Scottish Government Grants For Solar Panels

Solar panel grants are no longer available from the Scottish Government, but it does offer interest-free loans to help homeowners install solar panels.

Once you install solar panels, you'll be able to earn money from the electricity you generate through the Government Feed-in Tariff.

You can expect to earn up to £7,300 over 25 years from your solar panels, making them a worthwhile investment.



Can You Get Government Funded Solar Panels in Scotland?

The short answer: unfortunately not.

Up until 2010, the Scottish Government backed the Energy Savings Scotland Home Renewables Grant. This scheme awarded homeowners a generous sum of money for installing solar panels; successful applicants could receive up to 30% of the cost of installations worth up to £4,000. However, since this grant was scrapped, the only incentive offered by the Scottish Government is an interest-free loan that supports homeowners with financing the cost of solar panels.


Home Energy Scotland Loan

Home Energy Scotland provides Government funded loans to homeowners looking to make energy-efficient and money-saving improvements to their property. This includes the installation of renewable energy systems, like solar panels.

Through Home Energy Scotland, you can apply for an interest-free loan of up to £5,000 to install solar panels on your property, which is repayable over a maximum period of 5 years.

To apply for the funding, you must speak with Home Energy Scotland directly who’ll carry out eligibility and credit checks before issuing you with a written loan offer. Once you’ve received this, you’ll have 6 months in which to install solar panels and claim your funding.

You can contact Home Energy Scotland for free on 0808 808 2282.

Good to know: loans from Home Energy Scotland are limited, so funding is given on a first come, first served basis.


Don’t forget that once you’ve installed solar panels on your home, you’ll be eligible for on-going payments from the Feed-in Tariff.



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Feed-in Tariff Scotland

The Feed-in Tariff (FiT) is a UK Government-backed scheme that rewards homeowners with cash payments for generating electricity from renewable technology. You’ll earn money from:

• Every kWh of electricity produced by your solar panels (Generation Tariff)

•Every kWh of electricity produced by your solar panels that you give back to the National Grid for other people to use (Export Tariff)

You’ll receive money from the FiT for 20 years which should make you a healthy return on your investment - especially because all the money you get is tax free and index linked. When payments from the FiT stop after 20 years, you’ll still be able to save money on your energy bills for the remaining lifespan of your solar panels. It’s estimated that you can earn between £1,850 and £7,300 over 25 years from solar panels, depending on how many you have installed.


Cash in Before it’s Too Late

The UK Government has announced that it’s ending the FiT in April 2019, meaning you’ve got less than a year to sign up to the scheme. Once your solar panels are registered for the FiT, you’re guaranteed payments for 20 years even after it’s scrapped.

Bear in mind that the Feed-in Tariff rates for new applicants do get reduced every 3 months, meaning the amount you can earn from your solar panels is also reduced. If you’re considering getting solar panels for your home, act fast to lock in the current FiT rates and avoid any future reductions.

The current Feed-in Tariff rates for April to June 2018 are:

Generation Tariff Rate
Export Tariff Rate
4.01p per kWh of electricity
5.03p per kWh of electricity


Remember: to apply for the FiT, you must have your solar panels installed by a Microgeneration Certificate Scheme (MCS) accredited installer. Your home will also need to have an Energy Performance Certificate (EPC) rating of D or above to qualify for the FiT rates above; any lower, and you’ll qualify for lower FiT rates (and so the amount you’ll earn will be reduced).


Earnings from the Feed-in Tariff

You’ll receive money from the Feed-in Tariff for 20 years once you’ve registered your solar panels for the scheme. The table below shows you what you can expect to earn in a year if you were to install a 4kW solar panel system (made up of 16 solar panels) worth £6,000. Calculations are based on the current Feed-in Tariff rates:

Source of Income
Earnings
Generation Tariff
£145
Export Tariff
£91
Energy Bill Savings
£72
Total Per Year
£308

*based on installation on a south facing roof with no shade and a monthly household electricity bill of £50


And this is how much you can earn over 20 years for the same sized solar panel system:

Year
Earnings
Profit/Loss
1
£308
-£5,692
5
£1,540
-£4,460
10
£3,080
-£2,920
15
£4,620
-£1,380
20
£6,160
+£160

*based on installation on a south facing roof with no shade and a monthly household electricity bill of £50


If you want to find out more about the price of solar panels and how much you can earn from the Feed-in Tariff, visit our solar panel cost page.

Find Out How Much Solar Panels Would Cost for Your Home



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