‘Disappointment’ at Scottish Government solar funding withdrawal

One of Europe’s oldest manufacturers of solar panels and a trade body have expressed “disappointment” at the Scottish Government’s decision to withdraw solar and battery funding from the Home Energy Scotland (HES) Grants and Loan Scheme.

It was announced that from 6 June, funding for photovoltaic panels and energy storage systems will no longer be offered through the scheme and that no new customers will be able to apply, even when installed together with a heat pump.

Previously HES was offering up to £11,500 in grants, plus interest-free loans, covering air source heat pump, solar installation and batteries.

Jamie Di Sotto, commercial director at AES Solar, stated that this will deter homeowners from fitting greener energy sources and that the government’s target of meeting net zero by 2045 is at risk.

“We as a company – and indeed the whole solar and battery storage industry – are disappointed in the sudden withdrawal of funding.

“We were once so proud that Scotland was leading the way in both residential and business funding for renewable technologies, which not only decarbonises our energy network, but takes the stress off domestic energy bills and makes businesses more competitive.

“If the Scottish Government is serious about net zero they will have to come up with an alternative plan which makes renewable energy systems affordable for all.

“Scotland’s renewables sector has experienced a huge demand for solar PV, both domestically and commercially, for several years now,“ continued Di Sotto, noting that last year, 25,875 solar power systems were fitted to homes and businesses across the country – 56% more than in 2021.

“As energy bills rise, it makes even more economic sense to install solar panels, but the removal of battery and solar panel funding is a worrying set back that will no doubt put people off investing in them.“

The Scottish Government has a stated ambition to increase solar deployment from 0.5GW of capacity to between 4GW-6GW by 2030.

“However, when financial support is withdrawn, the initial cost of converting to clean energy is likely to deter many from investing, which broadens the socioeconomic divide in access to sustainable energy,“ added Di Sotto.

Some solar companies are now offering finance deals, but he argued that they won’t be able to offer the sort of deal and trust that HES was giving. “We are calling for a cross party agreement on funding for home energy so that the same grants are always available no matter which party is in government.”

Josh King, chair of Solar Energy Scotland, said: “This decision significantly undervalues the role of solar and storage in decarbonising our energy system – and that all of our electric vehicles and heat pumps are only low carbon if they are powered by an increasing amount of clean energy.

“It overlooks the fact that loan budgets are eventually recouped and are distinguishable from the grants available for other technologies.

“Solar power has once again been a victim of its own success, being too popular due to its ability to reduce bills.

“Whilst the industry does not accept the justifications for the move, Solar Energy Scotland will continue to work with the government to unlock future funding for solar and storage.“

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