Home Energy Scotland Loan launches

We are delighted to welcome the launch of the new Home Energy Scotland loan which represents a boost to funding for domestic energy improvements north of the border and a huge opportunity for the domestic energy assessment and installation industry.

What is the Home Energy Scotland Loan?

Home Energy Scotland combines previous energy efficiency incentives in Scotland into a consolidated funding scheme for homeowners and some private sector landlords. It is an attempt to simplify and streamline the process of applying for funding for energy efficiency improvements. The loan is provided on an interest free basis by the Scottish Government.

Home Energy Scotland Loan launches

What energy efficiency improvements are included?

Funding is available for the following improvement measures:

  • External wall insulation
  • Internal wall insulation
  • Heating systems (including gas, LPG or oil boilers, warm air units or electric storage heaters)
  • Gas connection
  • Double glazing
  • Secondary glazing
  • Insulated doors
  • Roof in roof insulation
  • Flat roof insulation
  • Loft insulation
  • Cavity wall insulation
  • Floor insulation
  • Renewables systems (including Solar PV, Biomass, Air Source Heat Pumps and Ground Source Heat Pumps)
  • Other secondary improvements

How much funding is available?

Funding is available up to a maximum of £32,500 per home when applying for energy efficiency improvements, home renewables systems or renewable-powered district heating schemes. The maximum loan and cashback options available are listed on the Energy Saving Trust website.

What is the opportunity for members?

Applicants are required to have an Energy Performance Certificate depending on the type of energy efficiency improvement for which they are applying. This recommendation is a huge boost to Scottish based assessors and members who work regularly in Scotland.

In addition, there is a recommendation to use Green Deal Installers and certified Microgeneration installers to undertake the installation of certain measures which is a boost to members of our installer certification schemes.

Scotland provides major opportunity for the energy efficiency industry

"Once again, Scotland is leading the way in terms of offering a joined up and simple home energy efficiency improvement scheme. The Scottish Home Energy Loan is interest free and only involves a small administration fee – so it offers compelling value and removes any barriers in the form of high interest fees.

Any recommendation on an EPC can be applied for, which obviously is a boost to our Scottish assessors, as their services and expertise will be sought. Not only will a pre-application EPC be required, but crucially a post install is needed before the loan is paid – which means an up to date register of EPCs is maintained.

Also certain insulation works must be completed if a loan is being applied for (Loft and Cavity Wall) which is key to the general improvement in performance and comfort in the properties involved. I also think that allowing the loan to be combined with other funding (RHI and FIT) is very sensible.

Looking forward, this scheme will be key if Scottish Government 'green-light' a Minimum Energy Efficiency Standards (MEES) which could see more ambitious targets and timescales than those in England and Wales.

Stroma will support its members should they have questions about this flagship scheme."

Andrew Parkin, Technical Manager

Find out more about the Home Energy Scotland loan

Visit the Energy Saving Trust website for full details about the new incentive, which is available on a first come, first-served basis.

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