Growth Guarantee Scheme for solar finance
What the British Business Bank’s Growth Guarantee Scheme is, what it can and cannot do for a commercial solar project, and the published limits, terms and rules as they stand in October 2026.
What the Growth Guarantee Scheme is
GGS is the successor to the Recovery Loan Scheme. It launched with accredited lenders on 1 July 2024 and is administered by the British Business Bank on behalf of the Secretary of State for Business and Trade. It supports term loans, overdrafts, asset finance, invoice finance and asset-based lending, although not every lender offers every product.
The scheme exists so that lenders can back more viable smaller businesses than they otherwise would. The Bank is explicit that if a lender can offer a commercial loan on better terms without the guarantee, it will do so. The guarantee goes to the lender, and the borrower remains fully liable. Pricing is set by the lender and takes into account the guarantee and a fee the lender pays for it, so the scheme does not set a rate: the benefit of the guarantee may be reflected in the price, but how much is the lender’s decision.
For a solar project the practical effect is on approval, not on tax or cost. A lender weighing an unsecured solar loan or a hire purchase agreement for a younger or thinner-covenant business may be more willing with a guarantee behind it. Read this page alongside our guide to solar panel finance for how the underlying routes compare.
The published terms at a glance
These are the terms the British Business Bank publishes on its Growth Guarantee Scheme pages, read on 14 October 2026. They change, so confirm the current position with the lender.
| Term | What the Bank publishes |
|---|---|
| Maximum facility | Generally £2m per business group; £1m for borrowers in scope of the Northern Ireland Protocol, with lower caps in some sectors such as agriculture |
| Minimum facility | From £1,000 for asset finance, invoice finance and asset-based lending; £25,001 for term loans and overdrafts (lenders may set higher floors) |
| Term | Term loans and asset finance: three months to six years under the current terms. Overdrafts, invoice finance and asset-based lending: three months to three years |
| The guarantee | 70% government-backed guarantee to the lender, against the outstanding balance after its normal recovery process. The borrower remains 100% liable |
| Personal guarantees and security | Personal guarantees at the lender’s discretion; a principal private residence cannot be taken as security within the scheme |
| Who can borrow | Smaller businesses with turnover up to £45m (group basis), trading in the UK, with a viable proposition and not a business in difficulty. For most businesses more than 50% of income must come from trading; charities and further education colleges are exempt |
| What the money can be used for | Any legitimate business purpose, including investment, provided the business can afford the additional debt |
| Decisions and checks | Made by the lender, which carries out its standard credit and fraud checks |
| How to apply | Through an accredited lender (the Bank publishes the list), not through the Bank |
What the July 2026 announcement changes
On 12 July 2026 the Chancellor announced more capacity for the scheme: a further £6.5bn of lending over the next four years. The package also supports terms of up to ten years for term loans and asset finance, and raises the annual turnover limit from £45m to £54m. The Bank has said it is working with accredited lenders to put these changes into operation over the coming weeks, and that the scheme continues to operate on its existing terms in the meantime.
What that means in practice: a longer term lowers the monthly payment on a solar facility but raises the total cost of credit, so the extra years are a trade rather than a gain. Ask a lender which terms apply to an application made today, and get the total cost of credit for each term in writing. Our solar finance repayment table shows how much the term moves both numbers.
How it applies to a solar project
GGS is not specific to solar, and the Bank does not underwrite your project. What it can do is sit behind the finance for it. The routes that can fall under the scheme are asset finance, which covers hire purchase and leases, and term loans, which cover a green equipment loan. Whether a particular lender writes solar under the scheme, in what size and on what security, is that lender’s decision, so the useful question to put to an accredited lender is whether it does and what its own minimum is.
The guarantee does not change the tax. The capital allowances follow ownership: you claim them under hire purchase or a loan, and a lessor usually does under a lease, as set out in our guide to capital allowances on solar panels. The Bank’s scheme page also mentions a pilot to enhance GGS for businesses investing in sustainable assets, often called Green GGS. Whether it is open, and on what terms, is for the lender to confirm.
Personal guarantees and security
The published rule is short: a lender can take personal guarantees at its discretion in line with its normal commercial practice, but a principal private residence cannot be taken as security within the scheme. That is a real protection for a director’s home, but it is not a promise that no guarantee will be asked for. Asset finance is usually secured on the equipment itself, and a lender may ask for a director’s guarantee on top, particularly for a newer business. See our guide to personal guarantees and security on solar finance for what to ask and what to get in writing.
Subsidy control: the £315,000 limit
A GGS facility counts as a subsidy because the government guarantee gives the borrower an advantage. For a business outside the scope of the Northern Ireland Protocol it is Minimal Financial Assistance under the UK Subsidy Control Act, and the most subsidy that can be paid to a borrower or its group through GGS over three fiscal years is £315,000. The subsidy value is not the amount borrowed: the lender tells you the value. Other relevant subsidies received in the same three-year period count against the limit, and you must declare them to the lender in writing. The Bank lists local authority grants among them, so a regional grant for the same project can matter. Our post on combining a grant with Growth Guarantee Scheme finance works through how that stacks.
How to use the scheme for a solar project, step by step
- Get an installer’s quote and a clear picture of the system size and cost.
- Check you meet the basics: turnover within the limit, UK trading, a viable proposition and not a business in difficulty.
- Find accredited lenders on the British Business Bank’s list, and ask each whether it writes solar asset finance or loans under the scheme, its own minimum, the terms currently available and its policy on personal guarantees.
- Be ready to declare any other subsidies received in the last three fiscal years, including local authority grants.
- Expect the lender’s standard credit and fraud checks, and the usual documents: filed accounts, recent management figures and the installer’s quote.
- Compare the offer with non-GGS offers on the total cost of credit. A guarantee helps approval; it does not guarantee the best price.
What the scheme does not do
- It is not a grant, and it does not reduce what you owe: you remain 100% liable.
- It does not guarantee approval: the lender decides, and must be satisfied you can afford the debt.
- It does not set or cap the interest rate: pricing is the lender’s.
- It does not lend directly: applications go through an accredited lender.
- It does not change who claims the capital allowances, or the Smart Export Guarantee income, on a solar system.
Figures on this page and where they come from
| Figure | Source |
|---|---|
| £2m maximum, £1,000 and £25,001 minimums, three months to six years, 70% guarantee, personal guarantee and residence rules, £45m turnover | British Business Bank, Growth Guarantee Scheme, read 14 October 2026 |
| 12 July 2026 announcement: £6.5bn, ten-year terms, £54m turnover limit | The same page |
| £315,000 over three fiscal years; what counts as a relevant subsidy | British Business Bank, GGS subsidies, read 14 October 2026 |
| Capital allowances follow ownership; AIA 100% up to £1m a year | GOV.UK, Annual Investment Allowance |
Related guides
Growth Guarantee Scheme FAQs
Is the Growth Guarantee Scheme a grant?
No. It is a government-backed guarantee given to the lender, not money paid to you. The scheme gives an accredited lender a 70% guarantee against the outstanding balance of the facility after the lender has completed its normal recovery process, and you remain 100% liable for the debt. It helps a lender say yes to a viable business it might otherwise decline; it does not reduce what you repay.
Can I use the Growth Guarantee Scheme to finance solar panels?
It can support the finance behind a solar project, because the scheme backs term loans and asset finance and the money can be used for any legitimate business purpose, including investment. The decision rests with the lender: GGS-backed facilities are provided at the lender’s discretion, not every lender offers every product, and you must be able to afford the additional debt. Ask an accredited lender whether it writes solar facilities under the scheme and what its own minimum is.
What is the maximum Growth Guarantee Scheme facility?
Generally up to £2m per business group. Borrowers in scope of the Northern Ireland Protocol can borrow up to £1m, and a lower cap applies in some sectors such as agriculture. Minimum sizes vary: asset finance can start at £1,000, while term loans and overdrafts start at £25,001. Each lender may set a higher floor of its own.
Do I have to give a personal guarantee?
Not necessarily, but you may be asked. The British Business Bank’s published rules say personal guarantees can be taken at the lender’s discretion, in line with its normal commercial lending practice, and that a principal private residence cannot be taken as security within the scheme. Ask the lender before you apply what it requires, and have any guarantee in writing and capped where you can.
How long can a Growth Guarantee Scheme facility run?
Under the terms currently published, term loans and asset finance run from three months up to six years, and overdrafts, invoice finance and asset-based lending up to three years. In July 2026 the Chancellor announced that terms of up to ten years would be supported for term loans and asset finance. The Bank is working with accredited lenders to implement that, so ask which terms apply to your application.
How do I apply for a Growth Guarantee Scheme facility?
Through an accredited lender, not through the British Business Bank, which publishes the list of accredited lenders. The lender carries out its own credit and fraud checks, decides whether to approve and sets the price. You will be asked a couple of questions about links to Northern Ireland and to confirm in writing that the facility will not take you over your subsidy limit.
Does the scheme change the capital allowances on a solar system?
No. The tax position follows the route you choose: if you own the system through hire purchase or a loan you claim the allowances, and if a lessor owns it the lessor usually does. The guarantee does not change that. It does, however, count as a subsidy for subsidy-control purposes, which matters if you also receive a grant.