Grants and funding for solar panels for farms
UK grants, tax reliefs, and finance routes for solar panels for farms. Updated for 2026.
Funding routes for this sector
100% Annual Investment Allowance
All UK farm businesses paying corporation tax or self-assessment. Solar PV qualifies as plant and machinery up to £1m per year.
- Value
- Up to 25% effective tax saving year one for limited companies; comparable for sole-trader/partnership farms.
Most farm installs fall well within the £1m AIA cap and are fully expensed year one.
Sustainable Farming Incentive (SFI)
England-wide. Various actions reward biodiversity, soil health, and integrated farm management — agrivoltaics and on-farm renewables are increasingly aligned.
- Value
- £500–£5,000+ per hectare per year for relevant actions.
Solar alone isn't an SFI action, but agrivoltaic schemes can stack with biodiversity actions. SFI 2025 update is bringing more renewable-energy alignment.
Farming Investment Fund (FIF)
England farms. Capital grants for productivity-improving investments. Solar typically not eligible directly but can be paired with eligible items.
- Value
- £500–£500,000.
Worth checking for indirect eligibility (e.g. solar paired with grain dryer, dairy parlour upgrade).
Smart Export Guarantee (SEG)
MCS-certified PV installs up to 5 MW.
- Value
- 4–15p/kWh.
Farms with seasonal load profiles often export significantly — SEG matters more here than in 24/7 sectors.
Devolved Schemes (Wales — Welsh Government, Scotland — Scottish Rural Development Programme)
Welsh and Scottish farms have their own grant frameworks (Rural Investment Scheme, Sustainable Production Grant) with farm-renewable energy support.
- Value
- Varies — typically 10–40% intervention rates.
Scottish and Welsh farms should check devolved schemes specifically. Often more generous than England equivalents.