How Farms Can Still Fund Solar in 2026

Over the last few weeks, I’ve had the same conversation with several farm managers and agricultural business owners: “I heard the government's major solar grants have closed. Does that mean we’ve missed the boat on funding a solar installation?”

It is a valid concern. The big national cash grants for roof-mounted solar PV are currently paused for new applicants. But I am here to tell you that no, you haven't missed the boat. While an upfront cash grant is nice, it is absolutely not the only way to offset the cost of an agricultural solar installation. In fact, most of the commercial solar systems we install at Power & Control are funded through alternative financial incentives that are still very much active.

If you are looking to take control of your farm's energy bills this year, here are three major ways you can still financially benefit from installing solar panels, even without a direct national grant:

1. The Annual Investment Allowance (AIA) – 100% Tax Relief

This is the biggest financial lever available to you right now. Solar PV systems are considered "plant and machinery" for tax purposes. Through the government's Annual Investment Allowance (AIA), your business can claim 100% tax relief on the cost of your solar installation against your taxable profits in the year you buy it (up to the £1 million AIA limit).

While it isn't an upfront grant, it is a massive deduction on your corporation tax bill, which significantly reduces the true, net cost of the system.

2. The Smart Export Guarantee (SEG)

Solar panels generate power during the day, but what happens on a sunny Sunday when your heavy machinery isn't running? Under the Smart Export Guarantee (SEG), you get paid for any surplus electricity you export back to the National Grid.

By partnering with an SEG licensee (most major energy suppliers), you secure a tariff for every unit of energy you send back. When we design a system for you at Power & Control, we calculate this expected export revenue to show you exactly how it will shorten your Return on Investment (ROI) period.

3. Localised Green Business Grants

Just because the national Defra grants are paused doesn't mean local money has dried up. Many county councils and local enterprise partnerships have their own "Net Zero" or "Green Business" pots of funding designed to help local businesses decarbonise.

These localised grants often cover a percentage of capital costs for energy efficiency upgrades, including solar panels. It is always worth checking your specific local authority's website for "business energy grants."

Making the Numbers Work with Power & Control

Ultimately, a well-designed solar array will pay for itself through sheer energy bill savings—often within 4 to 6 years for high-usage agricultural sites.

At Power & Control (https://pac-electrical.co.uk), we do more than just wire up the panels. As your electrical project management team, we look at your site's specific energy profile. We design systems that maximise your self-consumption (using the power you generate rather than buying it), integrate heavy-duty battery storage if it makes financial sense, and ensure the grid connections are safe and compliant.

We make sure the system is engineered so perfectly for your specific operations that the investment makes complete sense, grant or no grant.