Business Energy Scotland and Solar: Support for Scottish Businesses

Support for Scottish businesses installing solar

Business Energy Scotland

Business Energy Scotland is funded by the Scottish Government to provide free, impartial support and access to funding to help small and medium-sized enterprises save energy, carbon and money (Business Energy Scotland). On its home page it says it typically finds 24% savings on business energy bills; that is its own figure, across the measures it recommends, not a solar figure.

Its case studies (home page) include businesses that installed solar PV with battery storage after its advice, among them a forklift specialist and a dairy farm. Its advice is a good first step if you want an independent view of your whole energy use, not only solar. A solar site survey looks at one thing in depth: whether your roof or land and your daytime use suit panels.

The SME Loan Scheme

The scheme's FAQs set out the rules (Business Energy Scotland):

• Amount. £1,000 to £130,000, interest-free, repaid within 8 years.
• Who. Scottish SMEs, not-for-profits and charities, trading for at least 12 months, under 250 full time equivalent staff, within the turnover and ownership limits, with a satisfactory credit score.
• How. A qualifying report from Business Energy Scotland first; applications are handled by the Energy Saving Trust. No work, deposits or purchases before a written offer.
• Cashback. 75% of eligible costs up to £20,000 for energy efficiency measures, and up to £10,000 for heat pumps, biomass boilers or solar thermal; £30,000 in total per business; none for batteries.
• Solar PV. Not accepting new applications. Renewable electricity systems that would make the site a net exporter over a year are also excluded.

If the scheme reopens to solar PV, sizing the system to your own use (so the site doesn't become a net exporter) will matter. See how much solar your business needs.

Other ways to pay in Scotland

Capital allowances apply across the UK: solar panels are special rate plant and the Annual Investment Allowance covers up to £1 million of qualifying spending in the year (GOV.UK). Business loans, hire purchase and PPAs work the same in Scotland as elsewhere. See capital allowances on solar panels and commercial solar finance.

Business rates in Scotland

Scotland's Renewable Energy Generation Relief can give up to 100% off rates, but only where a scheme passes at least 15% of its annual profit (or the profit from 0.5 MW of its capacity) to community organisations and generation is the property's main use. mygov.scot's own example: a wind farm is eligible, a wind turbine above a shop is not (mygov.scot). Rooftop solar on a working business is very unlikely to qualify. Ask your local assessor how panels would affect your rateable value.

Planning in Scotland

The Scottish Government's circular 2/2024 explains the rights (Annex C):

• On the building (Class 6J). Panels on walls and roofs of non-domestic buildings, with no part protruding more than 1 metre from the surface. In a conservation area, not on the front elevation or a side elevation fronting a road.
• Free-standing (Class 6N). Up to 12 square metres in total within the curtilage; in a conservation area, not in the front curtilage.
• Where neither applies. Listed buildings or their curtilage, within 3 km of an aerodrome or technical site, National Scenic Areas, historic gardens or designed landscapes in a National Park, and World Heritage Sites.

More: planning permission for commercial solar.