The roll-out of heat pumps in Scotland is struggling due to limited access to low-cost finance for solar and battery energy storage systems, according to a new report from Solar Energy Scotland. This issue has led to a concerning dip in heat pump installations despite a notable rise across the UK.
Sluggish Growth in Scotland’s Heat Pump Adoption
Solar Energy Scotland’s chair, Josh King, has raised alarms over the decline in air source heat pump (ASHP) installations in Scotland. Although the UK saw a 21% increase in ASHPs installed in the first quarter of 2025 compared to the same period in 2024, Scotland experienced a sharp 13% decline. This discrepancy is concerning given that Scotland had previously been ahead of the curve, with 66% more ASHPs being installed per household in Q1 2024 than the rest of the UK. However, this advantage has diminished, with Scotland now only seeing a 19% increase.
King pointed out that solar and battery energy storage technologies could be key players in facilitating Scotland’s transition to low-carbon heating solutions. Together with heat pumps, these technologies can significantly reduce household energy costs. A report from Solar Energy Scotland in 2022 revealed that the combined benefits could amount to savings of hundreds, or even thousands, of pounds per year.
Impact of Financial Barriers on Growth
One of the primary factors contributing to the slowdown in Scotland’s adoption of heat pumps and solar energy solutions is the limited access to affordable financing options. In the past, Home Energy Scotland offered loans for solar energy systems, but these were abruptly withdrawn in 2023. The withdrawal of up to £11,500 in loans for solar, battery storage, and heat pump installations has left many households and businesses struggling to afford these technologies.
This move came just after a surge in solar energy installations across the UK. In March 2025, over 21,000 MCS-certified solar installations were completed across the UK, with nearly 2,000 of these in Scotland. This marked the highest number of installations in over a decade, but the growth in Scotland was still hindered by unclear policies and financing gaps.
Government Action and the Heat in Buildings Bill
The Scottish Government is currently revising the Heat in Buildings Bill, which aims to ensure a fair and affordable transition to low-carbon heating. This bill is seen as a crucial step in making the switch to heat pumps and other green technologies more accessible to homeowners, landlords, and businesses. The new version of the bill will introduce energy efficiency standards for various property types, including private rentals, in an effort to send a clear signal about the need for new heating systems.
Solar Energy Scotland has expressed its readiness to scale up rapidly in support of Scotland’s decarbonization goals. However, King emphasized that the solar industry’s growth in Scotland remains constrained due to the absence of clear policy direction regarding solar and energy storage solutions.
Solar and Heat Pumps: A Symbiotic Relationship
Solar Energy Scotland is advocating for more support for solar-powered homes and businesses, which would not only reduce energy bills but also make heat pump adoption more feasible. Public confidence in solar technology is high, with 68% of homeowners either already having solar panels or intending to install them in the future. In comparison, only 25% of homeowners are interested in installing heat pumps.
King highlighted the importance of solar energy as a gateway to future energy efficiency upgrades. Households with solar panels are significantly more likely to adopt electrically-based heating solutions, like heat pumps, in the future. This creates a positive feedback loop where the widespread installation of solar panels could pave the way for broader adoption of heat pumps.
Learning from Successful Models
The Scottish Government’s Green Heat Taskforce has pointed to successful models like iChoosr, which collaborates with local authorities to offer discounted solar installations to homeowners. This model has proven effective in making solar energy more affordable and accessible. Furthermore, the report suggests that Scotland could take inspiration from the UK government’s Warm Homes Plan, which combines grants and low-interest loans to help homeowners invest in solar panels, batteries, insulation, and low-carbon heating systems. This plan aims to upgrade 300,000 homes annually, providing a clear roadmap for Scotland’s future energy strategy.
The need for low-cost finance options is clear, and as the Scottish Government prepares to finalize its policies, many are hopeful that a clear direction will emerge to support both solar and heat pump deployment in the coming years.
