The Scottish Government removed solar photovoltaics and battery storage from eligibility under the Home Energy Scotland (HES) Grant and Loan scheme from 6 June 2024, according to its Heat in Buildings progress report published on 10 October 20241. The change applied even where solar and storage were packaged with a heat pump1. The scheme provides grants and loans to domestic owner-occupiers in Scotland to install clean heat and energy efficiency measures1.
The report states that sustained rapid growth in loan funding for solar PV in 2023-24 had already led to a limit confining solar support to installations deployed alongside renewable heat, before the June change removed it altogether1. Home Energy Scotland's own terms and conditions, dated 5 June 2024, confirm that for applicants who received an application link after 6 June 2024, funding for solar PV and energy storage systems is no longer available, while those who received a link between 27 June 2023 and 6 June 2024 had until 31 July 2024 to submit an application for solar and storage as part of a package2. Consumer Scotland, in a report published 15 May 2025, said the scheme "now excludes funding for solar PV and battery storage technologies" and that from 6 June 2024 it would no longer provide new referrals for solar PV and energy storage systems, including electric and heat batteries3. Flexi-Orb likewise records that as of 6 June 2024 new referrals for these installations are no longer provided4.
The progress report also records that eligibility of self-builders was removed from the scheme from 1 August 20241, a date matched in the scheme's terms and conditions2. In 2023-24, before the change, the HES Grant and Loan scheme supported 3,368 solar PV measures and 3,216 battery storage measures, alongside 2,306 zero direct emission heating or biomass measures1. The scheme has been operating since September 2015 and has helped more than 39,000 households throughout Scotland1.
The trade body Solar Energy Scotland said interest-free loans for solar and energy storage were withdrawn in June "without notice"5, and in April 2025 described the sequence differently, saying Home Energy Scotland withdrew stand-alone loans for solar in the summer of 2023 and that a year later it announced it would no longer offer loans for solar panels or battery energy storage at all6. Up to £11,500 had been available in grants and interest-free loans to fit solar, battery and heat pump technologies together6.
"A further change from 6 June 2024 removed solar PV and battery storage from eligibility under the scheme, even when packaged with a heat pump."
Why it matters for households
For a Scottish owner-occupier, the scheme no longer offers grant or interest-free loan funding towards solar panels or a home battery, whether installed alone or with a heat pump1. What remains available under the scheme is grant funding for energy efficiency improvements and heat pumps, up to £7,500, or £9,000 with the rural uplift, with an optional interest-free loan of up to £7,500 alongside2. Eligible improvements listed by Flexi-Orb include boilers and heating systems, insulation, draught proofing and replacement of single glazing4. Households that install solar and storage without scheme support lose the loan route that spread the cost, and the loss of a battery also removes the option to store self-generated electricity for evening use, which Consumer Scotland links to energy independence and protection from power cuts for rural and remote consumers3. Solar Energy Scotland estimates that every £10 million allocated to interest-free loans would lead to solar and battery uptake by up to 1,000 households, saving each around £900 on annual energy bills5. It has not been reported whether any replacement funding for solar or batteries in Scotland has been introduced.
What happens next
Solar Energy Scotland wrote to First Minister John Swinney ahead of the Scottish budget on 4 December 2024 urging restoration of interest-free loans for residential solar and battery storage5. In April 2025 it wrote to Acting Minister for Climate Action Alasdair Allan MSP, noting that a Scottish Solar Vision announced in October 2023 remains unconfirmed6. The Scottish Government has said it is considering the implications for the HES Grant and Loan Scheme after publication of the updated Heat Pump Design Standard7.
Sources7 cited
- 4. Activities (policy and delivery) - Heat in Buildings: progress report 2024 - gov.scot, gov.scot
- Document template, homeenergyscotland.org
- Heat in Buildings - supporting the rollout of heat pumps and solar PV in Scotland (HTML) | Consumer Scotland, consumer.scot
- Home Energy Scotland Grant and Loan - Flexi-Orb | Flexible Energy Oversight Registration Body, flexi-orb.com
- Scottish budget should bring back solar loans • Solar Energy UK, solarenergyuk.org
- Scotland risks falling behind on clean heat • Solar Energy UK, solarenergyuk.org
- Low carbon heating in residential buildings - Energy Saving Trust, energysavingtrust.org.uk