Financial Support for Battery Storage: What Homeowners in Scotland Need to Know
Date added: Thu 27 Mar 2025
Support for Battery Storage: What Scottish Homeowners Should Know
As the demand for energy independence grows and electricity costs remain volatile, more homeowners across Scotland are turning to battery storage as a powerful addition to their renewable energy systems. Whether you're looking to maximise the return on your solar investment, protect yourself from rising tariffs, or gain greater control over your energy usage, battery storage offers a smart, future-proof solution. That said, we understand that the initial investment can be a significant consideration. The good news? There are several financial incentives and support schemes currently available to help make battery storage more accessible and affordable—especially if you're based in Scotland. Here’s what you need to know.
0% VAT on Battery Storage – A Timely Opportunity
One of the most impactful cost-saving measures available for battery storage in 2025 is the UK Government’s 0% VAT incentive. As of 2024, homeowners no longer pay VAT on the purchase or installation of battery storage systems when installed alongside new or existing solar PV. This applies whether you're installing a full solar and battery system or retrofitting battery storage to enhance your current setup. For context, on a typical £8,000 battery system, this exemption represents a saving of £1,600, which is an immediate reduction in upfront costs and a significant improvement in return on investment. With this scheme confirmed until at least 2027, homeowners have a limited window to take advantage of a VAT-free installation before potential changes to policy or rising product costs come into play.
The Smart Export Guarantee (SEG) – Monetise Your Excess Energy
Battery storage doesn’t just reduce grid reliance but it can also become a source of income. The Smart Export Guarantee (SEG) provides another opportunity for homeowners to maximise the financial benefits of battery storage. Through the Smart Export Guarantee (SEG), homeowners with solar and battery systems can earn payments for any unused electricity they export back to the grid. While SEG rates vary between suppliers, the most competitive tariffs offer up to 20p per kilowatt-hour—turning surplus energy into a revenue stream. Combined with a well-sized battery, homeowners can strategically store and export energy when rates are highest, boosting their earnings while minimising the amount of electricity they need to buy from the grid. It's a smart way to make your energy system work harder for you, particularly during periods of peak pricing. To learn more about load shifting, head over to our YouTube channel, where we delve into the details of how it works and its benefits.
Government Grants and Loans
Earlier last year, Home Energy Scotland closed applications for grant and loan funding for Solar PV and battery storage—a significant setback for many homeowners seeking to invest in renewable technology. However, with the new financial year approaching and continued lobbying from industry leaders such as Solar Energy Scotland, there is hope that funding may soon be reinstated to support the UK’s wider Net Zero goals.
In the meantime, we recommend visiting the Home Energy Scotland website and using their postcode funding checker to explore what support may be available in your area. Some local councils currently offer grant funding and eligible households may also be able to access assistance through the Warmer Homes Scotland scheme, which can contribute towards battery storage installations. While these options are subject to strict eligibility criteria, it is always worthwhile to check what support you may qualify for.
Why Battery Storage Is a Smart Investment—Now and for the Future
Beyond the financial incentives, battery storage provides tangible, long-term benefits for any energy-conscious homeowner. By storing solar power generated during the day for use in the evening, when electricity prices are highest, you avoid peak-rate tariffs and reduce your dependency on the grid. This becomes even more powerful when combined with flexible energy tariffs or time-of-use pricing, allowing your system to automatically charge and discharge based on the lowest rates available.
Additionally, battery storage enhances energy security. During power outages, a properly configured battery system can keep essential appliances running, offering peace of mind for families in both urban and rural locations. As electricity infrastructure faces increasing pressure, this level of resilience is becoming a priority for many households. Homes with battery storage and solar are also proving more attractive on the property market. Energy-efficient homes are in high demand and potential buyers are increasingly drawn to features that reduce running costs and support a low-carbon lifestyle. Installing a battery system not only lowers your energy bills today but it may also increase your home’s value tomorrow.
Let’s Build Your Energy-Independent Future
At The Natural Energy Company, we believe in making clean, cost-effective energy accessible for every home. By combining the benefits of battery storage with available incentives like 0% VAT, Smart Export Guarantee earnings and government-backed grants, there has never been a better time to invest.
If you’re exploring battery storage options or looking to upgrade your solar setup, our team is here to help. We’ll guide you through the best solutions for your home, calculate potential savings and ensure you make the most of the financial support available.
Get in touch today for a tailored consultation and take the next step toward a more sustainable, self-sufficient home energy future.