Home Energy Scotland Solar Loan in 2026
The Home Energy Scotland Grant and Loan Scheme removed solar PV and battery funding in June 2024. A separate UK Warm Homes Loan Scheme has since been announced. It is lender-led finance, not the return of the HES solar loan; check approved product availability and terms before relying on it.
If an offer names the old HES solar loan, check it carefully. Qualifying VAT relief, eligible export credit and finance have different purposes and conditions. For an announced loan programme, confirm that an approved lender product is available and assess its actual terms.
Key facts
- HES removed solar PV and battery funding from 6 June 2024; the separately announced Warm Homes Loan Scheme should not be confused with it
- Home Energy Scotland still funds energy-efficiency work (up to £7,500) and clean heating like heat pumps (up to £7,500), each with a £1,500 rural uplift. Call 0808 808 2282 to check what your home qualifies for.
- 0% VAT on solar installations still applies, and is due to run until 31 March 2027.
What happened to the Home Energy Scotland solar loan?
For several years, Home Energy Scotland offered an interest-free loan, alongside a smaller grant, that homeowners could put toward solar panels and battery storage. That funding line was withdrawn from 6 June 2024.
The HES solar loan has not been reinstated. The UK Government has separately published Warm Homes Loan Scheme rules covering eligible UK properties, including Scotland. An announcement or lender application programme is not the same as a loan you can already obtain.
This matters if you started looking into solar a few years ago and are only now getting round to it. Quotes, adverts and even some installer websites written before June 2024 sometimes still mention the loan simply because nobody has gone back and updated them. Worth bearing in mind if a figure you remember seeing does not match what you are quoted today.
What does Home Energy Scotland still fund?
Home Energy Scotland has not disappeared, it has simply narrowed its focus. The current funding covers two areas: energy-efficiency improvements to your home, and clean heating systems such as heat pumps.
Energy-efficiency measures can be funded up to £7,500, and clean heating up to £7,500, each with an extra £1,500 available if you live rurally, taking the combined maximum to £18,000. Solar PV and battery storage sit outside both categories now.
In practice this means a heat pump or loft and wall insulation could still be part-funded even though the solar panels going on the same roof would not be. Some households find it makes sense to look at heating and efficiency support through Home Energy Scotland separately, and solar through the routes covered below, rather than expecting one scheme to cover everything.
Every home is different, so the honest next step is to ring Home Energy Scotland directly on 0808 808 2282 and ask what your specific property qualifies for before assuming either way.
What Home Energy Scotland still funds, by category
- Energy efficiency£7,500
- Clean heating£7,500
- Rural uplift (each)£1,500
- Combined maximum£18,000
Covers energy-efficiency and clean heating only. Solar PV and battery storage sit outside both categories.
What still cuts the cost of solar in Scotland?
With the loan gone, three things still make a real difference to what you pay for solar in Scotland this year.
0% VAT until March 2027
Solar panel and battery installations are still VAT-free, and that is scheduled to continue until 31 March 2027, after which 5% VAT is due to apply. On a typical Scottish install this is a meaningful saving in itself. We have broken down exactly what that means in pounds in our guide to the VAT deadline.
Export payments
If your system generates more electricity than your home uses, you can usually be paid for what you export back to the grid through the Smart Export Guarantee. Rates and conditions vary a good deal by supplier, so we have kept that detail out of this post and cover it properly in its own guide once it is ready.
Finance options
Spreading the cost through a finance arrangement remains available for solar and battery installs, subject to status and affordability checks. It is worth asking about alongside your quote rather than assuming a grant is your only route in. See our finance page for what is currently on offer.
Watch out for "the government solar loan" cold callers
Because the HES loan ran for years and was widely advertised, some cold callers and door-knockers are still using the phrase "the government solar loan" or "the Scottish Government grant" as an opener, sometimes over two years after it closed.
The tell-tale signs: pressure to sign on the day, a claim that a grant "covers most of the cost" without naming the actual scheme, or a request for a deposit before any survey has taken place. Home Energy Scotland does not cold-call households selling solar, and it does not sell installations itself.
A useful question to ask on the phone is simply which scheme, by name, the caller means. If they cannot give you a scheme name that still exists today, or they get vague when pressed, that is your answer.
If you get a call like this, the safest move is to hang up and check directly with Home Energy Scotland on 0808 808 2282, or with an installer you have chosen yourself, rather than the one on the phone.
What this means for you
Distinguish the closed HES solar loan from the separately announced Warm Homes Loan Scheme. Before budgeting for any support, check the scheme, eligibility and the actual lender offer.
What is genuinely still working in your favour in 2026 is the 0% VAT rate, export payments for surplus generation, and ordinary finance to spread the cost. Those three, not a government loan, are what make solar affordable for most Scottish households right now. Schemes change, so it is worth verifying current funding directly before you commit.
Still weighing up whether any funding applies to your home? Take a look at what current schemes actually cover before you rule solar out.
See what solar funding actually existsFrequently asked questions
Is there still a Home Energy Scotland loan for solar panels in 2026?
HES stopped funding new solar PV and battery applications from 6 June 2024. The separate Warm Homes Loan Scheme is not a reinstatement of that support; check approved consumer products and their terms.
Can I still get any Home Energy Scotland funding at all?
Yes, but not for solar. HES currently funds energy-efficiency improvements and clean heating systems like heat pumps, each up to £7,500, with a £1,500 rural uplift on each. Call 0808 808 2282 to check your home.
Why do I still see ads for "the government solar loan"?
Some cold-callers and adverts have not updated their pitch since the scheme closed in 2024, and a few use the old phrasing deliberately to sound official. Treat any call claiming a government solar grant with caution and verify it directly with Home Energy Scotland.
What replaced the Home Energy Scotland solar loan?
The HES solar loan has not returned. A separate UK Warm Homes Loan Scheme has been announced, covering eligible properties in Scotland. Availability depends on approved lender products; do not assume an announced scheme is already accepting consumer applications.
Does 0% VAT still apply to solar panels in Scotland?
Yes. Solar and battery installations remain VAT-free, and that is due to continue until 31 March 2027, when the rate is set to rise to 5%.
Sources
Last verified: 20 July 2026. We re-check the facts on this page regularly; if a scheme or rate has changed since, the official source linked above is definitive.