Home Energy Scotland grant and loan
Scottish homeowners can get funding from the Home Energy Scotland Grant and Loan. It pays for clean heating and insulation, as a grant, a loan with no interest, or both. Being on benefits isn't a requirement.
- heat pump grant
- £7,500
- of your insulation costs, up to £7,500
- 75%
- extra if your home is rural or on an island
- £1,500
What the grant and loan covers
You can claim a grant worth up to £7,500 for heating, like heat pumps or a connection to a heat network. An optional loan of up to £7,500, with no interest, can go on top.
A heat network connection means your home gets its heat from one shared system that serves many buildings. The grant pays up to 75% of the cost for insulation and other energy saving work, with a maximum of £7,500. An interest-free loan can cover whatever is left.
Both grants can rise by an extra £1,500 for rural and island homes. So a rural household can claim grants of up to £18,000 in total.
Amounts of grant and loan for each improvement
Every job comes with its own limit. Taken from the scheme's funding tables, these figures are the most you can get.
| Improvement | Grant | Loan |
|---|---|---|
| Air, ground or water source heat pump | £7,500 | £7,500 |
| Heat network connection | £7,500 | £7,500 |
| Biomass (wood fuelled) boiler | £7,500 | £7,500 |
| Solid wall insulation | £7,500 | £2,500 |
| Flat roof or room-in-roof insulation | £3,000 | £1,000 |
| Loft, cavity or underfloor insulation | £1,500 | £500 |
| High heat retention storage heaters | £2,500 | £5,500 |
| Replacing single glazing | No grant | £8,000 |
| Heating controls | £450 | £150 |
Heat pumps that qualify
Funding only goes to a heat pump that handles all your heating and hot water. Heat pumps that are air-to-air, hybrid or exhaust air don't qualify.
Replacing a heat pump you already own? No grant is available for that. You can still take out a no-interest loan of up to £7,500 to cover it. MCS certification is required for both your installer and the product. The Microgeneration Certification Scheme is what MCS stands for.
Who qualifies for a Home Energy Scotland grant
If you own an existing property in Scotland, you can apply for this scheme. The home has to be the one you live in, your only or main home. No benefits test applies.
A landlord can't put this grant toward a property they rent out. Registered private landlords can check a separate Private Rented Sector Landlord Loan instead.
Funds are handed out on a first come, first served basis. The scheme stays open until the money is gone or the financial year closes, whichever is first.
Why an EPC is needed for insulation funding
A valid EPC (Energy Performance Certificate) is needed to claim money for insulation or other work that saves energy. Under the scheme rules, the work has to appear in the EPC's recommendations table.
Before the money is paid, a new EPC is needed once the work is done. The work must have come off its list of recommendations. These EPCs are paid for by you, but the loan can cover the cost.
An EPC isn't required for heat pumps or other clean heating. Look on the Scottish EPC register to see if you already have one.
How to apply
Your first step is the free advice service, funded by the Scottish Government. Here's what happens next:
- You'll talk with an adviser about your home, and they'll see what funding fits it.
- An email link to the online application arrives, usually inside two working days.
- If you need one, upload your EPC, along with itemised quotes from your installers.
- Then you wait to receive an offer in writing. Processing your form is something the team aims to do within 10 working days.
- You have 14 days to sign the offer. Any work has to wait until you're holding the written offer.
- You have nine months after that to get the work done and claim the money.
The interest-free loan explained
Credit and affordability checks apply to all loans. You'll pay an admin fee, set at 1.5% of the loan and no more than £150, as the terms say.
Paying it back takes as long as you choose. Under £5,000 comes with a maximum of 5 years, £5,000 to £9,999 gets up to 10 years, and anything over £10,000 can run to 12 years.
Common questions about the Home Energy Scotland grant
Is the Home Energy Scotland grant only for people on benefits?
No. Owner-occupiers get the grant, so the property must be your main residence and it must be in Scotland.
Does the grant cover air-to-air heat pumps in Scotland?
No. Exhaust air, hybrid and air-to-air heat pumps don't qualify. All your heating and hot water must come from the heat pump.
Is work allowed before my offer arrives?
No. A written funding offer has to be in place before work starts, and nothing done earlier can be paid for.
Are landlords able to apply?
This grant isn't open to them. What registered private landlords can do instead is look at the separate landlord loan.
Is an EPC needed for a heat pump grant?
No. Only insulation and other energy saving work requires an EPC, as the scheme says.