Home Energy Scotland renewables loan scheme


Update 31 March, 2014 - scheme extension

Demand for Home Energy Scotland renewables loans has been high and particularly for renewable heating systems. To make sure the market continues to grow, the Scottish Government is extending the deadline for new applications to the loan scheme.  

This extension will help more Scottish householders install a renewables system, further support Scotland's microgeneration industry and contribute towards Scotland's climate change targets. In addition, the UK Government's domestic Renewable Heat Incentive (RHI) has launched and the loan scheme from the Scottish Government will help as many Scottish householders as possible with the upfront costs of a renewable heating system so that they can then benefit from payments from the domestic RHI.   

New applications will continue to be accepted on a first come first served basis subject to the overall availability of loan funds. 

Please note that as some small changes were made to the terms and conditions of the scheme, application forms may take slightly longer to reach you. Interested householders can contact Home Energy Scotland on 0808 808 2282 and an application form will be sent once available if desired. These changes do not affect which renewables technologies are eligible, the loan amounts on offer or the repayment periods. 

Interest free loans up to £10,000 from the Scottish Government are available for owner occupiers in Scotland who want to install a domestic renewables system or who wish to connect to a district heating scheme powered from a renewable energy source.


What does the extension mean for you?

  • If you are interested in a loan or have questions then please contact Home Energy Scotland on 0808 808 2282. An adviser will be able to discuss options with you, explain the loan scheme and, if wished, arrange for an application form to be sent to you. Please note that updates to the application form may mean a short delay before you receive this. 
  • If you have recently been sent an application form but have not yet submitted it then a new application form will be sent to you including details of the scheme extension.
  • If you have already applied but have yet to receive a loan offer then your loan is being processed and, if you are eligible, then a loan offer will be made based on the new terms and conditions. You will be sent a copy of the new terms and conditions with your offer. 
  • If you have already received a loan offer then you should have claimed your  loan by 31 March 2014 unless you have been given an extension. If you cannot meet, or have missed, your claim deadline then please contact the Services Delivery team as a matter of urgency. Please note that, in order for an extension request to be considered it must be received in writing, via email ( servicesdeliveryscotland@est.org.uk) or post.

If you have any questions about your application or making an extension request please email servicesdeliveryscotland@est.org.uk or call 0808 108 9414 (free from landlines and most mobile networks).

You can also download our FAQs

What is on offer?

The loan scheme operates on a first-come first-served basis subject to the overall availability of loan funds.

Loans are available to owner occupiers in Scotland for residential existing buildings and new buildings under construction if the property is already owned by the intended owner occupier.

Renewables technologies – Interest free loans up to 75% of the total cost up to £10,000 for the supply and installation of a domestic renewables system.

The amount you can borrow will depend on the technology being installed and you can choose the repayment period that you prefer up to a maximum, as per table below:

Technologies Maximum loan value Maximum loan repayment period (years)
Solar photovoltaic (PV) £2,500 5
Wind turbine £2,500 5
Hydro turbine £2,500 5
Solar water heating system £5,000 8
Hybrid PV -solar water heating system £7,500 8
Air source to water heat pump £10,000 12
Ground source to water heat pump £10,000 12
Water source to water heat pump £10,000 12
Wood-fuelled (biomass) stoves and boilers £10,000 12

The installer you will choose and the system to be installed will need to be certified under the terms of the Microgeneration Certification Scheme. A list of all products and installers certified under the scheme can be found here.

You can also find more information about MCS certificated installers in your area using our Renewables Installer Finder tool.  Installers have provided information about their company and experience as well as any current offers they have available.  You can also read customer reviews

District heating schemes – Interest free loans of up to 100% of your costs up to £5,000 for connecting to an approved district heating scheme.

The district heating scheme you wish to connect to will need to be approved for support under the Home Energy Scotland renewables loan scheme.  A list of approved district heating schemes will be available shortly.


How to apply for a loan

Please note that you must not commence work before receiving a written offer of loan from us. You cannot apply retrospectively i.e. after work has been started on your renewables system or on your connection to a district heating scheme.

To apply for a loan please contact Home Energy Scotland free on 0808 808 2282.

Home Energy Scotland is funded by the Scottish Government and delivered by the Energy Saving Trust. It exists to help people and is the only source of clear and impartial advice on making your home cheaper to heat and power.

An advisor from Home Energy Scotland will make sure that you are aware of all the support you could be eligible for, advise on what you can do to your property to make sure it is as energy efficient as possible, explain the rules of the loan scheme and the next steps for you to take.

If you wish to proceed with a loan application the advisor will arrange for an application form to be sent to you. Only applications forms issued by us will be accepted. There may be a short delay while the new application form is made available but this will not affect loan deadlines. 

Please complete the form and return it with all the required supporting information, to the address detailed on the form.

There are some things you will need to get together to support your loan application, including a quote from your installer and an ‘energy report’ (when applying for a renewables system installation).

For more details please contact Home Energy Scotland free on 0808 808 2282 or check our FAQs


What else will I need to do?

To ensure that you maximise the carbon dioxide reductions and the energy you will be saving by installing a renewables system or connection to a district heating, you will be required to have a minimum level of energy efficiency measures in place in your home.

In all cases you will need to have a Green Deal Assessment carried out on your property and provide a copy of the Green Deal report with your claim.

For more details of the eligibility criteria please speak to Home Energy Scotland free on 0808 808 2282 or check the FAQs


What other incentives can I combine with the Home Energy Scotland renewables loan?

The Scottish Government Home Energy Efficiency Programmes for Scotland are open to people across Scotland. They can help make your home warmer and more energy efficient.

The programmes could help you in different ways. You can get free advice and different levels of support depending on your circumstances, and this support could be combined with a Home Energy Scotland renewables loan.  Please contact Home Energy Scotland on 0808 808 2282 to find out what you could be eligible for.

If you are planning on installing a renewables system either generating heat or electricity, part of the cost could be funded under Green Deal and remaining costs could be covered by a renewables loan. 

You may be able to receive payments for the renewable heat you generate through the domestic Renewable Heat Incentive even if you have received a renewables loan from the Scottish Government. For more information please visit our RHI webpage.

If installing a renewable electricity generating system, you may be eligible for payments for the renewable electricity you generate under the Feed-In-Tariff scheme.  You can apply to this scheme even though you have had a renewables loan from the Scottish Government. You can try our Solar Energy Calculator tool to estimate the payment you could potentially get through the scheme.

Home Energy Scotland can take you through all of these options and more, so please call for free on 0808 808 2282 for further help and advice.


Use our Cashback Calculator and read up on renewables

Try our Cashback Calculator tool and check our renewables webpages to help you discover how much money you could potentially earn and save and by how much you will cut your CO2 emissions when installing a renewables system.

Call Home Energy Scotland

to apply, on freephone 0808 808 2282