With increasing numbers of households adopting solar technology to power their home, you may well be keen to join them. According to the Microgeneration Certification Scheme (MCS), over 130,000 UK households installed a solar panel system in 2022 – a jump of 114% a jump from 2021.
These statistics demonstrate greater demand for solar panels in recent years, and this demand is just as relevant to Scotland as it is to the rest of the UK. You’re likely one of many Scottish households keen to implement a more sustainable energy source for your house.
Stick around to learn more about the costs involved in installing and purchasing solar panels in Scotland.
Why You Should Get Solar Panels in Scotland
You could be forgiven for thinking that solar isn’t a viable option in Scotland as it isn’t exactly noted for its sunshine (though it does get more daylight hours than other parts of the UK). Nevertheless, getting a solar panel installed will still be worth it. Why? Well, it’s primarily to do with the increase in energy prices in recent years.
Solar panels are a worthwhile investment, especially since in most cases they don’t need formal planning permission. In addition, solar panels offer cost-efficient payback, particularly with their prices going down in recent years.
How Do Solar Panels Work in Scottish Weather?
Luckily, solar panels don’t need to bask in a sunny environment all day to work. Instead, they can work with cloudy weather and provide your household with efficient energy usage.
The panels can absorb solar energy of various wavelengths going through the clouds. The solar technology is highly efficient, producing over 10% to 25% of power output during cloudy weather.
Other than cloudy days, you might be more concerned when winter rolls around and the snow starts to pile. Nonetheless, since solar panels are usually installed in a tilted fashion, the snow will slide off. Additionally, the heat from the panel’s surface will likely melt it off as well. Still, you’ll likely receive the best output during spring and summer.
Besides that, Scotland’s weather has been getting sunnier than usual in recent years. In 2018, a summer heatwave provided areas in the country with over 117% to 136% of the average household’s electricity demand.
How Much Should You Expect to Pay for Solar Panel Systems in Scotland?
On average, the cost of a solar system panel in Scotland can vary based on your priorities for your solar system:
- Budget options: £8,000-£10,000
- Mid range: £11,000-£15,000
- High quality: £16,000-£20,000
These costs typically include the panel system and installation process.
Take a look at all you’ll receive from Homeshield if you opt for a higher end solar system option:
| 4 kW high-performance system | Work with a solar company with 15+ years of experience | 3x Home Improvement Company of the year |
| MCS Approved installation team | Fully credited | HIES/EPVS/NAPIT accredited company |
| Any issues along the way will always be dealt with by us | Typical two-week installation time | Tier 1 products with the latest solar technology |
| 25 year guarantee on solar systems | Performance guarantee of 90% | 35+ year lifespan expected for our panels |
While the £16,000 to £20,000 costs may seem somewhat high upfront, the long-term savings you’ll get from the system will be well worth it. With such a long lifespan, you’ll certainly break even with annual energy bill savings helping cover your initial investment.
What Impacts the Cost of a Solar Panel System in Scotland
Several critical aspects can determine the cost of a solar panel in Scotland. They include the following:
- Location of your residence
- Number of rooms in your house
- Type of panels you’ll choose to install
- Your house’s roof size
- Solar battery price
- Size of your PV system
- The amount of kw power you choose
Cost Trends of Solar Panels
The good news is that solar panel systems are gradually becoming more affordable and accessible to more households.
Every year since 1980, solar panel costs have decreased by 10%. Since 2010, prices have reduced by over 82%.
You’re likely speculating about the drastic drop in prices for this energy source. Well, it’s all thanks to the advancement of solar energy technology. Another factor affecting the price decrease is the soaring demand for solar panels in recent years.
These have contributed to the technology’s industry development, offering more options. With this increase in market size, you’ll need to make smart decisions about which supplier to pick and where to find the best offers for your household requirements.
Grants In Scotland for Installing Solar Panels
While solar panels offer long-term financial relief from rising energy bills, upfront costs tend to be too high for various Scotland residents and communities.
Subsequently, the government has generously provided multiple grant and incentive options to reduce initial costs and promote sustainably-powered organisations and households.
Community and Renewable Energy Scheme (CARES)
If you’re trying to install a solar energy system in a charity or community organisation, you could be eligible for the CARES grant.
It can offer up to £80,000 in support to applicants. You must visit the platform’s project patrol to assess your eligibility. If that’s the case, you’ll then fill out an application form from the Local Energy Scotland platform to apply.
The form will ask you to identify the solar technology you need and quotes you’ve received from various suppliers.
VAT Reductions
While this may not be a grant, VAT reductions effectively decrease solar panel costs in Scotland. With no VAT applied across all solar panel purchases for all UK residents, you won’t have to worry about significant price increases.
The Government suggested that a family having solar panels installed would see tax savings worth over £1,000 and savings on their energy bill of over £300 per year. The 0% VAT reduction applies from April 2022 to March 2027.
Home Energy Scotland Grant and Loan
Eligible to Scotland residents, the Home Energy Scotland Grant and Loan can offer a remarkable interest-free £6,000 grant to solar panel purchasers.
For grants below £5,000, you can repay it across five years. Meanwhile, grants going above £5,000 can be repayable over ten years.
The government advises you to wait to begin the solar panel installation process before officially getting the loan. Otherwise, you’ll no longer be eligible for the loan.
If you’ve received the loan, you have up to six months to collect the amount and install the solar panels. Plus, you’ll need to pay 1.5% of the loaned amount.
Applying for the program involves calling Home Energy Scotland. The speaker will advise you on the most suitable grant for your position. Next, they’ll give you an application form to fill out.
Smart Export Guarantee (SEG)
The SEG took effect in January 2020. It grants approximately 1p to 24p for every kWh of excess electricity sold back to the national grid. The scheme applies to solar panel owners.
Having an MCS-certified solar PV installer is another crucial requirement to receive this grant.
You can apply for the SEG by asking your energy supplier to send an application form and filing it out. Be sure to give your export MPAN. It’s a 13-number reference that identifies your electricity connection point.
Energy Company Obligation (ECO4) Scotland
The ECO4 Scotland Ofgem-backed grant provides partially or fully funded solar panels. It primarily targets low-income and energy-inefficient households that live off of benefits. They can include:
- Income Support
- Housing Benefit
- Working Tax Credit
- Universal Credit
- Income-Related Employment and Support Allowance
- Income-Based Jobseeker Allowance
- Child Tax Credits
Overall, the scheme funds applicants with an allocated £4 billion from the UK government.
Like the SEG grant, you can apply for the ECO4 Scotland incentive through your energy supplier. Here are some providers that work with the program:
- Octopus Energy
- Scottish Power
- Ecotricity
- British Gas
- Co-operative Energy
- Utilita Energy Ltd
- Utility Warehouse
- So Energy
Besides that, the sustainable program runs from April 2022 to March 2026.
Warmer Homes Scotland
Similar to the ECO4 Scotland program, the Warmer Homes Scotland funding scheme also focuses on low-income households or ones with senior residents over 75 years old, particularly those with medical certificates.
It can cover over 100% of the solar panel system costs. You can visit the Home Energy Scotland website to apply for this grant.
What to Consider When Picking Your Solar Panel Installer in Scotland
With an impressive market size reaching nearly £900 million in 2022, the UK’s solar panel installation industry is thriving. Consequently, a market this large provides you with multiple key solar installers to choose from, so many in fact that you might be more than a little confused about who to choose.
Factors to consider with solar installers include:
Accreditation
Before considering any solar panel installer, always ensure that they carry an MCS certification. It essentially provides you with a safety guarantee and allows you eligibility for the SEG grant.
Customer Reviews
Solar panel installations are a hefty investment. You’ll want to know what to expect from your installer before using their services. That’s where online third-party customer reviews and referrals come in handy.
Key Takeaways
To conclude, the costs of solar panels in Scotland vary based on factors like your home’s size and the number of panels needed. Once you have your specifications down, you’ll get a clearer idea of the costs to expect.
Fortunately, you may not have to entirely rely on your personal financing to install a solar panel system. With government-backed schemes like SEG, Home Energy Scotland and ECO4 in Scotland, you can reduce the cost burden while enjoying a more sustainable energy source.
