THE Scottish Government has been criticised for its “confusing” stance on solar panel funding which appears to have been silently scrapped as ministers are being accused of telling Parliament it was still being supported.
Energy Saving Trust Scotland appears to have pulled both solar panels and battery storage financial support from the government-funded Home Energy Scotland (HES) grants and loan scheme at the start of June.
HES was offering up to £11,500 in grants, plus interest-free loans, covering both air source heat pump, solar and battery installation.
However, it appears HES stopped accepting applications for funding for solar panels and battery installation for existing homes from June 6, and new buildings from August 1.
Those with funding referrals can still apply to HES, but there is a July 31 deadline when all applications will no longer be accepted.
On the HES website, it stated: “Changes have been made to ensure that the scheme stays within its budget”.
It added it will be “focusing funding on improvements that will maximise the decarbonisation of heating and the reduction of heat demand in homes.”
Scottish Greens co-leader Patrick Harvie (below) has said the position of the Scottish Government regarding the funding is “increasingly confused”.
Harvie pointed out that last week the Minister for Climate Action, Gillian Martin, appeared to tell the Scottish Parliament that some solar projects were still being funded when questioned on the topic.
He also added it appears the Scottish Government has ended its backing of the HES grants and loan scheme, despite having told parliament it was still being supported.
He said: “The Scottish Government's position on solar is increasingly confused.
“When solar and battery funding were tied to zero carbon heating some people were disappointed at the restriction, but it did make sense in terms of getting emission reductions without reducing solar deployment.
“Last week, the Minister for Climate Action, Gillian Martin, appeared to tell the Scottish Parliament that some solar was still being funded alongside zero-carbon heating. But now they appear to be saying that they had already stopped taking new applications.
“So, at the same time as finalising an energy strategy which is supposed to set an ambition for a big increase in solar power, the Government appears to have ended support for it altogether, while having told Parliament that it was still being supported.
“There remain big questions about how the Scottish Government expects to achieve its solar ambition alongside heat decarbonisation - it mustn't be a choice of only doing one or the other.”
According to the Scottish Government, the reason for HES no longer accepting applications for funding is cuts to the capital block grant.
In a statement, a spokesperson said almost 9% of funding will be cut over five years, which will equate to a loss of more than £1.3 billion.
It also said its financial transactions allocation has also been cut significantly, with a reduction of around £290 million, which it said adds to the “significant challenge” it already faces.
A Scottish Government spokesperson said: “The Government's commitment to ending Scotland’s contribution to global emissions as soon as possible, and by 2045 at the latest, is unwavering.
“With emissions in Scotland already nearly cut in half, we are well positioned to continue leading on climate action that is fair, ambitious and capable of rising to the emergency before us.
“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.
“Based on the latest forecasts, our capital block grant is being reduced and is now expected to be cut in real terms by nearly 9% over 5 years – a cumulative loss of over £1.3bn. Alongside the real terms cuts to our capital funding, our FT allocation has also been cut significantly, with a reduction of around £290m – or 62% in 2024/25 when compared to 2022/23 - adding to the significant challenge we already face.”
The National understands that funding by HES for heat pumps is unaffected and is still available.
