Grants and funding for solar panels for colleges
UK grants, tax reliefs, and finance routes for solar panels for colleges. Updated for 2026.
Funding routes for this sector
Public Sector Decarbonisation Scheme (PSDS) Phase 4
All central government public sector bodies including FE corporations, sixth form colleges, specialist designated institutions and land-based colleges (post Nov-2022 ONS reclassification). Capital grants for low-carbon heating, building fabric, and renewables.
- Value
- Typically £100,000 to £5m+ per project. 100% capital grant for eligible measures.
Operated by Salix Finance on behalf of DESNZ. Phase 4 opened to applications in 2024 with rolling rounds. Strongest applications pair solar with heat decarbonisation (air-source heat pump or heat-network connection) and include a board-level Climate Action Plan reference.
Salix Decarbonisation Loan (Colleges)
FE corporations, sixth form colleges, specialist designated institutions, land-based colleges. Interest-free loans repaid from energy savings.
- Value
- Typically £30,000 to £600,000 per project. No interest. Repayment period up to 8 years (longer for portfolio programmes).
Now the default funding route for college solar since the Nov 2022 reclassification. Auditable energy-savings calculation required. Repayments come straight out of energy savings — net cash-flow positive from year one.
FE Capital Transformation Fund
FE corporations in England — capital investment in college estates. Sustainability and decarbonisation are explicit eligibility criteria from 2023 onwards.
- Value
- Typically £500,000–£20m for major estate projects. Solar typically a component of a wider refurb or new-build bid.
Solar usually included as part of a larger building refurbishment or new-build bid rather than a standalone PV grant. Strong bids tie PV to T-Level capital workshops, low-carbon heat, or condition improvements.
T-Level Capital Fund
FE corporations and sixth form colleges delivering T-Level routes. Capital for new workshop space, equipment, refurbishment.
- Value
- Variable by route. Typically £200,000 – £4m per institution per wave.
Solar can be included where it accompanies new T-Level building works (e.g. solar on a new construction-trades workshop roof). Tying PV to T-Level capital scoring increases bid competitiveness — DfE explicitly favours bids with embedded sustainability.
Post-16 Capacity Fund (Skills Capacity)
FE corporations and sixth form colleges expanding 16-19 capacity. Capital for new build and major refurbishment.
- Value
- Round-based. Feb 2026 round £300m+ across the sector with bids by April 2026.
Solar typically included as part of broader new-build or extension projects. Recent rounds have favoured net-zero-ready buildings.
Mayoral Combined Authority (MCA) Decarbonisation Schemes
Colleges in Greater Manchester, West Midlands, West Yorkshire, Liverpool City Region, South Yorkshire, North East and other MCA areas. Scheme criteria vary.
- Value
- Typically £25,000–£500,000 per project. Sometimes match-funded against Salix or PSDS.
Several MCAs (notably Greater Manchester, West Midlands and London) run their own public-sector building decarbonisation grant pots specifically open to FE estate. Worth checking your MCA — funding rounds change frequently.
Smart Export Guarantee (SEG)
All MCS-certified PV installs up to 5 MW.
- Value
- 4–15p/kWh exported as of 2026.
FE colleges with strong holiday and weekend export benefit. Octopus Outgoing and E.ON Next Export Exclusive among the best non-domestic tariffs.