Homeowners with a heat pump will no longer be able to qualify for funding for solar PV and battery storage installations
Solar PV and solar battery funding has been withdrawn by the Scottish Government(Image credit: Getty Images)
The Construction Industry Collective Voice (CICV) has expressed "serious concerns" over funding being withdrawn for solar panels and battery storage home upgrades.
The Scottish Government suddenly announced its decision to discontinue funding for the renewable technologies alongside heat pumps earlier this month.
The Scottish Government has been criticised over the decision with claims it could result in energy price rises, undermine Scotland's efforts towards a low-carbon future and stifle investment in the renewable energy sector.
What funding has been withdrawn?
Previously, Home Energy Scotland offered up to £11,500 in grants and interest-free loans for air source heat pumps, solar installations and solar batteries.
The Home Energy Scotland Grant and Loan provided these packages to create energy-efficient homes but earlier this month it was announced: “Funding for solar PV and energy storage systems (solar batteries) will no longer be offered through the scheme. From today, no new customers will be able to apply for solar PV and battery storage, even when installed together with a heat pump.”
Applications submitted before June 6, 2024, will be processed as usual and existing funding agreements remain unaffected.
The Home Energy Scotland Grant and Loan offered packages to Scottish homeowners for a heat pump, solar panels and solar batteries(Image credit: Duracell)
Decision 'undermines' renewable sector
The withdrawal of funding for solar and battery installations has sparked a significant backlash from industry experts.
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Alan Wilson, chair of CICV, a coalition of 29 professional and trade bodies within the UK construction sector, highlighted the detrimental impact this decision could have on Scotland's transition to low-carbon energy.
Wilson emphasised that solar PV and solar batteries are essential for economic stability and environmental sustainability. He warned that excluding these technologies from funding could discourage investment and innovation in Scotland’s renewable sector.
Wilson stated: “A stable policy environment is crucial for businesses to invest in low-carbon technologies. The current policy fluctuation risks stalling Scotland’s progress towards its environmental goals and undermining market confidence.”
He also pointed out the adverse effects on training and skills development in the renewable sector. Frequent policy changes make it difficult for businesses to commit to training and investment.
Additionally, he stated the withdrawal of funding could have severe implications for Scottish households, particularly those in vulnerable economic positions, by making the transition to renewable energy sources too expensive.
People with heat pumps may now need to pay more
Helen Melone, head of heat and solar at Scottish Renewables noted that the funding cut could leave homeowners with heat pumps more vulnerable to high energy bills.
Melone stated: “Our concern is that this impacts on the ability of households to mitigate their own energy bills. It’s concern over affordability for households.
“This will impact the people who would want to put solar panels on their roof as a way to stop themselves being hit by big, sudden price shocks as happened recently with energy bills went very high.”
This decision, according to industry experts, threatens to undermine Scotland’s low-carbon transition strategies and could erode public trust in these initiatives.
Government's response
A Scottish Government spokesperson said its commitment to ending Scotland’s contribution to global emissions is "unwavering" and claimed emissions in Scotland have already been cut in half.
They revealed to Homebuilding & Renovating that they are "well positioned to continue leading on climate action that is fair, ambitious and capable".
They added: "We recognise that solar power has an important role to play in decarbonising our energy supply and supporting a just transition to net zero. However, we cannot meet our climate targets without ending the use of polluting heating systems in our buildings and moving to clean heat alternatives.
“We are seeing sustained demand from households seeking to decarbonise heat in their homes. Last year the Scheme supported people to install more than 2000 heat pumps - a 17% increase compared to the same period the previous year – and more than 1500 energy efficiency measures.
“Given finite resources, we are now therefore prioritising our support through the Scheme on the installation of these measures, which will maximise the decarbonisation of a home’s heating and reduce heat demand, and which would be less likely to happen without government support."
News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.
