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Available Funding in Scotland

Available Funding in Scotland

The Home Energy Scotland Scheme

What is the Home Energy Scotland Scheme?

The Scottish Government will provide homeowners with an interest free loan and cashback (subject to availability) through the Home Energy Scotland scheme, if eligible. The aim of this initiative is to reduce energy consumption and costs, whilst supporting decarbonisation. The loan covers energy efficiency improvements and renewable heating system installations, including heat pumps.

The Application Process

  1. Call Home Energy Scotland on 0808 808 2282 or request a call from an advisor. You will get impartial advice on improvements.
  2. Get a quote from an installer. For heat pumps, you will need to find an MCS certified installer in your area that is able to carry out the work. (The MCS quality assurance scheme ensures that installers are competent, and the products they use meet the correct standards.) You can find NIBE Pro MCS certified installers near you here.
  3. Apply for your loan. Use the application form given to you by Homes Energy Scotland. You will need a quote from an installer to support your application.
  4. Work begins. You can use your loan to start the installation.
  5. Ongoing support. Home Energy Scotland advisor offer continued support from application to installation.
  6. Leave a rating. Upon systems installation, leave a review (if listed) of your installer on the Renewables Installer Finder before claiming your funding.

Who is eligible under the Homes Energy Scotland scheme?

Homeowners in Scotland. You must live in and own the home.

How much funding can I access?

The amount of funding you can claim depends on what improvements you want to make.

Cashback of up to 75% for some renewable heating systems is available, which would mean 25% would be covered by the interest free loan. Cashback funding is based on total costs, is available for homeowners on loan approval. Funds for cashback are finite and so are offered on a first come first serve basis or until the end of the financial year- whichever is sooner.

Heat pumps are eligible for a loan of up to £10,000, which comprises of up to £7500 cashback and £2500 loan. If you are installing a heat pump, you can apply for an additional £500 for a heat meter.

The loan has a maximum number of years to be repaid. For under £5000 five years is the maximum; for £5000 to £9,999 up to ten years; and for more than £10,000, up to 10 years.

Find out more about the scheme here.

Your NIBE Pro installer will advise whether a low carbon heating system is suitable for your property. Find your nearest NIBE Pro Installer here.

Zero VAT on heat pumps

The recently announced 0% VAT on the installation of energy saving materials including heat pumps and biomass boilers, further reduces the cost of installing these systems. This reduction takes effect from 1st April 2022, and will last for 5 years, meaning it will cover the entire period of the BUS. More information about how this is applied can be found here: Energy-saving materials and heating equipment (VAT Notice 708/6) - GOV.UK (

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