State of renewable energy in Scotland — 2026
The dates, grants and regulatory deadlines that shape your renewable decisions. Last reviewed May 2026.
Sector countdown
Scottish Government statutory target for net-zero emissions.
Zero-rate VAT on qualifying domestic energy-saving installations applies until this date.
New-build heat pump default; Scotland Section 6 already broadly equivalent.
Funding landscape — May 2026 snapshot
Home Energy Scotland
Grant plus interest-free loan for clean heating — up to £7,500 grant and up to £7,500 interest-free loan for an air source heat pump, biomass or a heat network connection, with a £1,500 uplift on the grant in eligible rural and island postcodes. Insulation is funded separately: £7,500 grant / £2,500 loan for solid wall, £1,500 grant / £500 loan for loft, cavity and underfloor. The loan is 0% interest but carries a 1.5% administration fee capped at £150 per application.
Solar PV and batteries — how the numbers are built
The Business Energy Scotland SME loan is not accepting new applications for solar PV projects. Scottish solar customers build the numbers from 0% VAT on qualifying domestic installs until 31 March 2027, Smart Export Guarantee income, and HES funding for the heat pump element where a project includes one. Solar thermal and hybrid solar PV-T water heating are loan-eligible up to £5,000 — a standard PV array is not.
Commercial — capital allowances
50% first-year allowance for "special rate" plant continues — applies to solar PV, battery storage and EV charge points. Combined with falling kit prices, commercial solar IRRs of 15-22% are routine.
Octopus Flux and time-of-use tariffs
Octopus Flux remains the gold-standard battery-economy tariff (peak export 24p/kWh). Other suppliers (E.ON Next, OVO) have begun rolling out competing dynamic tariffs. The economics of battery storage have fundamentally improved over the past 18 months.
EV — OZEV grant routes
OZEV chargepoint grants rose from £350 to £500 on 1 April 2026 for renters, flat owners and residential landlords, running to 31 March 2027. Workplace Charging Scheme £500/socket × 40 sockets. Public-charging infrastructure funded separately via LEVI.
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