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Home Energy Scotland Loan

Home Energy Scotland loan 

The Home Energy Scotland loan helps homeowners make energy and money saving improvements to their home. This interest free loan is funded by the Scottish Government and is currently open to applications.

Funding up to £32,500 per home is available to owner occupiers and eligible registered private sector landlords in Scotland for energy efficiency improvements, home renewables systems or connections to an approved district heating scheme powered by a renewable energy source.

Cashback grants are also available for a limited time for energy efficiency improvements.

If you are interested in applying or would like more information please call Home Energy Scotland on 0808 808 2282 (free from landlines and most mobiles).

Funding operates on a first-come, first-served basis and is subject to availability. 

General information

Only Home Energy Scotland can arrange for an application form to be sent to you. It is a condition of the scheme that you contact Home Energy Scotland personally to get impartial advice about your home and so you can make a decision about the best options for you. Third parties, for example installers or letting agents, are not allowed to apply on your behalf.  

Work must not commence on any installation until you receive a loan offer in writing.

All applications will undergo credit and affordability checks.

Successful applicants who go on to claim funding will be required to pay an administrative fee of 1.5% of the total loan value up to a maximum of £150 per application.  

Further information on how the scheme works can be found below. The complete loan terms and conditions can be found in the application form.

Who can apply?

Applications can be made by owner occupiers and certain registered private sector landlords in Scotland.

Landlords are able to apply for up to 3 properties which must be currently occupied by one or more tenants or have one or more tenants in place within 30 days of the loan having been paid. 

The loan is only available to landlords who operate as “natural persons”. Businesses that own and rent domestic properties such as limited companies, charities, sole traders and partnerships are not eligible for funding under this scheme but may be eligible for support under the SME Loan scheme.

Loans must be used to improve existing residential existing buildings. New buildings under construction, where the property is already owned by the intended owner occupier, are also eligible for support for renewables systems or district heating connections but not energy efficiency improvements.

Essential questions and answers

What is available?

Energy efficiency improvements 

The total funding available towards energy efficiency work is £15,000, if you are completing multiple improvements. Of this, the maximum cashback available is £3,750.

Cashback funding is only available if you apply for and go on to claim a loan. You cannot apply for cashback funding separately.

The maximum funding available for each improvement is listed in the table below.  

There is a funding cap for each improvement that covers both cashback and loan. Cashback funding is 25% of the cost of the improvement or 25% of the funding requested by the applicant, whichever is the lower, and, up to the maximum stated below. The remainder will be offered as an interest free loan.

Primary improvement

Maximum cashback amount  

Maximum funding available (includes cashback) 

External wall insulation  £2,500 £10,000
Internal wall insulation £2,500 £10,000
Heating system (gas, LPG, or oil boilers, warm air units or electric storage heaters) £400 £5,000
Gas connection Not available £5,000
Double glazing** £400 £4,500
Secondary glazing** £400 £4,500
Insulated doors £400 £4,500
Room in roof insulation £1,000 £4,000
Flat roof insulation £1,000 £4,000
Loft insulation £250 £1,000
Cavity wall insulation £250 £1,000
Floor insulation £250 £1,000
Secondary improvement*
Cylinder thermostat, draught proofing, waste water heat recovery system, flue gas heat recovery system, hot water tank jacket, heating controls £125 £500

*only eligible if combined with an application for a primary improvement or renewables system
** only available for improving single glazing NOT for replacement/improvement of existing double glazing

Renewables systems and district heating connections 

Interest free loan funding can be offered for up to 100% of the quoted installation costs or the maximum amount shown below, whichever is lowest.

You can apply for up to two home renewables systems per home up to £17,500 in total.  You cannot apply for two whole-house heating systems for example you cannot apply for an air source heat pump and a biomass boiler.

Renewables system

Maximum funding available

Solar photovoltaic (PV)

Wind turbine

Hydro turbine

 

£2,500

Solar water heating

£5,000

Hybrid PV-solar water heating

£7,500

Air source to water heat pump

Ground source to water heat pump

Water source to water heat pump

Biomass boiler/stove

Hybrid air source to water heat pump

£10,000

District heating scheme connection (renewably powered)

£5,000

Repayment periods

You may choose how long you would like to repay the loan up to the maximum length of time shown below.

Amount borrowed

Maximum years to repay the loan

Up to £4,999

5 years

£5,000 - £9,999

10 years

£10,000+

12 years

How do I choose an installer and product?

Energy efficiency improvements

We recommend you use a Green Deal certified installer for the work you plan to have done at your property.

For some insulation measures, it is a requirement that the installer is Green Deal certified for that improvement. These are:

  • solid wall insulation (external or internal)
  • underfloor insulation
  • flat roof insulation
  • room in roof insulation

Use the Green Deal company search tool to find an installer.

If installing an oil boiler the installer must be OFTEC registered.

If installing a gas boiler or your installer will be undertaking other gas work it is a legal requirement that the installer is Gas Safe registered (gas/LPG boilers, warm air units or heating controls). Please check the Gas Safe Register for more information on the work this covers, and to check if an installer is registered.

For all other energy efficiency improvements there is no requirement to use a specific installer.

We recommend you shop around and get at least 3 quotes to give you choice and to ensure good value for money.

You should ensure your chosen installer is fully qualified and, if possible, accredited with a relevant industry body and/or trade federation. Ask what guarantees they provide for the quality of the work undertaken and what warranties are supplied with the products.

Renewables systems 

For home renewables systems your chosen installer and product must be:

  • Certified under the terms of the Microgeneration Certification Scheme (MCS) except for micro-hydro systems.
  • Listed as eligible for Domestic Renewable Heat Incentive (DRHI) support on Ofgem EServe’s Product Eligibility List (PEL). This is for renewable heating systems only (heat pumps, biomass and solar water heating systems).

A list of all MCS certified products and installers can be found on the Microgeneration Certification Scheme website and DRHI-eligible renewable heating products can be found on the PEL.

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

District heating scheme connections 

The district heating scheme must be powered from a renewable source of energy and the scheme must be approved for funding under this loan scheme.  Please contact Home Energy Scotland if you wish to ask about eligibility of a particular scheme.  

The installer of the connection must be approved the scheme owner/operator.

Which improvements can I apply for?

An acceptable energy report must recommend the improvements being applied for.  

This report must be included with the application.

  • If applying for energy efficiency improvements only then the work must be recommended in an Energy Performance Certificate (EPC).
  • If applying for renewables only then the system must be recommended in an EPC or in a report issued by a Home Energy Scotland specialist advisor.
  • If applying for renewables and energy efficiency improvements then the improvements must be listed in an EPC and/or a report issued by a Home Energy Scotland specialist advisor.
  • If applying for a gas connection and boiler only then no energy report is required. 

To see if you already have an EPC for your property, or to search for EPC assessors in your area, check the Scottish EPC register

Please note that if you are planning to install a solar PV system and apply to the Feed-In Tariffs scheme your EPC will need to be rated D or better and dated before the installation of your PV system to qualify for the higher Feed-In tariff payments. If your EPC is dated after the PV system is commissioned you can only be eligible for the lower tariff rates – even if rated D or better.  

What other requirements are there?

  • After an application is received, we will assess your eligibility and carry out affordability and credit checks before issuing a loan offer. 
  • Work must not commence on any installation until you receive a written loan offer.
  • Once you receive a loan offer you will have no more than six months to do the work and claim your funding. 
  • All applicants are required to have a post installation EPC completed before claiming their funding. The cost of the pre and/or post installation EPC can be added to the loan. The only exception to this requirement is if the installation address is a self-build property.
  • If the installation is part of a self-build project, you will need to provide planning permission documents with your application and title deeds with your claim. 
  • Loft and cavity wall insulation, if recommended in the energy report, must be installed by the time the funding is claimed.  
  • For more details of the eligibility criteria please speak to Home Energy Scotland free on 0808 808 2282. 

Could other support be combined with the Home Energy Scotland loan scheme?

It is possible to combine the Home Energy Scotland loan with some other schemes and incentives. Please contact Home Energy Scotland on 0808 808 2282 to find out more. Examples of potentially relevant schemes include:

  • The Renewable Heat Incentive (RHI) – If you install an eligible renewable heat technology this UK Government scheme pays you for the renewable heat you generate. Find out more about RHI
  • Feed-in Tariffs (FITs) – If you install an eligible renewable electricity technology this UK Government scheme pays you for the renewable electricity you generate. Find out more about Feed-in tariffs.

Please note that if you are planning to install a solar PV system and apply to the Feed-In Tariffs scheme your EPC will need to be rated D or better and dated before the installation of your PV system to qualify for the higher Feed-In tariff payments. If your EPC is dated after the PV system is commissioned you can only be eligible for the lower tariff rates – even if rated D or better.  

Help, advice and how to request an application form

For more details and to request an application form please speak to Home Energy Scotland free on 0808 808 2282. Trained advisors are available to discuss options for improving your home, how you can you reduce your fuel costs and carbon emissions and how to make your home warmer.

Helpful resources and next steps

For renewables systems

Please check the following resources:

  • Renewables pages to find out more about home renewables systems.
  • Cashback Calculator, Solar Energy Calculator, and the domestic RHI calculator to help discover how much you could potentially earn and save, and by how much you could cut CO2 emissions 
  • Specialist renewables advisors at Home Energy Scotland can go into detail with you about renewables options for your home. They’ll also cover energy efficiency improvements at the same time.
  • If you’re interested in finding out about homeowners who have improved their homes with renewable systems or energy efficiency measures then check out the Green Homes Network. We can even arrange a visit to a property for you so you can see the system and speak to the homeowner in person.

Home Energy Check

Use our Home Energy Check tool to find out how you can achieve lower energy bills and a more comfortable home. 

 

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Discuss the Home Energy Scotland Loan

For more details of the eligibility criteria and to request an application form, please speak to Home Energy Scotland for free. They're available Monday to Friday from 8am to 8pm and on Saturday from 9am to 5pm.