Grants and funding for solar panels for schools

The biggest myth in school solar is that you need spare capital to do it. You usually don't. Between interest-free public-sector loans, capital grants and export income, most maintained schools and academies can install solar at little or no net cost — the challenge is picking the right route for your school's status. This is the guide no supplier seems to write clearly, so here it is.

Salix, PSDS or CIF — which route is yours?

Three schemes do most of the heavy lifting, and they suit different schools:

• Salix Decarbonisation Loan — interest-free finance for maintained schools, academies and FE colleges, repaid directly from the energy savings. Because the repayment is smaller than the saving, the project is cash-flow positive from year one. This is the default route for most state schools, and the reason "free solar panels for schools" is close to true in practice.
• Public Sector Decarbonisation Scheme (PSDS) Phase 4 — a capital grant (up to 100% of eligible cost) for public-sector buildings, administered by Salix for DESNZ. Highly competitive; the strongest bids pair solar with heat decarbonisation.
• Condition Improvement Fund (CIF) — for academies, sixth-form colleges and voluntary-aided schools. Solar scores best when bundled with a roof refurbishment, since it addresses condition and energy in one bid.

Maintained schools and FE typically use Salix or PSDS; academies gain CIF on top; independent schools generally self-fund (see below). We map the exact combination for your school and write the auditable energy-savings calculation each scheme requires — you sign the form.

No capital at all? Consider a solar PPA

Where a school or trust would rather not borrow or bid, a Power Purchase Agreement lets a funder pay for and own the system while the school simply buys the electricity it generates at a rate below the grid price. It's a genuine zero-upfront route that suits trusts protecting their borrowing headroom. Our sister resource explains how a solar PPA for schools and academy trusts is structured and where it does and doesn't beat a Salix-funded purchase.

Smart Export Guarantee — getting paid for the summer holiday

A term-time school over-generates in July and August when it's closed. The Smart Export Guarantee pays for that exported electricity — currently 4–15p/kWh depending on supplier. It won't transform a business case on its own, but it turns the "wasted holiday generation" objection into a modest income line. Schools that add a battery keep more of that generation for term-time use instead.

How the schemes stack, and the pitfalls

You generally can't double-fund the same measure, but you can sequence intelligently — for example, using CIF to fund a re-roof and Salix to fund the PV that goes on top, or pairing PSDS heat measures with self-funded solar. The common pitfalls we see: applying in the wrong funding window (Salix and CIF run to annual rounds), submitting a savings calculation that won't survive audit, and forgetting that capital projects above the ESFA threshold need trust-level governance sign-off. We've prepared these applications before and steer schools around each one.

Independent and Welsh schools

Independent schools sit outside Salix, PSDS and CIF and usually fund from reserves or low-cost bonds — the VAT-on-fees change since January 2025 has sharpened their appetite for the energy savings. Schools in Wales decarbonise through Welsh Government routes (the Welsh Government Energy Service and local-authority borrowing) rather than the England-only PSDS and CIF. We'll tell you which applies to you before you spend a day on the wrong form.