October 14, 2024 Solar PV
Solar Power in Scotland – what Scottish businesses need to know.
As a nation, Scotland is a success story in the renewable revolution.
With over 97% of gross energy consumption being generated by renewables, and a 2045 target to achieve net-zero emissions, the impression is that businesses are already well-supported in transitioning to clean energy.
Whilst true, events in 2023 have called some of this into question. Homeowners and businesses have been hit by inflation and the high cost of living, UK and Scottish governments have wavered on net zero ahead of election year, and a popular interest-free loan for domestic solar has been suddenly cut.
In spite of these events, for most Scottish businesses who want to secure an affordable, zero-carbon way to generate the electricity their business needs, solar power still is the most attractive option.
If you are a business thinking of installing solar power in Scotland, here’s what you need to know.
Scotland’s Solar Power Profile
From the outside looking in, Scotland is a surprising place for solar to flourish.
Firstly, much of Scotland receives less than the 52 days’ average sunlight that all other UK nations do.
Secondly, in such a ‘renewable-rich’ country, solar energy production is only the fifth largest contributor to its 30,000 GWh renewable capacity. Hydroelectric and onshore wind generate 10x and 47x more energy than solar respectively.
However, it’s worth bearing in mind two important caveats:
- Much of Scotland’s (populated) East receives more sunlight than the UK average.
- Practicality matters – businesses and homeowners can easily install and have control of a solar power system that generates the electricity they need.
Lastly, when a solar power system is well-designed, it doesn’t just account for the local climate conditions to extract the most energy from sunlight (even when cloudy) — it’s also easy to maintain and highly efficient.
That’s why, in the right circumstances, it can be the cheapest source of electricity per kWh available.
Nevertheless, events in 2023 have cast some doubt on the attractiveness of solar for Scottish businesses.
Why has there been some concern for solar power in Scotland?
While solar power and its incredible capabilities haven’t changed, three things have suggested that social, economic and political will is swinging away from solar power and other renewables in Scotland:
- Businesses are thought to be seeing net zero as a secondary concern. British Business Bank research suggests that 53% of businesses are not ready to prioritise decarbonisation due to cost (and more still have done nothing to decarbonise).
- In June, a popular interest-free loan for solar panel installations in Scotland was suddenly axed with no replacement.
- Leading up to election year, both incumbent governments in the UK and Scotland are seemingly ‘wavering’ on their ambitious net-zero targets, indicating they are willing to shift on policy to keep votes.
In comparison to its UK neighbours, it is also notable that the Permitted Development Rights (PDR) consultation, which greatly speeds up solar panel installations, is still not completed. As it stands, it’s not unfair to ask whether Scotland is a less attractive place to install solar power than England and Wales.
That being said, despite some uncertainty in 2023, the outlook for solar power in Scotland is still overwhelmingly positive for businesses.
Why is solar power set to take off in Scotland?
As a way to generate energy cost-effectively, independently and cleanly, Solar power brings benefits for businesses that political events or social incentives don’t change.
It’s why, despite a lack of subsidies, solar uptake across the UK has been at a record high.
However, in Scotland, there are even more reasons that businesses will benefit from choosing solar power from 2024 onwards.
Cutting Red Tape
Phase 3 of the Permitted Development Rights consultation in Scotland, if successful (which we are optimistic it will be), will increase the capacity of solar power systems that homes and businesses can install without planning permission.
As most commercial projects just exceed the current 50kW threshold, installations are delayed by roughly 3-4 months purely to get permission from councils and Distribution Network Operations (DNOs).
In short, raising that threshold will significantly speed up installations, and reduce project times and overheads: all of which make solar a much more attractive option for both installers and their customers.
Securitisation and Decarbonisation
With the UK government legally committed to achieving net-zero emissions, businesses are following suit to find cleaner sources of energy – particularly those who are a part of supply chains to the government, where ‘net-zero’ businesses are preferred.
Equally, inflation and the increased cost of doing business have put securing an energy supply high on many businesses’ list of priorities – and solar power can meet their energy demands with a rapid return on investment.
Scottish appetite for Solar
Despite the closure of the national ‘feed-in-tariff’ incentive in 2019, and the end of the Scottish government’s interest-free loan in mid-2023, ‘top-down’ appetite for solar power is still strong – as evidenced by the ongoing consultation, zero-rate VAT for renewable installations (UK), and non-domestic rates relief for renewable projects (Scotland).
The Scottish government is also committed to increase solar generation capacity tenfold by 2030 as part of its upcoming Energy Strategy and Just Transition Plan.
From a ‘grassroots’ perspective (with encouragement from government) community solar projects are making solar power more affordable for local businesses through loans, grants and support.
Expertise
As the cost of installing solar has plummeted by 80% since 2008, installers have sprung up to meet the demand.
The number of installers in the field of solar power is increasing, and professional networks, such as Innasol’s Professional Surveyor Network, are being founded to improve installation standards and connect installers with customers – making better-performing systems accessible to more businesses.
What’s next for businesses looking to install solar power in Scotland?
Solar power offers businesses the most cost-effective, zero-carbon way to future-proof their operations and be the masters of their own energy supply. More subsidies and less bureaucracy just make adopting it even more attractive.
For Scottish businesses looking to make solar power the heart of their energy security strategy, Innasol Solar delivers a design-led approach that takes account of every factor that affects your energy-generation capabilities to install a system that meets your business’ needs.
With a network of partner installers across Scotland and a small, but dedicated project team with low overheads, you can expect a long-lasting, highly-efficient system, and a potential return on your investment in as little as three years.
Interested? Read more about Innasol Solar’s offer, and if you are ready to talk about securing your energy supply with solar power, get in touch with us.
FAQs about solar PV in Scotland
The Smart Export Guarantee (SEG) is a key consideration for businesses installing solar power panels in Scotland. It allows businesses to save money by getting paid for the excess electricity they export back to the grid. Choosing a SEG tariff from a licensed electricity supplier can enhance the financial return on investing in solar power technology.
Before installing solar panels in Scotland, particularly in a conservation area, it’s crucial to check with your local planning officer. Planning regulations may vary, especially in protected areas, and obtaining the necessary permissions ensures compliance and avoids potential legal issues. This step is vital to ensure that solar panel installations respect local architectural and environmental guidelines.
Yes, solar panels can be effectively integrated with other renewable energy systems, such as heat pumps, to maximise energy efficiency and savings. This combination allows businesses to harness solar energy for electricity and use heat pumps for sustainable heating and cooling, further reducing their carbon footprint and energy bills.
Consulting with specialised solar panel installers in Scotland ensures that businesses get expert advice tailored to their specific needs. Professional installers can assess the suitability of your premises for solar panels, navigate local planning regulations, and advise on the best systems to maximise energy savings and meet sustainability goals. They can also provide information on incentives like Home Energy Scotland and help businesses understand the financial benefits of solar energy.
Investing in solar panels in Scotland significantly reduces a business’s energy bills by generating its own electricity. This not only saves money in the long term but also decreases the carbon footprint, contributing to a cleaner, more sustainable environment. The reduction in energy dependence also offers financial predictability against fluctuating energy prices.
