Believe it or not, Scotland is just as worthy of solar panels as the rest of the world thank you very much.
Installing solar in Scotland is extremely popular with Microgeneration Certification Scheme (MCS) data indicating that 142,000 installs exist to date. That’s at least 141,999 more than Scotland has monsters in lakes.
A major reason for this uptake has been the Scottish government's efforts to offer incentives and support to homes wanting to adopt solar.
This is all due to the government's goal of reducing carbon emissions by 80% by 2050, hence why Scotland is now on course to reach a combined domestic solar output of 1.5 billion watts by 2050.
In this guide, we will explore the average costs, factors that can impact the final cost, available funding from the Scottish government and our tips on vetting installers.
PS We offer MCS-certified solar panel installation nationwide. Simply answer these questions, get your fixed price and arrange your free design.
Is Solar Worth It In Scotland?
Yes, solar can reduce energy bills anywhere in the UK, including Scotland. Or perhaps we should say even in Scotland.
In fact, you can potentially reduce your energy consumption via the grid by as much as 50% on average.
A typical 3.5 kW solar array in Scotland will cost between £5,000 and £10,000 and generates 2,370 kilowatt hours (kWh) of electricity annually.
The rewards are greatest if you can consume as much of the solar energy you create, which you can increase further by adapting your behaviour and with the help of a storage battery. Turning off normal lights and sticking with candles after sunset does a lot for your consumption.
However, it's not all bad news, since you do have the option to sell your unused energy via the Smart Export Guarantee (SEG).
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How Many People Have Solar in Scotland?
According to the most recent data from the Microgeneration Certification Scheme (MCS) around 142,000 homes in Scotland have installed solar panels to date.
Even more impressive is the speed of change - in 2023, solar panels in Scotland saw over 13,000 installs — a rapid increase of around 30% compared to last year.
For perspective, in 2009, only 24 homes in Scotland had solar panels. Back then, Scotland had more castle ruins than homes with solar. The numbers have exploded since then.
When Will You Break Even?
The breakeven point is the point at which your solar panels will have paid for their initial installation and product costs through savings - not because you’ve kept asking.
On average it takes somewhere between 10 and 15 years.
However, the exact breakeven point can change wildly depending on a variety of factors, including:
The amount of money you paid for the solar array.
The quality of the system - e.g. a low-light optimised system using microinverters and bi-facial panels is likely to outperform a standard install significantly.
The amount of electricity you consume annually.
The current price of electricity.
Prioritising self-consumption e.g. limiting the amount of energy you draw from the grid as much as possible.
Whether you utilise battery storage or not.
How much do you save and/or earn from the Smart Export Guarantee (SEG).
Whether you stick with normal hardware or go for 18-karat gold.
Therefore, in order to calculate how long it will take to pay off your solar you should make yourself aware of the above variables and how they play a role in calculating the break-even point.
Related solar guides:
What Funding for Solar is Available in Scotland?
The Home Energy Scotland grant/loan is available to residents of Scotland who meet the eligibility criteria and want to make "energy improvements" to their homes.
This includes the installation of solar panels and solar battery storage systems. It doesn’t include getting money for finally closing your windows in winter.
The maximum amount available is £6,000, which could potentially cover the total cost of a solar array installation.
The loan is completely interest-free and is repayable over a five-year period (if you borrow less than £5,000) or 10 years (if you borrow £5,000 or more).
All residents of Scotland can apply for the funding, but not at the same time. That’d be chaos.
You can call Home Energy Scotland on 0808 808 2282 to find out more and to start the process.
Are there any grants for solar panels available?
Yes, as well as the Home Energy Scotland Loan - there is the Energy Company Obligation Scheme (ECO4), as well as the Community and Renewable Energy Scheme (CARES).
The ECO4 scheme could provide as much as £14,000 for eligible homes to make energy savings upgrades. That’s £14,000 you don’t have to spend (or more likely, that you can spend on something else). You’ll finally have the means to get a new hobby.
There are some other schemes worth being aware of too and although these may not assist you with the initial costs, they can help you offset the costs in the medium to long term.
Grant/discount: | How much can you save/earn? | Who can apply? |
Smart Export Guarantee (SEG) | £159 per year | Small renewable generators e.g. solar owners |
ECO4 Scotland | Up to 100% of the cost | Energy-inefficient households on certain benefits |
VAT discount | £393 | Solar panel buyers get it automatically |
PPA schemes for social housing | Thousands of £s | Your landlord |
Green Homes Grant (No longer active) | £5,000 or £10,000 | All homeowners in England |
Renewable Heat Incentive (No longer active) | 10.92p per kWh you produce | Owners of biomass boilers, heat pumps, and solar thermal |
Feed-in Tariff (No longer active) | 4.21p per kWh you produce & 5.99p per kWh you send to the grid | Owners of solar panels, wind turbines, & micro-CHP |
Energy Company Obligation 4 (ECO4) Scotland
The fourth rendition of the Energy Company Obligation was launched in April 2022 as a replacement for ECO3, hence its new name - ECO4. We have an inkling about what they may call a next replacement, but we’re not telling you…
It will run until the end of March 2026.
But what is ECO4 exactly and what does it offer?
ECO4 is a government scheme that seeks to enhance the energy efficiency of vulnerable and low-income households.
ECO4 will run until March 2026, aimed at helping vulnerable and low-income households to imrove the efficiency of their homes.
It only applies to Great Britain, so England, Scotland, and Wales.
Moreover, the Office of Gas and Electricity Markets or Ofgem administers the scheme. It keeps them off the streets.
Another element of ECO4 is that local authorities must apply for funding via Ofgem before passing on this funding to households in the form of projects to improve the energy efficiency of these households.
Households who benefit from ECO4 will likely see their annual energy bills reduced by somewhere in the region of £300 to £1,600.
To be eligible for ECO4, you must meet the following criteria:
Your home is low-income, vulnerable, or suffering from fuel poverty.
Your household has an energy efficient rating between D and G. *
Beyond that, you must either own and live in your home or occupy rented private accommodation.
*ECO4 aims to bring low energy efficiency households up to a rating of C.
Moreover, all-electric properties that use a District Heat Network or biomass boilers are not eligible for the scheme.
If you are currently receiving government benefits, you may not be eligible. But don’t lose hope just yet.
However, if you are receiving government benefits and your home is still classed as low-income, it may still be possible to apply for ECO4 as part of the ECO4 LA Flex.
LA Flex stands for Local Authority Eligibility Flexibility.
As you might guess, this gives local councils the freedom to be more flexible when it comes to funding. Talk about stretching your funding…
Basically, it’s a way for local councils to support households that are not eligible for specific forms of help based on the pre-existing eligibility rules but who are struggling all the same.
In other words, it’s designed to allow for common sense where a council can see that a household is struggling and could benefit greatly from a given form of support.
This would especially make sense if the reasons for your lack of eligibility are down to minor details or a technicality. With rules like that, Kafka’s career would have looked entirely different.
Still learning about solar panels? Explore our helpful guides on various topics, including solar panel grants, payback periods, the mechanics of solar energy, determining the number of panels you need, and solar car charging solutions.
Community and Renewable Energy Scheme
The Community and Renewable Energy Scheme was launched by the Scottish government in a bid to help assist local communities in adopting renewable forms of energy, including solar panels.
The scheme awards funding to eligible charities and organisations and can potentially fund up to 80% of the total cost of solar installation.
To apply for funding, you can do so via the CARES project portal. You will need to meet the eligibility criteria and indicate the type of solar system you want to have installed, along with the solar quotes you have received for the project.
0% VAT Scheme for Solar Panels
As of April 2022, households throughout the UK with solar panel installations can avail of 0% VAT on the installation and supplies needed to fit a solar panel array. That’s most people’s favourite tax rate.
This VAT-free approach will last until 2027. At that point, it will go back up to 5% (which is still quite a low rate).
However, the zero VAT eligibility rules are less stringent than was the case when 5% VAT was applied.
You must pay for the installation and supplies simultaneously (i.e., you’d need to hire a company that is both selling you the panels and fitting them for you).
What’s more, you can include other relevant goods or services along with the solar panel's installation, once it occurs at the same time. After all, if you don’t have a roof yet, you can’t put any solar panels on it.
However, most of the work undertaken during this time period has to relate to reducing your energy usage from the national grid (and adding a roof is a great way to increase insulation).
Did you know we offer solar panel installation throughout the UK? That includes:
Explore a Solar Case Study: Check out an insightful Q&A session featured in one of our detailed case studies on domestic solar panels. Hear directly from a Heatable customer in the UK and gain valuable perspectives on their experience here.
The image above shows a 23-panel solar installation, carried out by the MCS-certified solar team at Heatable, featuring the REA Fusion2 solar panels.
Can you get free or subsidised solar panels in the UK?
Potentially yes, you can apply for funding and may be eligible for help with the costs of a solar panel installation via the ECO4 scheme.
Explore what solar panel grants and funding are currently available in our comprehensive solar grant guide here.
Next Steps For Your Solar Journey:
When planning to install solar panels for your home, there are several important factors to consider. Make sure to refer to the following guides to help you make informed decisions:
To dive deeper into these topics, head over to our advice section, check out our YouTube channel for informative videos, or read a customer case study to see how others have benefited from their solar installation.
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