Direct grants for UK commercial warehouse solar are limited but capital allowances dominate the economic landscape. The combination of 100% Annual Investment Allowance (AIA), 50% First Year Allowance (FYA), and where applicable Freeport Enhanced Capital Allowance (ECA) typically delivers 25-50% of capex as year-one tax relief.
Capital allowance landscape
100% AIA: first £1m of qualifying capex per company per tax year. 50% FYA: residual capex above £1m, special-rate plant. Freeport ECA: 100% on plant and machinery within designated zones. IETF (Industrial Energy Transformation Fund): 30-50% capital intervention rates for eligible cold chain and food production operators.
What's no longer available
Feed-in Tariff: closed 2019. Direct grant subsidy for commercial PV: largely phased out after FiT closure. Government policy approach has been to use capital allowance treatment as the primary economic lever.
See more
Capital allowance detail: /guides/warehouse-solar-capital-allowances/. Cost economics: /warehouse-solar-costs/.