Can the SME Loan Scheme pay for solar panels?
No, not at present. The scheme's FAQs, read on 3 November 2026, say: "The scheme is not accepting new applications for solar PV projects." They also say that any electricity-generating renewable system that would make the site "a net exporter of electricity over the course of a year" is not eligible (SME Loan Scheme FAQs, page last updated 14 August 2026).
The scheme at a glance
| What it is | An interest-free, unsecured loan from the Scottish Government for energy and carbon saving measures |
| Amount | £1,000 to £130,000 |
| Term | 8 years (you can ask for a shorter term) |
| Cashback | 75% of eligible costs on some measures, up to set limits (below) |
| Solar PV | Not accepting new applications |
| Run by | Business Energy Scotland (advice and reports) and the Energy Saving Trust (applications, credit checks and payments) |
| How it opens | Rolling, all year, subject to funds |
Who can apply
The FAQs say your organisation must:
- Be based in Scotland and have traded for at least 12 months
- Be a small or medium-sized enterprise (fewer than 250 full time equivalent staff, turnover up to €50 million and/or balance sheet up to €43 million), a not-for-profit or a charity
- Have a satisfactory credit score and be able to afford the repayments
- Not start work, pay deposits or buy materials before a formal loan offer in writing
Private sector landlords and commercial boats are not eligible. Charities need constitutional documents that allow borrowing.
What it still funds
With 75% cashback: energy efficiency measures such as heating controls, building management systems, insulation, glazing, LED lighting and controls, voltage optimisation, variable speed drives, commercial refrigeration and compressors; and renewable heat (air, ground and water source heat pumps, biomass boilers and solar thermal).
Loan only, no cashback: wind turbines, micro-hydro, anaerobic digestion, combined heat and power and some gas boiler work.
Battery storage is not on the published lists. Measures not listed can be considered case by case by the Scottish Government, with approval needed before you apply; ask your Business Energy Scotland adviser.
Cashback limits: 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, with a maximum of £30,000 per business across all its applications. The cashback only comes with a loan.
How you apply
- Get a free qualifying report from Business Energy Scotland recommending the measures.
- Your adviser arranges access to the Energy Saving Trust's funding portal.
- Supply quotes: two quotes for any measure where you ask for more than £25,000.
- Show a payback of 20 years or less, after cashback.
- The administrator aims to decide within 10 working days of a complete application. Offers are valid for six months.
Renewable systems funded by the scheme must be MCS certified and installed by an MCS certified installer, except renewable electricity systems over 50 kW.
What a Scottish business can do about solar instead
- Get the free advice anyway. A Business Energy Scotland report looks at your whole site and can cover the measures the loan does fund, alongside solar.
- Use the tax relief. Most businesses that buy a system can claim capital allowances.
- Check the rates position. Renewable generation plant is left out of rating valuations in Scotland; see business rates and solar.
- Look at other finance. See asset finance and leasing and power purchase agreements.
- Watch the FAQs. The solar PV pause may lift; we will update this page when it does. For everything else open in Scotland, see solar grants in Scotland.
A free survey gives you the system design and payback figures any lender or adviser will want. See what you qualify for.
Frequently asked questions
Does Business Energy Scotland fund solar panels?
Not through the SME Loan Scheme at present. Its FAQs, checked on 3 November 2026, say the scheme is not accepting new applications for solar PV projects. Business Energy Scotland still offers Scottish businesses free, impartial energy advice and reports, which can cover solar alongside measures the loan does fund.
How much can a business borrow from the SME Loan Scheme?
Between £1,000 and £130,000, interest-free, repaid over 8 years, though you can ask for a shorter term. Some measures also attract cashback of 75% of eligible costs, up to £20,000 for energy efficiency and £10,000 for renewable heat, with a maximum of £30,000 per business.
Who can apply for the SME Loan Scheme?
Scottish small and medium-sized enterprises, not-for-profit organisations and charities that have traded for at least 12 months, pass a credit check and can afford the repayments. Private sector landlords are not eligible. You must not start work or pay deposits before you receive a formal loan offer.
Can I get the SME Loan cashback without a loan?
No. The FAQs say the grant element can only be accessed when you receive an interest-free loan, and it cannot be claimed as an upfront payment.
Is battery storage eligible for the SME Loan Scheme?
Battery storage is not on the published lists of eligible measures. The FAQs say measures not listed can be considered case by case by the Scottish Government, with approval needed before you apply, so ask a Business Energy Scotland adviser.
Related pages
- ScotlandCurrent solar support in Scotland for businesses, community groups, public bodies, schools and farms, with rates, planning and official contacts.
Capital allowancesHow solar panels are treated for capital allowances: the special rate pool, the Annual Investment Allowance, the 50% first year allowance for companies, and illustrative examples.- Business ratesNot in England, Wales or Scotland before April 2035; in Northern Ireland, systems of 50 kW or less are not rateable.
- ScotlandSP Energy Networks and SSEN connections, NPF4 and Scottish permitted development, the four city low emission zones, the Scottish rates exemption and realistic yields.
Asset finance and leasingHow hire purchase, finance leases and operating leases work for solar, who claims capital allowances under each, and how to aim for a cash flow positive project.