Available Funding in Scotland

Available Funding in Scotland

The Home Energy Scotland Scheme

What is the Home Energy Scotland Scheme?

The Home Energy Scotland Scheme is an initiative by the Scottish Government designed to support households adopting low carbon heating solutions. 

This programme provides eligible homeowners with grant funding and interest free loans to encourage the installation of heat pumps and energy efficiency measures. 

The overarching aim of the scheme is to reduce energy consumption, lower costs for homeowners, and contribute to the broader decarbonisation efforts in Scotland. 

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

NIBE Heat Pump

Who is eligible for the Homes Energy Scotland scheme?

To be eligible for the Home Energy Scotland Scheme, individuals must live in and own a home in Scotland.

How much funding is available for heat pumps?

The level of funding available depends on the type of improvements being made, with the maximum amount being offered to those who install a heat pump. 

The funding for heat pumps is broken down as follows:

  • A grant of up to £7500, or £9000 for those who qualify for the rural uplift. 
  • An optional interest free loan to cover the remainder of the funding, up to £7500. 

Grant funding for energy efficiency improvements is also available, up to £7500 or £9000 for those in rural areas. 

Find out more about the Home Energy Scotland scheme here.

Applying for Funding for a Heat Pump

Step One

Before contacting Home Energy Scotland, you can prepare for the process by:
- completing a Home Energy Check for a personalised report on how to reduce your energy bills
- Finding out your home’s Energy Performance Certificate (EPC)
- Using the Home Renewables Selector to understand what technologies may be suitable for your home

Step Two

Call Home Energy Scotland on 0808 808 2282 or complete their contact form. They will provide impartial advice on suitable improvements and, in some cases, can provide a specialist visit to your home to discuss plans in more detail.

Step Three

Get a quote from an MCS certified installer in your area. The MCS quality assurance scheme ensures that installers are competent and that the products they use meet the correct standards.

Step Four

Apply for your loan using the application form provided to you by Home Energy Scotland. You will need a quote from an installers to support your application. You can expect your application be fully processed within 10 working days.

Step Five

Once you have your written funding offer from Home Energy Scotland, you can start the installation.

Step Six

Home Energy Scotland advisor offer continued support from application to installation.

The Warmer Homes Scotland Scheme

What is the Warmer Homes Scotland Scheme?

The Warmer Homes Scotland programme offers funding and support to households struggling with their energy bills and is designed to make homes warmer and more comfortable. The funding covers wall insulation, loft insulation, draught proofing, central heating and renewables.

Applying for grant funding

The Warmer Homes Scotland programme is for those receiving passport or income benefits, or are older than 75 and have no working heating systems. A grant and loan is available under this scheme for energy efficiency and heating measures. Funding covers wall insulation, loft insulation, draught proofing, central heating, and renewables.

Who is eligible for the Warmer Homes Scotland programme?

Homeowners, private tenants and private-sector landlords in Scotland. You must live in and own the home, for at least 12 months. Your home must have a ‘poor’ energy rating, subject to a surveyor’s assessment.

Householders must not have received support for energy efficiency improvements through Warmer Homes Scotland funding in the last five years.

You must be 75 or over and have no working heating system or be over (working age) and be in receipt of one of the following passport benefits or income-related benefits:

Passport benefits

  • Personal Independence Payment (PIP)
  • Adult Disability Payment (ADP)
  • Disability Living Allowance (DLA)
  • Child Disability Payment (CDP)
  • Armed Forces Independence Payment/ War Disablement Payment
  • Industrial Injuries Payment
  • Carer’s Allowance
  • Attendance Allowance


Income-related benefits

  • Council tax benefit/reduction scheme (excluding 25% discount e.g. single person or student)
  • Universal Credit
  • Housing benefit/allowance
  • Income based Employment and Support Allowance (ESA)
  • Income based Job Seekers Allowance (JSA)
  • Income Support
  • Pension Credit (guarantee element)
  • Working Tax Credit
  • Child Tax Credit

How much grant funding can I access?

A grant of £7,500 is available for the installation of a heat pump. For these in rural areas, there is an additional £1,500 grant totalling £9,000.

The remaining costs can be taken alongside an interest free loan from Home Energy Scotland Loan. More information about the loan will be provided by Warmworks if there is a customer contribution to pay.

This grant funding will also cover energy efficiency improvements such as wall insulation, loft insulation and draught-proofing (including the £1,500 uplift for rural homes).

Find out more about the scheme here.

Zero VAT on heat pumps

The 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 took effect from 1st April 2022, and will last until March 2027. More information about how this is applied can be found here.


NIBE Expert

Talk To A NIBE Expert

Speak to a NIBE Expert today about your project and we'll put you in touch with one of our NIBE Pro Installers.

Our NIBE Pro Installers are all MCS certified meaning they can give you access to government funding.