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Home Energy Scotland renewables loan scheme

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

Read on to find out more about the Home Energy Scotland renewables loan scheme.

What is available?

  • For renewables systems - up to 75 per cent of the total cost of renewables systems up to £10,000 can be borrowed.
  • For district heating scheme connections - up to 100 per cent of the total cost of connecting to a district heating scheme up to £5,000 can be borrowed.

Please note:

  • The amount you can borrow, and repayment period you can choose depends on the technology being installed. Please see the table below for more information.
  • The Home Energy Scotland renewables loan scheme operates on a first-come first-served basis subject to the overall availability of loan funds. 

Can I apply after installing a system?

No, you must not commence work before receiving a written offer of the loan. You cannot apply retrospectively i.e. after work has started on your renewables system or your connection to a district heating scheme. 

Who can apply?

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.

Maximum loan amounts and repayment periods

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

 

District heating schemes eligibility

Interest free loans of up to 100% of costs, up to £5,000, are available for connecting to an approved district heating scheme.

The scheme you wish to connect to needs to be approved for support under the Home Energy Scotland renewables loan scheme. A list of approved schemes will be made available on this page. 

Which installers and products can I use?

Your chosen installer and system must be certified under the terms of the Microgeneration Certification Scheme (MCS). 

A list of all MCS certified products and installers can be found at Microgeneration Certification Scheme website.

You can find more information about MCS certified installers in your area using our Renewables Installer Finder tool, including current offers and customer reviews.

How to apply for a loan under this scheme

You must not commence work before receiving a written offer of loan. You cannot apply retrospectively.

To apply please contact our advisors at Home Energy Scotland free on 0808 808 2282. Home Energy Scotland is funded by the Scottish Government and exists to help people as the only source of clear and impartial advice on making your home cheaper to heat and power.

A Home Energy Scotland advisor will make sure you are aware of any support you could be eligible for; advise how to make sure your property is as energy efficient as possible; and explain the rules of the loan scheme and next steps to take. If you wish to apply they will arrange for an application form to be sent to you. Only forms issued by us will be accepted.

Please complete the form and return it to us with all required supporting information 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 maximise carbon dioxide reductions and energy saved, you will also need 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
  • Should you wish to claim part of the loan prior to the completion of the installation, please notify us in writing after you have received your offer and we will assess your request.

Can I combine other support with the Home Energy Scotland renewables loan scheme?

You may be able to combine the Home Energy Scotland renewables loan with other schemes and incentives. Please contact Home Energy Scotland on 0808 808 2282 to find out more. Examples of potentially relevant schemes include:

  • Green Homes Cashback - Funding has been fully allocated for phase 3 of the Scottish Government’s Green Homes Cashback scheme. The scheme was previously available to owner occupiers, private and social tenants and registered private sector landlords for a variety of measures including boilers, insulation, double glazing and the cost of a Green Deal Advice Report. Vouchers are no longer being issued but it is possible to register on a waiting list. Should further funding become available vouchers will be issued on a first come first served basis. Find out more about the Green Homes Cashback scheme and register on the waiting list >
  • Green Deal - If you plan to install a renewables system part of the cost could be funded under Green Deal and part covered by a renewables loan. Find out more about the Green Deal >
  • The Renewable Heat Incentive (RHI) - You may be able to receive payments for renewable heat you generate through the domestic renewable heat incentive (RHI), even if you have received a renewables loan from the Scottish Government. Find out more about RHI > 
  • Feed-in Tariffs (FITs) - You may be eligible for payments for renewable electricity you generate under the Feed-in Tariffs scheme. You can apply to this scheme even if you have had a renewables loan from the Scottish Government. Find out more about Feed-in tarriffs >

Use our Cashback Calculator to read up on renewables

Try our Cashback Calculator and check our renewables pages to help discover how much money you could potentially earn and save, and by how much you could cut CO2 emissions by installing a renewables system.

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