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Funding and certification

Whether you are an installer or an assessor working within the domestic or non-domestic sectors, getting the correct certifications can open doors for your business.

Both the UK and Scottish governments run schemes making money available to consumers to make energy efficiency improvements or renewable energy additions to their property. However, each scheme has its own set of contractor requirements which must be met for the project to be funded.

Installers

Below is a list of the funding and loan schemes available in Scotland. Open each section to see the target audience for each, available funding and the key contractor requirements. This list is by no means exhaustive but it does cover the largest and most widely available schemes.

Home Energy Scotland Loan

Target audience: 

Domestic - Owner Occupiers and Private Landlords

Available funding: 

Up to £38,500 (£15,000 for energy efficiency measures, £17,500 for renewable systems and £6,000 for energy storage systems). 

Cash back grants are also available for a limited time for energy efficiency measures.   

Key contractor requirements: 

Energy efficiency measures: 

Must be Green Deal (PAS 2030) certified for:

  • solid wall insulation (external or internal)
  • under-floor insulation
  • flat roof insulation
  • room in roof insulation

N.B Energy Saving Trust advises consumers to use Green Deal accredited contractors for all energy efficiency measures..

Boilers: 

OFTEC registered for installing oil boilers and Gas Safe Registered for gas/LPG boilers, warm air units or heating controls.

Renewable systems: 

Installers must be certified under the terms of the Microgeneration Certification Scheme (MCS). Products must be MCS or Solar-Keymark certified with the exception of micro-hydro systems.

Renewable heating systems must also be listed as eligible for Domestic Renewable Heat Incentive (DRHI) support on Ofgem’s EServe Product Eligibility List.

Energy storage systems: 

Both electric and heat batteries must be connected to a renewables system. This can be either an existing renewable system or a system which will be installed at the same time as the battery system (possibly with further funding from the Home Energy Scotland Loan scheme).  

 

The installer must be Microgeneration Certification Scheme (MCS) accredited for the renewable system the battery will be connected to. (even if they do not installer/have not installed the system).

Installers should also: 

  • be a member of a Trading Standards Institute-accredited consumer code which covers energy storage. 
  • meet all the manufacturer guidelines for the system and have undertaken all relevant manufacturer training available in the UK. 

For electric batteries, installers must also meet the Institute of Engineering and Technology’s (IET) code of practice.

Home Energy Efficiency Programmes for Scotland (HEEPS): Equity Loans (Pilot scheme)

Target audience: 

Domestic – Owner occupiers or landlords in Perth and Kinross, Stirling, Dundee, Glasgow City, Inverclyde, Renfrewshire, Argyll and Bute or the Western Isles.

Property must be in council tax band A-C or the occupier in receipt of certain qualifying benefits.

Available funding: 

Up to £40,000

Key contractor requirements: 

For renewable systems, installers must be Microgeneration Certification Scheme (MCS) certified.

For all gas works, installers must be Gas Safe Registered.

Home Energy Efficiency Programmes for Scotland: Area Based Schemes (HEEPS:ABS)

Target audience: 

Domestic – Owner occupiers

Available funding: 

Up to £6,500 for a flat. 
Up to £7,000 for a terraced property. 
Up to £7,500 for a semi-detached or detached property or if the property is on an island/very remote rural area.
Up to £9,000 with a £1,000 contribution for island and very remote areas

Key contractor requirements: 

Green Deal (PAS 2030) certified for all measures.  Local authorities are also likely to impose other requirements but this may vary from area to area.

Contractors are chosen by local authorities or managing agents working on their behalf. Opportunities are typically advertised through Public Contracts Scotland (PCS).  An increasing number of local authorities are also using contractors on the Scotland Excel contractor framework which was set up in 2017 for 4 years.

Warmer Homes Scotland

Target audience: 

Domestic – Homeowners or tenants of private-sector landlords

Available funding: 

Most measures installed are valued over £4,000

Key contractor requirements: 

All work is dealt with through Warmworks who use Everwarm as the main contractor along with a framework of contractors across Scotland.

Other than requirements demanded by UK law, Green Deal Certification (PAS 2030) is required for the installation of energy efficiency measures. 

Microgeneration Certification Scheme (MCS) certification is needed for renewable measures.

Energy Company Obligations (ECO)

Target audience: 

Domestic 

Available funding: 

Varies

Key contractor requirements: 

ECO installers should establish contractual relationships with energy suppliers who have obligations (see list here) via ECO brokerage or direct engagement. 

Relevant measures must be installed with Green Deal Certification (PAS 2030: 2017 Edition 1). If a measure is not referred to in PAS, the installation must be carried out in accordance with standard building regulations and any other regulations that relate to that measure.

For the Ofgem – ECO installers and industry webpage click here 

Renewable Heat Incentive (RHI)

Target audience: 

Domestic and Non-Domestic

Available funding: 

Varies dependent on tariffs and generation

Key contractor requirements: 

All systems must be listed as eligible on the Domestic Renewable Heat Incentive Product Eligibility List

For Domestic RHI, your company must be a Microgeneration Certification Scheme (MCS) member and you must comply with Home Insulation and Energy Systems Scheme (HIES) code of practice.

Feed-in Tariffs (FITs)

Target audience: 

Domestic and Non-Domestic 

Available funding: 

Varies dependent on generation

Key contractor requirements: 

Installers and the products they install should be a Microgeneration Certification Scheme (MCS) member, unless the installation is for a solar PV or wind installation with a declared net capacity in excess of 50kW or if it is a hydro or anaerobic digestion installation. These measures should go through the ROO-FIT route.

Prospective closure of scheme – last updated August 2018

The Department for Business, Energy and Industrial Strategy (BEIS) are consulting on closing the scheme to new applications after 31 March 2019.  Further details can be found here.

District Heating Loan Scheme

Target audience: 

Non-Domestic

Available funding: 

Up to £500,000 – potential for larger loans but decided on a case by case basis

Key contractor requirements: 

For any installation of renewable measures contractors should have Microgeneration Certification Scheme (MCS) membership. 

There is also a code of practice for heat networks through CIBSE and contractors (particularly on larger schemes) are expected to be aware of and be compliant with the guidelines.

For projects seeking funding of over £1,000,000 CIBSE (heat networks)-approved consultants must be used for the design and build of the project.

Resource Efficient Scotland SME Loan

Target audience: 

Non-Domestic

Available funding: 

Up to £100,000 

Key contractor requirements: 

Installed measures must be listed as eligible for support Microgeneration Certification Scheme (MCS) members must be used for renewable installations.

Please note: Both for MCS certification and PAS 2030 (also known as Green Deal Approved) status you will need:

  • A quality management system (QMS)
  • To satisfy the core competency requirements / standards
  • To comply with the relevant consumer code. 
  • Pass an assessment carried out by a certification body which includes and office audit at your premises and a quality check of your installations. 

Assessors

Assessors can be certified under the following certification and accreditation schemes:

Domestic

Non-domestic

  • Energy Performance Certificate (EPC) Assessor: For more information you will need to contact an Approved Organisation.  The full list can be found here.
  • Section 63 assessor: Further information can be found here.
  • Energy Saving Opportunity Scheme (ESOS) lead assessor: Further information including details on how to become an ESOS lead assessor can be found here.

 

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