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 However, this was undermined when interest-free loans for solar and energy storage were withdrawn in June this year, without notice.
“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” said SES chair Josh King in a letter to First Minister John Swinney, ahead of the Scottish budget on 4th December. “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. 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 percent of non-electrical heat in buildings to be directly supplied by heat pumps, heat networks and bioenergy by 2030, up from 4 percent 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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