From August 2023, the Scottish Government limited solar funding through the Home Energy Scotland Grant and Loan Scheme to homes with renewable heating systems, ending support for solar panels installed in their own right1. Before that point, solar panels had been funded independently through the scheme1.
The change was followed on 6 June 2024 by the withdrawal of solar and battery funding altogether. Energy Saving Trust Scotland said no new customers would be able to apply for solar PV and battery storage, even when installed together with a heat pump1. Previously the scheme offered up to £11,500 in grants plus interest-free loans covering an air source heat pump, solar installation and battery1.
"Funding for solar PV and energy storage systems (electricity and heat batteries) will no longer be offered through the scheme. From today (6 June 2024), no new customers will be able to apply for solar PV and battery storage, even when installed together with a heat pump."
Helen Melone, head of heat and solar at Scottish Renewables, said the withdrawal could leave homeowners fitting heat pumps more exposed to high energy bills, and warned of effects on the solar supply chain and on businesses in Scotland1. She said solar panels "can provide independence from energy prices" and allow people to be in more control1.
A Scottish Government spokesperson said solar has an important role in decarbonising energy supply, but that the government cannot meet climate targets without ending polluting heating. The spokesperson said the scheme supported more than 2,000 heat pump installations and more than 1,500 energy efficiency measures last year, a 17% increase on the previous period, and that finite resources were being prioritised on those measures1. The spokesperson cited a capital block grant expected to be cut in real terms by nearly 9% over five years, a cumulative loss of over £1.3 billion, and a reduction of around £290 million, or 62%, in the FT allocation in 2024/25 compared with 2022/231.
Small-scale solar installations in Scotland reached record highs in 2023, rising 174% on 2020 according to the Microgeneration Certification Scheme, with nearly 26,000 solar panels installed in a single year1. The Home Upgrade Grant in England continues to cover solar1.
| Change | Date | Effect |
|---|---|---|
| Solar funding limited to homes with renewable heating | August 2023 | Solar no longer funded in its own right1 |
| Solar PV and battery funding withdrawn | 6 June 2024 | No new applications, even with a heat pump1 |
Why it matters for households
For a household, the combination of solar panels, a battery and a heat pump is a route to lower running costs, because generation and stored electricity offset the power a heat pump draws. One heat pump owner quoted in the coverage said his costs only came down by having solar and a battery and charging overnight1. Removing grant support for solar and batteries changes the upfront arithmetic for that combination, even where a heat pump itself remains supported.
The restriction from August 2023 meant solar was no longer funded as a standalone measure, so a household wanting panels without renewable heating could not access the scheme for them. The later withdrawal removed the option entirely, including for homes installing a heat pump at the same time1. Households in England are in a different position, as the Home Upgrade Grant there continues to cover solar1.
What happens next
No replacement funding for solar PV or battery storage through the Home Energy Scotland scheme has been reported. The Scottish Government has not set out a date for restoring that support, and the coverage does not state what households already partway through an application should expect.
Sources1 cited
- Pulling of Home Energy Scotland solar PV funding criticised | The Herald, heraldscotland.com