Concerns over impact of funding cuts on consumer and market confidence

In response to the Scottish Government’s decision to discontinue funding for solar photovoltaic (PV) and battery storage under the Home Energy Scotland Grant and Loan scheme, Alan Wilson, Chair of the CICV, has voiced serious concerns regarding the potential setbacks this poses to Scotland’s low-carbon transition efforts.

Mr Wilson said: “Solar PV and battery storage are not just about clean energy; they represent a commitment to long-term economic stability and environmental stewardship. Their exclusion from funding signals a worrying shift in policy that will undoubtedly discourage investment and innovation in Scotland’s renewable sector.

“A stable policy environment is essential for businesses to commit resources to developing, installing and maintaining low-carbon technologies. The current policy fluctuation risks stalling Scotland’s progress towards its environmental goals and shaking the confidence of market investors and the public alike.

“It will also significantly affect the training and skills development that businesses within the renewable sector undertake. After numerous false starts with renewable technology funding, installers are increasingly wary of committing to training when support is so frequently withdrawn. Businesses need clarity and certainty to invest effectively, and this unpredictability severely hampers their ability to do so.”

Mr Wilson, who is also Managing Director of SELECT, went on: “This decision also directly and profoundly impacts Scottish households, especially those in more vulnerable economic positions.

“Without financial support, the initial cost of transitioning to renewable energy sources becomes prohibitive for many. This not only slows down individual progress towards energy independence but also widens the socioeconomic divide in access to clean technology. Ensuring all communities can participate in and benefit from Scotland’s energy transition is crucial for its overall success and social equity.”

“Moving forward, we must ensure continuity and consistency in our approach to fully realise our low-carbon ambitions. The abrupt end to funding for these critical technologies could undermine the trust that consumers and the marketplace have in all the nation’s low-carbon transition strategies. As always, we advocate dialogue to find a way forward rather than undermining Scotland’s sustainable future.”