wales | No grant for panels; the Sustainable Agriculture Loan Scheme lends £25,001–£1 million at a fixed 3% for on-farm renewable generation |
| Scotland | The Future Farming Investment Scheme excluded solar panels in 2025; its winter 2026 item list is not yet published |
| Northern Ireland | DAERA’s Sustainable Farming Investment Scheme did not list solar panels in round 1 |
The detail, with sources, is on our page of solar grants for farmers.
Frequently asked questions
Is the Improving Farm Productivity grant the same as FETF?
No. IFP was the capital grant of up to 25% for substantial infrastructure including solar PV (£15,000–£100,000 for solar). FETF is a separate fixed-amount fund for individual pieces of equipment (roughly £1,000–£25,000 per theme), and its 2026 window closed on 12 May 2026.
Can I get an IFP grant for a ground-mounted solar farm?
No. IFP funded rooftop or irrigation-reservoir solar only, and it has closed. Ground-mounted arrays are funded commercially, through leases, power purchase agreements or Contracts for Difference.
What was the smallest project that qualified?
Because the minimum grant was £15,000 at a 25% rate, the eligible project had to cost at least £60,000.
Can I claim capital allowances as well as a grant?
Yes, but only on the cost net of the grant. You deduct the grant first, then claim the Annual Investment Allowance on the remaining qualifying spend.
When can I apply?
You can’t at the moment: round 2 has closed and no further round has been announced. Watch gov.uk’s Funding for farmers page, and prepare your meter data, quotes and grid enquiry so you are ready if a round opens.
The bottom line
For England, the Improving Farm Productivity grant was the dedicated capital grant for farm solar: up to 25% of eligible cost, £15,000 to £100,000, rooftop or reservoir only. Round 2 has closed, so a rooftop system today stands on its own economics: the £1 million Annual Investment Allowance, the electricity the farm uses itself and any export income. If you are weighing field-scale generation, think in terms of a lease or power purchase agreement instead. Our guide to solar on farm buildings covers generation, planning and tax for the rooftop route.
Related reading
- Solar grants for farmers — The dated status of every funding route across the UK.
- Capital allowances on solar panels — The tax relief that still applies.
- Agricultural solar panel cost — Installed-cost breakdown for your business case.
- 1-acre solar farm — Ground-mount economics.
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