Chamber and committees

The Home Energy Scotland (HES) Grant and Loan Scheme offers funding for a range of zero direct emissions heating systems, energy efficiency measures and additional measures, including solar PV and energy storage systems in some circumstances.

The Scottish Government has not closed this scheme, but has changed the conditions for funding of solar PV and energy storage systems.

For the reason behind this decision, I refer the member to the answer to question S6W-19607 on 28 July 2023. All answers to written parliamentary questions are available on the Parliament's website, the search facility for which can be found at Questions and answers | Scottish Parliament Website .

The Home Energy Scotland (HES) Grant and Loan Scheme offers funding for a range of zero direct emissions heating systems, energy efficiency measures and additional measures, including solar PV and energy storage systems in some circumstances.

From 27 June 2023 funding offered for solar PV/energy storage systems through the HES Grant and Loan Scheme has been limited to where a household is installing these measures alongside a certified renewable heating system, or where one is already in place. Previously, applicants could claim interest free loan funding for solar PV as a standalone measure.

The HES Grant and Loan Scheme is open to all owner occupier households in Scotland and we do not collect socioeconomic data as part of the application process.

The HES advice service acts as the gateway to the Scottish Government’s heat and energy efficiency schemes. HES will refer households to a scheme suitable to their circumstances, including our Warmer Homes Scotland Scheme and Area Based Schemes, which are targeted at those in fuel poverty.

The Home Energy Scotland (HES) Grant and Loan Scheme offers funding for a range of zero direct emissions heating systems, energy efficiency measures and additional measures, including solar PV and energy storage systems in some circumstances.

From 27 June 2023 funding offered for solar PV/energy storage systems through the HES Grant and Loan Scheme has been limited to where a household is installing these measures alongside a certified renewable heating system, or where one is already in place. Previously, applicants could claim interest free loan funding for solar PV as a standalone measure.

From the launch of the HES Grant and Loan Scheme in December 2022 to the end of July 2023, 2107 legally committed offers have been made for standalone solar PV/energy storage systems. Legally committed offers are where an application has been submitted, approved and a funding agreement has been put in place.

Note these figures include some instances where an application was submitted under the previous HES Loan and Cashback Scheme, but were processed and became legally committed under the HES Grant and Loan Scheme.

The Home Energy Scotland (HES) Grant and Loan Scheme offers funding for a range of zero direct emissions heating systems (ZDEH), energy efficiency measures and additional measures, including solar PV and energy storage systems in some circumstances.

The Scottish Government recognises the importance of energy generated from solar PV in contributing to the decarbonisation of Scotland’s electricity supply, offsetting energy bills, and contributing to emissions reductions in cases where it supports ZEDH.

From 27 June 2023 funding offered for solar PV/energy storage systems through the HES Grant and Loan Scheme has been limited to where a household is installing these measures alongside a certified renewable heating system, or where one is already in place. In these cases, solar PV and energy storage can be used to generate and store some of the electricity required to run the ZDEH measure, supporting their uptake by reducing grid electricity demand and the running costs for the householder. Previously, applicants could claim interest free loan funding for solar PV as a standalone measure.

This decision was taken to prioritise finite funding to those uses of solar which best support our Heat in Buildings Strategy, reduce carbon emissions and for which there might be more limited delivery without government support, as solar PV is an increasingly established technology which is often viable without government subsidy.

Due to the range of measures supported through the scheme, the Scottish Government does not hold specific analysis for solar PV/energy storage system measures. Benefits are assessed on a scheme wide basis.

Energy Saving Trust estimate that across the 6,447 ZDEH and renewable measures that had been paid or committed through grants and loans in 2022-23, the lifetime CO2 savings were estimated to be 199,488 tonnes. In addition, it is estimated that the savings on lifetime fuel bills across the supported households to be £23.3 million.

The Home Energy Scotland (HES) Grant and Loan Scheme offers funding for a range of zero direct emissions heating (ZDEH) systems, energy efficiency measures and additional measures, including solar PV and energy storage systems in some circumstances. While solar PV installations often have other benefits such as reducing electricity bills, they do not directly reduce carbon emissions in the absence of a ZDEH system.

From 27 June 2023 funding offered for solar PV/energy storage systems through the HES Grant and Loan Scheme has been limited to where a household is installing these measures alongside a certified renewable heating system, or where one is already in place. In these cases, solar PV and energy storage can be used to generate and store some of the electricity required to run the ZDEH measure, supporting their uptake by reducing grid electricity demand and the running costs for the householder. Previously, applicants could claim interest free loan funding for solar PV as a standalone measure.

Due to the range of measures supported through the scheme, the Scottish Government does not hold specific analysis for solar PV/energy storage system measures. Benefits are assessed on a scheme wide basis.

Energy Saving Trust estimate that across the 6,447 ZDEH and renewable measures that had been paid or committed through grants and loans in 2022-23, the lifetime CO2 savings were estimated to be 199,488 tonnes.

The Scottish Government is committed to reforming Energy Performance Certificates (EPCs) to ensure they drive the energy efficiency improvements we need and to ensure building owners and tenants have better information on emissions associated with their heating system.

Earlier this year, the Climate Change Committee wrote to the Scottish Government setting out a series of recommendations for the reform on EPCs, noting that the current arrangements are “not fit for purpose”. In response to this advice, the Scottish Government published a consultation on EPC reform on 25 July 2023. In summary, this proposes to reform EPCs to:

• Introduce a set of domestic EPC metrics to provide a holistic reflection of a dwelling’s performance;
• Introduce a set of non-domestic EPC metrics to provide appropriate information about non-domestic buildings;
• Make additional changes to the EPC system to ensure that EPCs provide clear and useful basic information about a building’s energy efficiency and emissions associated with its heating system, for current and prospective building owners and tenants, and other stakeholders.

After the consultation closes on 16th October 2023, we will analyse responses and provide a response detailing the next steps and implementation of any EPC reforms.

In most cases it is a legal requirement to provide a Home Report to prospective buyers when selling a home. The home report comprises of a single survey, property questionnaire and energy report and is completed by a qualified surveyor. The energy report gives information on the home's energy efficiency in the form of an Energy Performance Certificate (EPC). An EPC states the energy efficiency of a building based on standardised assumptions about the way in which a building is used.

The Scottish Government published a consultation on EPC reform on 25 July 2023 seeking stakeholder views on proposals to reform the current metrics to provide more holistic information about the efficiency of a home that is relevant to current and potential owners and occupiers. Our reform proposals include responding to recommendations on improvements to the EPC scheme made by the Climate Change Committee, our statutory advisers on climate matters.

An Energy Performance Certificate (EPC) provides basic information about the energy efficiency of a building. EPC assessments are conducted by qualified Domestic Energy Assessors who must be members of an Approved Organisation. An EPC assessment for existing buildings is a non-intrusive survey and assumptions are required based on the age and characteristics of the building. The Standard Assessment Procedure (SAP) is the underlying methodology used for EPCs and is owned by the UK Government. There are well-recognised limitations to the current methodology and assessment process and we are working with the UK Government to ensure planned updates to SAP across the UK help improve the accuracy of EPCs.

By their nature, EPCs are intended to reflect, and allow comparison of, the building assessed, rather than the way its occupants use it. For this reason, the calculations are based on standard patterns of occupancy and use. For example, this means that the cost figures in a domestic EPC are not bespoke to the current occupants.

Earlier this year, the statutory advisers on climate policy to governments throughout the UK, the Climate Change Committee, wrote to the Scottish Government setting out a series of recommendations for the reform on EPCs, noting that the current energy efficiency rating on EPCs is a measure of energy costs, not energy efficiency. In response to this advice, the Scottish Government published a consultation on EPC reform on 25 July 2023. This seeks stakeholder views on proposals to reform the current metrics to provide more holistic information about the efficiency of a home that is relevant to current and potential owners and occupiers.

Earlier this year, the Climate Change Committee wrote to the Scottish Government setting out a series of recommendations for the reform on EPCs, noting that the current arrangements are “not fit for purpose”. We responded to this letter acknowledging that EPCs need to be reformed in order to deliver our climate targets.

The Scottish Government published a consultation on EPC reform on 25 July 2023. In addition to proposals to reform domestic and non-domestic EPC metrics, the consultation also highlights that we are reviewing existing assessment and quality assurance processes. We will draw from previous independent analysis and work with the Approved Organisations that accredit energy assessors, and the UK Government to identify changes and best practice to help maintain and improve standards. Together, we are confident that these proposed reforms will ensure that in future EPCs can be fit for purpose.