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Grants & Finance

Solar grants and finance in Wales

Welsh businesses can access up to £1 million in capital grants, alongside Development Bank loans, PPAs, and Annual Investment Allowance relief. This is a guide to all options available in 2026.

Public funding

Grant and loan schemes for Welsh businesses

Unlike most of England, Wales has a separate grant programme through Welsh Government specifically for renewable energy capital expenditure. These are not loans -- they are non-repayable awards for qualifying projects.

Welsh Government

Ynni Cymru Capital Grant

£25,000 to £1,000,000

Welsh-trading businesses, social enterprises, and community groups installing qualifying renewable energy technology.

FLD can provide the technical specification required for your application at no additional charge.

Development Bank of Wales

Development Bank of Wales Green Business Loan

£1,000 to £5,000,000

Welsh SMEs and mid-caps. Fixed rate, flexible terms. Complements Ynni Cymru grants.

FLD can provide the technical specification required for your application at no additional charge.

Salix Finance / Welsh Government

Salix Finance (Public Sector)

Interest-free loans

Schools, NHS Wales trusts, local authorities and other public bodies. Repaid from energy savings.

FLD can provide the technical specification required for your application at no additional charge.

Tax relief

Annual Investment Allowance and full expensing

Commercial solar installations qualify for 100% Annual Investment Allowance (AIA) in the year of installation under current UK tax rules. For a profitable Welsh business paying corporation tax at 25%, this means approximately 25p in tax relief for every £1 spent on a qualifying solar installation.

On a £200,000 system, that is £50,000 of first-year tax relief, reducing the effective net cost to £150,000 and cutting the payback period from 3.4 years to approximately 2.5 years post-tax.

Permanent full expensing (announced in the 2023 Autumn Statement) extended this relief indefinitely for qualifying plant and machinery, which includes solar PV assets. The current AIA limit is £1 million per year.

Commercial finance routes
Commercial Solar PPA
Zero upfront cost

A Power Purchase Agreement lets your business install solar with no capital outlay. We fund the system and you buy the electricity it generates at a fixed, RPI-indexed unit rate that is lower than your grid tariff. Typical terms are 10 to 25 years, with a buy-out option at the end.

Self-Finance Contract
Buy outright, own from day one

Purchase the system outright and claim 100% first-year Annual Investment Allowance relief under current rules. Post-tax payback is typically 2.5 to 4 years for commercial rooftop solar in South Wales.

Asset Finance
Spread payments over 3 to 7 years

Hire purchase or lease structures for businesses that want ownership without a one-off capital hit. We work with established UK asset-finance lenders.

Important timing rule

Apply before you commit to procurement

Ynni Cymru requires that you receive an award letter before signing contracts or purchasing equipment. Retrospective applications are not accepted. If you proceed with installation before applying, you are no longer eligible.

The expression of interest takes 20 minutes to complete. FLD provides the technical specification pack at no charge. Submit the expression of interest at the same time as you request quotes.

Request a quote and grant support

Ready for a fixed-price quotation?

Speak to Paul directly. Most quotes turn around within five working days of a site survey.

Trusted by NHS care providers, HMCTS and private developers across South Wales.