Changes to Home Energy Scotland Loan Scheme

Upcoming changes to the Scottish Government’s Home Energy Loan Scheme have been announced, allowing owners and occupiers of domestic properties to apply for cashback in addition to the existing loan scheme.

This will allow Scottish residents to apply for and take advantage of up to £7,500 of cashback.

The Home Energy Scotland Loan Scheme enables homeowners and occupiers interest free loans, for those who want to install new renewable energy efficiency measures in their homes to improve its energy efficiency.

The cashback scheme outlines that people can apply for a 75% cashback grant towards the cost of a renewable heating system, totalling £7,500 and an additional 40% cashback payment of up to £6,000 for other energy efficiency measures.

What does the loan cover?

Funding is based on the specific improvements that residents want to make to their homes. According to the Home Energy Scotland website, people can claim for the following energy improvements and cashback:

  • Solid wall insulation: up to £10,000 (£7,500 loan plus £2,500 cashback)
  • Heating system (gas, LPG or oil boilers): up to £5,000 (no cashback available)
  • Heating system (warm air units or high heat retention electric storage heaters): up to £5,000 (£4,600 plus £400 cashback)
  • Gas connection: up to £5,000 (no cashback available)
  • Glazing: up to £4,500 (£4,100 loan plus £400 cashback)
  • Insulated doors: up to £4,500 (no cashback available)
  • Flat roof or room-in-roof insulation: up to £4,000 (£3,000 loan plus £1,000 cashback)
  • Loft, floor or cavity wall insulation: up to £1,000 (£750 loan plus £250 cashback)

For more information on this scheme, please visit the Home Energy Scotland Loan overview page.