Funding for your customers

Target audience: Domestic – owner occupiers

Grant and loan term: nine months from the date of offer

For all eligible energy efficiency measures the maximum grant is 75% of the cost of the measure or the maximum funding limit – whichever is the lowest – up to a combined maximum of £7,500 or £9,000 if the household qualifies for the rural uplift. The rural uplift is additional funding for those in eligible rural and island postcodes. An optional interest-free loan may be taken to cover the remainder of the cost up to the maximum amount per measure.

For eligible renewable measures the grant funding is calculated per measure up to the available maximum grant funding with an optional interest free loan to cover further costs. For example, grant funding for heat pumps is up to £7,500 or £9,000 if the household qualifies for the rural uplift, and an optional interest free loan is available to cover additional costs.

Grant funding is not available for:

• wind or hydro turbines
• warm air units
• solar water heating
• glazing (double/secondary)
• insulated doors
• heat network connections.

Solar PV and energy storage systems are only eligible for funding as part of a package together with a heat pump or high heat retention storage heaters. If you have already installed one or more of these improvements, you can apply for the remaining improvement(s) to complete the package.

Energy efficiency measures

Installers must be TrustMark registered for: solid wall insulation (external or internal), flat roof, room-in-roof or floor insulation. If applicant is unable to locate a TrustMark installer in their local area, they may use a Green Deal certified installer.

Renewable systems

Heat Pumps, replacement heat pumps, biomass boiler/stove, solar water heating and solar PV must be installed by a contractor certified under the Microgeneration Certification Scheme (MCS) for that system, except for micro hydro where no certification is required.

Energy storage systems

Electric and heat batteries must be connected to either an existing renewable system or a system that will be installed at the same time as the battery system. The installer must be MCS certified for the renewable system the battery will be connected to, even if they have not installed the system. Installer quotes for energy storage systems must also include a statement confirming they will meet all loan conditions for energy storage. Details of this are in the application form and terms and conditions. 

Please note: Funding is only available for this measure if taken as a package of measures. Please see the Home Energy Scotland Grant and Loan web page for more detail.

Heat network connections

Connections must be carried out by an installer approved by the owner or operator of the scheme and the scheme must be approved by Energy Saving Trust as eligible for loan support. Eligibility for heat network connections is assessed at the operator level and requires the operator to apply for eligibility with Energy Saving Trust. This will be assessed on a case-by-case basis and it needs to be fully or partially powered by renewable energy.

Other installation requirements

Self-installation (DIY) of improvements is not allowed.

There are no installer requirements for High Heat Retention Storage Heaters, however, the product needs to be listed on the Building Energy Performance Assessment support website

The scheme offers each applicant a total of £130,000 funding. This is made up of the following:

• £100,000 interest free loan.
• 75% of eligible costs up to a maximum of £20,000 can be claimed as a grant for energy efficiency measures.
• 75% of eligible costs up to a maximum of £10,000 can also be claimed as a grant for a range of renewable heat measures (heat pumps, biomass boilers and solar thermal).

Measure that can be applied for include:

• Heating, ventilation, and air conditioning upgrades.
• Renewable heat technologies such as installing an air source heat pump
• Improving insulation, draught-proofing, double or secondary glazing
• Installing LED lighting
• Installing wind turbines and wood-burning stoves.

For renewable technology installations the installer must be MCS certified for the technology being installed. This is required in the following instances:

• For renewable heating technologies when the system is under 45kW.
• For electricity generating technologies when the system is under 50kW.

There are no installer requirements for energy efficiency measures.

Target audience: Constituted non-profit distributing community organisations, including organisations with charitable status, that are established and operating across a geographically defined community or faith groups.

Grant and loan term: funding is project specific.

For renewable technology installations the installer must be Microcertification Scheme (MCS) certified for the technology being installed. This is required in the following instances:

• for renewable heating technologies when the system is under 45kW
• for electricity generating technologies when the system is under 50kW.

There are no installer requirements for energy efficiency measures.

Local Energy Scotland’s capital works supplier list aims to help communities find suppliers to install small to medium-size renewables installations.

To join the capital works suppliers list, suppliers must be:

• a Microcertification Scheme (MCS) accredited supplier for the technologies listed
• willing to engage with communities and respond to invitations to tender
• be able to provide a full design proposal and build service as a turnkey contract for building scale installations, where this is required. This should include provision of the design, engineering, labour, materials and delivery, installation, monitoring and commissioning.

If you’re an installer and you’d like to be included on the list, you can apply via the capital works supplier list application.

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 or very remote rural area
• up to £9,000 with a £1,000 contribution for islands and very remote areas

Key contractor requirements:

Installers must be 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 four years.

Target audience:

Domestic

Available funding:

Varies

Key contractor requirements:

ECO installers should establish contractual relationships with energy suppliers who have obligations (see this list) 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.

Visit the Ofgem – ECO installers and industry website for more information.

Target audience:

Non-domestic

Available funding:

Up to £500,000 – there’s also potential for larger loans but this is 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 million, CIBSE (heat networks)-approved consultants must be used for the design and build of the project.