Solar energy industry urges Government to bring back solar loans

Scotland’s solar industry has 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.

As reported by Solar Energy UK, 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 However, this was undermined when interest-free loans for solar and energy storage were withdrawn in June this year, without notice.

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.”

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.

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.

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