Energy Saving Scotland home loans

About Energy Saving Scotland home loans

The Energy Saving Scotland home loans scheme is managed by the Energy Saving Trust in Scotland on behalf of the Scottish Government.

Loans of between £500 and £10, 000 are available. The loans are interest free so you only pay back what you borrow. Applicants can pay back the loan in monthly instalments over a maximum of eight years.

Loans can be combined with grants such as the Energy Saving Scotland home renewables grants and funding from fuel suppliers under the Carbon Emission Reduction Target.

You can borrow money to:

• Install cavity wall or solid wall insulation and/or loft insulation;
• Install renewable energy systems, such as wind turbines, solar water heating, heat pumps, small scale hydroelectric schemes and wood fuel heating systems;
• Replace old, inefficient boilers.

The energy efficiency or renewable measure funded by the loan must be recommended in one of the following documents:

• Energy Performance Certificate (within the home report completed when buying, renting or selling a home);

• Home energy report (produced on completion of an Energy Saving Trust Home Energy Check (HEC);

• Home report on renewables and energy efficiency (completed via a home visit from an Energy Saving Scotland home renewables advisor); or

• Energy Assistance Package (EAP) Stage Four managing agent letter detailing the work recommended.

You can find out more about all these documents and how to get them by calling your local Energy Saving Scotland advice centre on 0800 512 012.

Clean Energy Cashback (Feed in Tariffs)

Feed in Tariffs will be introduced in 2010 providing financial incentives for people to install electricity-generating technologies such as solar electricity panels and wind turbines. For further information click here:

Feed in Tariffs

Who can apply and eligibility

Loans are available to any homeowner in Scotland. The property you are taking out the loan must be your main home.

Loans are only available for home energy improvements to existing homes. They are not available for new build projects.

Finding an Installer

For energy efficiency measures, such as the installation of insulation, we recommend using a registered installer. If you intend to apply for a home loan to cover the cost of the renewable energy system, it must be installed by an accredited installer.

To help you find a local installer, we've produced a handy list of those based in, or are able to work in Scotland:

> download Scotland Accredited Installer List

Application process

If you are interested in applying for an interest free home loan, contact your local Energy Saving Scotland advice centre on 0800 512 012. The advice centre will also be able to tell you if there are any grants available.

Once your application has been received, we will assess your eligibility for a loan - this includes undertaking a credit check.

When you receive an offer of loan, you will be able to start work on your project immediately. The loan will be paid on completion of the work. For some renewable installations we may pay a small deposit in advance.

Interest free loans for Scottish businesses

For Scottish businesses that fall within the EC definition of Small and Medium sized Enterprise (SME), private sector landlords, not-for-profit organisations and charities, you may want to consider an Energy Saving Scotland small business loan.