Home Energy Scotland Loan launched

A new no-interest loan and cashback scheme has been introduced for those wanting to install energy efficiency measures in their properties.

The Home Energy Scotland Loan makes funding available for homeowners and some private sector landlords to make improvements that will help them reduce their carbon footprint, save money on their bills and make their properties warmer. The scheme is much simpler and more generous than the failed Green Deal (the last financial incentive of this type) and gives a fair and realistic payback time.

Those in Scotland can apply for a loan of up to £32,000 per property for home renewables systems or connections to an approved district heating scheme.

Who is eligible for the Home Energy Scotland Loan?

Homeowners and ‘natural persons’ landlords can apply. Landlords can only claim loans for up to 3 properties, and must not be part of a business that owns and rent domestic properties, such as limited companies, charities, sole traders or partnership.

What measures can be installed with the Home Energy Scotland Loan?

Energy efficiency measures

Measures such as insulation and double glazing are included under the umbrella of ‘energy efficiency measures.’ These qualify for generous loans that can cover up to all of the cost of installation.

Those installing external wall insulation, for example, can apply for a loan of up to £10,000 (including cashback of up to £2,500).

The maximum funding available for energy efficiency measures in one property is £15,000, if you are installing multiple measures. Of this, the maximum cashback is £3,750.

Home renewables systems

The new scheme offers interest-free funding covering 100% of the quoted installation costs for home renewables systems.This covers technologies such as solar PV and heat pumps. You can apply for up to two home renewables systems per property, up to a total of £17,500.

Connection to a district heating systems

The loan offers up to £5,000 for connections to district heating systems, covering up to 100% of the cost (provided it is powered by a renewable energy source).

Do I need an EPC to apply for the Home Energy Scotland Loan?

Anyone hoping to get funding will need to get an Energy Performance Certificate assessment done to establish the potential level of improvement that energy efficiency measures could make. An EPC survey measures the energy efficiency of a property by looking at things like the heating system, insulation and windows. It then gives recommendations on what measures to install in order to save energy in future. The Home Energy Scotland Loan requires an EPC to be carried out pre- and post- any installation covered by the loan.

What are the conditions of the Home Energy Scotland Loan?

    • Installers of the eligible technologies must hold the relevant certifications, (i.e. Gas Safe, for those installing central heating systems).
    • The property owner can choose how long they have to pay back the interest-free loan, and the bigger the loan, the longer you will have (up to a maximum of 12 years).
    • The loan won’t affect Renewable Heat Incentive or Feed-in Tariff payments.

Speak to Home Energy Scotland for more information on funding and how to apply.