Industrial Energy Transformation Fund for business solar
Applies in some casesThe main national grant that private industrial businesses could apply to — but it closed to new applications in 2025 and has no 2026 window.
Who qualifies
Businesses with high energy use (energy-intensive industry / manufacturing) in England, Wales and Northern Ireland. This was one of the few large UK grants genuinely open to PRIVATE companies — but it is now closed. Scotland ran a separate Scottish IETF. Existing awarded projects remain funded through completion; new applicants cannot join.
How much it is worth
Circa £500m total across the programme (2020–2028). Phase 2 ~£220m (2021–2027); Phase 3 up to £185m (2024–2028). Grants covered feasibility/engineering studies and capital deployment of energy-efficiency and deep-decarbonisation measures for eligible high-energy-use sites.
Where it stands in 2026
CLOSED to new applications. Following the 2025 Spending Review the government confirmed (3 July 2025) no further extension of the IETF and that the planned second Phase 3 competition window will NOT take place. The Phase 3 Spring 2024 competition closed on 27 May 2025. No successor fund is planned. As of July 2026 there is no open IETF competition.
How to claim the Industrial Energy Transformation Fund
- 1No application is currently possible — the fund is closed to new applicants.
- 2If you hold an existing IETF award, continue delivery via your grant agreement; queries to ietf@energysecurity.gov.uk.
- 3For future opportunities, monitor the DESNZ IETF collection page on GOV.UK and register interest for any successor industrial decarbonisation scheme.
Key facts, checked against official sources
- Closed to new applications; confirmed at the 2025 Spending Review (announced 3 July 2025).
- No further extension and no second Phase 3 competition window; no successor fund planned.
- Was open to PRIVATE energy-intensive industry — a genuine exception among UK 'solar grants' which are mostly public-sector-only.
- Existing Phase 1/2 and first Phase 3 window projects remain fully funded to completion (~£163m committed at Autumn 2024 Budget to finish current projects).
- Covered England, Wales and Northern Ireland; Scotland had a separate Scottish IETF.
Reliefs like this change the true net cost of every funding route. Model it in the finance calculator, or see how it fits alongside the other options on the grants & funding hub.