Solar Energy UK said that the announcement was not accompanied by a press release or subject to prior warning, with no consultation or grace period offered. Image: Kelly (Pexels).
Scotland’s interest-free solar home loans scheme has been ended abruptly, according to Solar Energy UK.
The scheme covered residential solar photovoltaic (PV) and battery energy storage systems. Solar Energy UK said that “This decision will slow deployment, lower the pace of decarbonisation and tend to restrict everyone but the wealthy and middle-class from enjoying the benefits of solar power.”
Solar Energy UK said that the announcement was not accompanied by a press release or subject to prior warning, with no consultation or grace period offered.
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Interest-free loans for home solar power scrapped by Scottish Government?
The move has been criticised as 'mind-boggling' while energy bills remain high.#Scottishenergysaving pic.twitter.com/GBkpO1k8kE
— ScottishEnergySaving (@ScotlandEnergy) June 28, 2023
This means that Home Energy Scotland’s loans will now only be available “as part of a package together with a heat pump or high heat retention storage heaters. As a result, applications for solar PV and/or energy storage systems only will no longer be eligible,” according to the Home Energy Scotland website.
Interest rates have recently been raised to 5%, and Home Energy Scotland said that “this change is necessary to ensure that the scheme stays within its allocated budget and that available funding is targeted at installations which will maximise decarbonisation of heat or reduce heat demand.”
Solar Energy Scotland’s senior policy advisor, Emily Rice, added: “We are both shocked and puzzled by this extraordinary and regressive move, which needs urgent clarification. Restricting access to a key decarbonisation technology flies in the face of meeting net zero by 2045 and directly contradicts the Scottish Government’s recognition of the role of solar in decarbonising our energy system.”
“This was an entirely unexpected and inexplicable move. Everyone wants to see vast increases in residential solar power. Doing something like this makes no sense, particularly after such warm words on solar from Holyrood in recent months,” said Gemma Grimes, Solar Energy UK’s Director of Policy and Delivery.
Solar is the most popular form of renewable energy in the UK according to the DESNZs Public Attiudes Tracker, and the ministry has just released figures showing that the total installed capacity of solar in the UK has passed 15GW in Q1 2023.
Solar Energy Scotland said it would meet with the Energy Saving Trust, other trade bodies and Scottish Members of Parliament, as well as seeking an urgent meeting with Scottish government officials.