For a business, the money behind a battery usually comes from tax treatment and bill savings rather than grants. This page sets out what we could verify on 8 October 2026 and what to take to your accountant.
What is closed
- Industrial Energy Transformation Fund (IETF). GOV.UK says it was decided there would be no further extension and no successor fund is planned. The last competition window closed in April 2024. Ignore any page that presents it as open.
- Enhanced Capital Allowances. The energy technology list route ended in April 2020.
Capital allowances
- Annual Investment Allowance (AIA): 100% in year one on qualifying plant up to £1m a year, available to companies, sole traders and partnerships.
- Above the AIA cap: special-rate assets get a 50% first-year allowance (companies only), with the balance written down at 6%.
- Solar: not eligible for full expensing; the 40% first-year allowance from January 2026 applies to main-rate plant only.
- Batteries: whether a battery sits in the main pool or the special rate pool is not settled. Ask your accountant and get it in writing before you model the tax benefit.
VAT
The 0% rate on energy-saving materials applies to residential accommodation and buildings used solely for a relevant charitable purpose, to 31 March 2027. General commercial premises are charged standard-rate VAT, which most VAT-registered businesses can reclaim.
Export income
Business Smart Export Guarantee tariffs vary widely, from about 3p to 15p per kWh in the tariffs we checked, with the highest rates reserved for the supplier's own customers. A battery lets you export when the price is higher, but do not model the whole business case on export.
Finance
Borrowing, leasing and asset finance are separate decisions with their own accounting treatment. Get independent advice, and check that anyone arranging credit above the relevant thresholds is FCA-authorised.
Frequently asked questions
Is there a grant for a business battery?
No open national grant that we know of. The Industrial Energy Transformation Fund closed in July 2025 and no successor is planned; its last window closed in April 2024.
Can a company claim 100% capital allowances on a battery?
The Annual Investment Allowance gives 100% in year one on qualifying plant up to £1m a year, for companies and unincorporated businesses. Above the cap, special-rate plant gets a 50% first-year allowance for companies. Whether a battery is main-rate or special-rate plant is not settled, so ask your accountant.
Does solar qualify for full expensing?
No. GOV.UK says companies cannot claim full expensing for special-rate assets such as solar panels. They may qualify for the 50% special rate allowance instead.
Do Enhanced Capital Allowances still exist for energy technology?
No. The ECA scheme for energy and water efficient plant ended in April 2020. Freeport and Investment Zone allowances are a separate relief for designated sites.
What does a business earn for exporting?
Business Smart Export Guarantee tariffs we checked ranged from about 3p to 15p per kWh depending on supplier and tariff, and some of the best rates are for the supplier's own customers.