Solar Energy Scotland
23 October 2024
Scotland’s solar industry has today urged the Scottish Government to restore access to interest-free loans for residential solar power and battery energy storage systems to help the nation accelerate delivery on its targets for low carbon homes. Support for households to generate and store their own energy should be reinstated, after being cut this year, says trade body Solar Energy Scotland (SES).
Scotland has led the way in supporting home energy efficiency in recent years, with Home Energy Scotland being one of the most effective mechanisms for tackling fuel poverty and decarbonising homes. However, this was undermined when interest-free loans for solar and energy storage were withdrawn in June this year, without notice.[1]
In a letter to First Minister John Swinney, ahead of the Scottish budget on 4 December, SES chair Josh King said: “We fully understand the budgetary pressures faced by the Scottish Government and acknowledge that grant funding has been refocused on decarbonising heat through measures such as heat pumps. However, solar and storage technologies are unique in their ability to offer quick, tangible energy savings for households.”
“Solar and battery technologies are mature, proven and easily understood by consumers, making them ideal for government-supported loans, rather than cost-constrained grants,” he added.
Commenting on the exchanges this week between Scottish and UK governments on the need for investment in infrastructure, Josh King also added, “Investment to accelerate renewable energy in residential properties can not only reduce bills, it can create significant growth in the clean energy economy. Providing interest free finance seems a very low cost and straightforward measure. This would open up access to low-cost energy for thousands of households and could also be targeted at those living in fuel poverty. This is a huge opportunity that both governments should be working on. The Scottish Government can also take a lead if it wants to.”
The 2021 Heat in Buildings Strategy set a provisional target for at least 22% of non-electrical heat in buildings to be directly supplied by heat pumps, heat networks and bioenergy by 2030, up from 4% at the time.[2]
Returning access to interest-free finance would not only make a dramatic contribution to meeting this objective, by making heat pumps more accessible and affordable by lowering energy bills for households. It would also do be a “minimal cost solution compared to the grants available for heating and fabric measures,” the letter notes, while also reducing the need to upgrade power networks.
By Solar Energy Scotland’s calculations, every £10million allocated to interest free loans, all of which would be repaid, would lead to the uptake of solar and battery by up to 1,000 households, saving each in the region of £900 on their annual energy bills.
[1] Ditching home solar loans makes no sense amid cost of living crisis
[2] Heat in Buildings Strategy – achieving net zero emissions in Scotland’s buildings
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