Home Energy Scotland loan.
The Home Energy Scotland loan helps homeowners make energy and money saving improvements to their home. This interest free loan is funded by the Scottish Government and is currently open to applications.
Funding up to £32,500 per home is available to owner occupiers and eligible registered private sector landlords in Scotland for energy efficiency improvements, home renewables systems or connections to an approved district heating scheme powered by a renewable energy source.
Cashback grants are also available for a limited time for energy efficiency improvements.
If you are interested in applying or would like more information please call Home Energy Scotland on 0808 808 2282 (free from landlines and most mobiles).
Funding operates on a first-come, first-served basis and is subject to availability.
Only Home Energy Scotland can arrange for an application form to be sent to you. It is a condition of the scheme that you contact Home Energy Scotland personally to get impartial advice about your home and so you can make a decision about the best options for you.
All applications will undergo credit and affordability checks.
Successful applicants who go on to claim funding will be required to pay an administrative fee of 1.5% of the total loan value up to a maximum of £150 per application.
Further information on how the scheme works can be found below. The complete loan terms and conditions can be found in the application form.
Who can apply?
Applications can be made by owner occupiers and certain registered private sector landlords in Scotland. Landlords are able to apply for up to 3 properties. The loan is only available to landlords who operate as “natural persons”. Businesses that own and rent domestic properties such as limited companies, charities, sole traders and partnerships are not eligible for funding under this scheme but may be eligible for support under the SME Loan scheme.
Loans must be used to improve existing residential existing buildings. New buildings under construction, where the property is already owned by the intended owner occupier, are also eligible for support for renewables systems or district heating connections but not energy efficiency improvements.
What is available?
Energy efficiency improvements
The total funding available towards energy efficiency work is £15,000, if you are completing multiple improvements. Of this, the maximum cashback available is £3,750.
Cashback funding is only available if you apply for and go on to claim a loan. You cannot apply for cashback funding separately.
The maximum funding available for each improvement is listed in the table below.
There is a funding cap for each improvement that covers both cashback and loan. Cashback funding is 25% of the cost of the improvement or 25% of the funding requested by the applicant, whichever is the lower, and, up to the maximum stated below. The remainder will be offered as an interest free loan.
Primary improvement /Maximum cashback amount /Maximum funding available (includes cashback)
External wall insulation £2,500 £10,000
Internal wall insulation £2,500 £10,000
Heating system (gas, LPG, or oil boilers, warm air units or electric storage heaters) £400 £5,000
Gas connection Not available £5,000
Double glazing** £400£4,500
Secondary glazing** £400 £4,500
Insulated doors £400 £4,500
Room in roof insulation £1,000 £4,000
Flat roof insulation £1,000 £4,000
Loft insulation £250 £1,000
Cavity wall insulation £250 £1,000
Floor insulation £250 £1,000
Cylinder thermostat, draught proofing, waste water heat recovery system, flue gas heat recovery system, hot water tank jacket, heating controls £125 £500
*only eligible if combined with an application for a primary improvement or renewables system
** only available for improving single glazing NOT for replacement/improvement of existing double glazing
Renewables systems and district heating connections
Interest free loan funding can be offered for up to 100% of the quoted installation costs or the maximum amount shown below, whichever is lowest.
You can apply for up to two home renewables systems per home up to £17,500 in total. You cannot apply for two whole-house heating systems for example you cannot apply for an air source heat pump and a biomass boiler.
Renewables system / Maximum funding available
Solar photovoltaic (PV) £2,500
Solar water heating £5,000
Hybrid PV-solar water heating £7,500
Air source to water heat pump £10,000
Ground source to water heat pump £10,000
Water source to water heat pump £10,000
Biomass boiler/stove £10,000
Hybrid air source to water heat pump £10,000
District heating scheme connection (renewably powered) £5,000
If you have any questions regarding access to the funding please contact Home Energy Scotland on 0808 808 2282 (free from landlines and most mobiles).