CICV responds to Scottish Gov discontinuing solar PV grant and loan scheme

The Construction Industry Collective Voice (CICV), a coalition of 29 professional and trade bodies within the UK construction sector, has responded to the Scottish Government’s decision to discontinue funding for solar photovoltaic (PV) and battery storage under the Home Energy Scotland Grant and Loan scheme, voicing concerns regarding the potential setbacks this poses to Scotland’s low-carbon transition efforts.

Last week the Scottish Government announced that the Home Energy Scotland Grant and Loan would no longer provide new referrals for solar PV and energy storage systems, including electric and heat batteries.

If you received your referral link between 27 June 2023 and 6 June 2024, you can still apply for funding to install solar PV and energy storage systems until 31 July 2024.

Those building their own homes will no longer be able to submit an application to the Home Energy Scotland Grant and Loan, regardless of the types of improvements, starting from 1 August 2024. Applications submitted prior to 1 August 2024 will be processed as normal.

These changes have been made to ensure that the scheme stays within its budget, while focusing funding on improvements that will maximise the decarbonisation of heating and the reduction of heat demand in homes.

The scheme remains open to applications for other improvements, including clean heating systems and energy efficiency improvements.

Alan Wilson, chair of the CICV, said: “Solar PV and battery storage are not just about clean energy; they represent a commitment to long-term economic stability and environmental stewardship. Their exclusion from funding signals a worrying shift in policy that will undoubtedly discourage investment and innovation in Scotland’s renewable sector.

“A stable policy environment is essential for businesses to commit resources to developing, installing and maintaining low-carbon technologies. The current policy fluctuation risks stalling Scotland’s progress towards its environmental goals and shaking the confidence of market investors and the public alike.

“It will also significantly affect the training and skills development businesses within the renewable sector undertake. After numerous false starts with renewable technology funding, installers are increasingly wary of committing to training when support is so frequently withdrawn. Businesses need clarity and certainty to invest effectively, and this unpredictability severely hampers their ability to do so.

“This decision also directly and profoundly impacts Scottish households, especially those in more vulnerable economic positions. Without financial support, the initial cost of transitioning to renewable energy sources becomes prohibitive for many. This not only slows down individual progress towards energy independence but also widens the socioeconomic divide in access to clean technology. Ensuring all communities can participate and benefit from Scotland’s energy transition is crucial for its overall success and social equity.

“Moving forward, we must ensure continuity and consistency in our approach to realise our low-carbon ambitions fully. The abrupt end to funding these critical technologies could undermine the trust consumers and the marketplace has in all the nation’s low-carbon transition strategies. As always, we advocate dialogue to find a way forward rather than undermining Scotland’s sustainable future.”

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