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Renewable Technology Funding in Scotland

Date added: Fri 14 Feb 2025

 

As Scotland continues to lead the way in renewable energy adoption, 2025 brings new and ongoing funding opportunities to help homeowners transition to solar panels, battery storage, and heat pumps. Whether you're looking to reduce energy costs, lower your carbon footprint, or future-proof your home, these grants and loans can make switching to renewables more affordable.

 

Here’s a breakdown of the key funding options available in 2025:

 

1. Home Energy Scotland Grant & Loan

The Home Energy Scotland Grant & Loan is one of the most significant funding schemes available, offering financial assistance for heat pumps and other energy efficient upgrades:

  • Heat Pumps – Up to £7,500 grant, plus an interest-free loan of up to £7,500. Rural or island properties can receive an additional £1,500 grant, increasing the total to £9,000.

  • Energy Efficiency Measures - Grant funding covers up to 75% of energy efficiency measures, including insulation, with a maximum grant of £7,500.

 How to Apply: Visit Home Energy Scotland for more details.

 

2. Zero VAT on Solar & Battery Storage

The UK government has extended the 0% VAT rate on solar panels and battery storage installations until March 2027, making it more affordable to invest in renewable technology.

  • How it helps: Eliminates the standard 20% VAT, reducing installation costs.

  • Eligibility: Available to all homeowners installing energy-saving technology.

 

3. Smart Export Guarantee (SEG)

The Smart Export Guarantee (SEG) allows homeowners with solar panels to sell excess electricity back to the grid, providing an additional income stream and boosting return on investment.

  • Earnings depend on your energy provider’s SEG tariff – so it's worth shopping around for the best rate!

  • Learn more: Ofgem Smart Export Guarantee.

 

4. Energy Company Obligation 4 (ECO4) Scheme

The ECO4 scheme helps low-income households make energy efficiency improvements, including renewable energy system installations.

  • Who qualifies? Homeowners on government benefits or with lower incomes.

  • What’s covered? Energy efficiency upgrades, including insulation, solar panels, and heat pumps.

Check eligibility: Visit the UK Government website.

 

5. Warmer Homes Scotland Programme

Designed to help households struggling with energy bills, this scheme provides free or subsidised renewable energy installations and energy efficiency improvements.

📍 Apply here: Warmer Homes Scotland Scheme.

 

With these grants, loans, and incentives, 2025 is the perfect time to invest in solar panels, battery storage, and heat pumps. Whether you’re looking for financial support, lower installation costs, or ongoing energy savings, Scotland offers multiple funding options to help make renewable technology more accessible and affordable.

 

Interested in making the switch? Get in touch today to find the best renewable energy solution for your home!