IETF Phase 3 eligibility: does your warehouse qualify?
IETF Phase 3 is administered by the Department for Energy Security and Net Zero (DESNZ). Core eligibility criteria: (1) Industry threshold: minimum 1 GWh/year (1,000,000 kWh) of energy consumption at the site (electricity + gas combined). This is approximately equivalent to an electricity bill above £220,000/year at 2026 rates for a warehouse. (2) SIC code: the business must be classified under manufacturing or industrial processing SIC codes. Note: pure logistics and distribution businesses are generally NOT eligible under the industrial threshold — IETF targets manufacturing, processing and production. (3) Project type: the project must deliver verifiable energy intensity reduction (kWh per tonne of product or per unit of output). Solar PV is eligible as it reduces grid electricity intensity at the production site. (4) Location: England only for most IETF streams; Scotland, Wales and Northern Ireland have devolved equivalents.
IETF application process: step by step
IETF Phase 3 application follows a two-stage process: Stage 1 — Expression of Interest (EoI): submit a short (4-6 page) document covering company profile, site energy consumption, proposed project, estimated cost, and expected energy saving. EoI typically assessed in 4-8 weeks. If invited to Stage 2: Stage 2 — Full Application: detailed project business case including energy audit evidence (DEA assessor or energy management consultant report), detailed project costings, energy saving calculation methodology, procurement plan, and financial modelling. Stage 2 assessment typically 10-16 weeks. Grant offer: binding commitment from DESNZ, valid for project delivery within 18-24 months of offer. Drawdown on project completion after independent verification.
Maximising your IETF grant percentage (30% vs 50%)
IETF grants range from 30% to 50% of eligible project cost. Factors that push toward 50%: (a) Higher energy intensity reduction: projects delivering above-average kWh/tonne saving get higher grant rates; (b) SME status: small and medium enterprises (under 250 employees, under £50m turnover) typically receive higher grant rates than large companies; (c) Deprived area location: sites in BEIS-defined energy-intensive industrial clusters or levelling-up areas may qualify for higher rates; (d) Deep decarbonisation evidence: projects that include fuel-switching (e.g. from gas to electric heat, EV charging) alongside solar demonstrate broader decarbonisation and receive favourable scoring; (e) Strong energy audit quality: audits conducted by ISO 50001-accredited energy management consultants score higher than basic assessments.
Energy audit requirements for IETF solar applications
IETF applications require a site energy audit demonstrating current consumption, baseline intensity, and projected saving from the solar installation. Audit requirements: (1) 24-month AMR (Advanced Metering Infrastructure) data showing half-hourly consumption — demonstrates consumption profile and self-consumption potential; (2) Current EPC and SBEM model for the site; (3) PVSyst or equivalent solar yield model — professionally prepared, validated against local Met Office irradiance data; (4) Self-consumption analysis — demonstrating what proportion of solar generation is consumed on site versus exported; (5) Carbon saving calculation using BEIS-approved emission factors; (6) Cost-benefit analysis at multiple grant rates. We prepare IETF energy audit packages at cost (typically £3,000-£8,000 for a warehouse site) and include this as part of the overall project delivery for projects above 500 kW.
IETF timeline: from application to energised solar system
Full IETF-to-energised timeline for a warehouse solar project: EoI submission (Week 0) → EoI decision (Week 4-8) → Stage 2 submission (Week 12) → Grant offer (Week 24-28) → G99 application (concurrent from Week 4) → G99 connection (Month 10-14 from G99 submission) → Panel installation (8-10 weeks from DNO connection) → Energisation (Month 16-20 from EoI). Total: 16-20 months from EoI to first generation. Businesses needing faster deployment should consider applying for IETF before commissioning — grant cannot be claimed retrospectively, but EoI can be submitted before design is complete. We project-manage IETF and G99 in parallel to minimise programme duration.
Common questions
Does my warehouse qualify for IETF Phase 3?
Core tests: 1 GWh+/year energy consumption at site; manufacturing/industrial processing SIC code; England location. Pure logistics and distribution operations generally do not qualify — IETF targets manufacturing. We assess IETF eligibility during desk feasibility at no charge.
What grant percentage can a warehouse manufacturer expect from IETF?
Typically 30-40% for large companies; 40-50% for SMEs (under 250 employees); higher rates for sites in levelling-up areas or with deep decarbonisation scope (fuel switching alongside solar).
Can I apply for IETF before the solar system is designed?
Yes — IETF EoI can be submitted before design completion. You cannot claim the grant retrospectively (after installation), so apply before committing to the project. We run G99 application and IETF application concurrently to minimise programme duration.
How do I get AMR data for an IETF application?
Contact your electricity supplier or metering agent to request 24-month AMR half-hourly consumption data. Most commercial sites above 100 kW already have mandatory AMR meters (legally required from April 2014 for sites above 30 kVA). We can help request and process AMR data as part of the desk feasibility.