Funded by the Scottish Government, Home Energy Loan Scotland are interest-free loans paid to homeowners and private landlords to fund their energy efficiency improvement, home renewables, and connect with an approved district heating scheme. The loan is an attempt by the Scottish government to simplify and streamline processes of applying for funding for energy efficiency improvements.
As a homeowner, you can obtain up to £32,500, and a cashback grant for energy efficiency improvement carried out in your home. The loan covers heating systems like boiler, radiators, heating controls, cylinder thermostat, hot water tank jacket, flue gas heat recovery system, and wastewater heat recovery system.
Funding is available for the improvement of the following: Internal and external wall insulation, heating systems, insulated doors, gas connection, double and secondary glazing, roof in roof insulation, floor insulation, loft insulation, flat roof insulation, renewables systems, and other secondary improvements
Eligibility & Repayment
Application is only open to landlords who own properties in their capacity. Properties neither owned by a business nor listed as a business asset is exempted. You can only apply for three properties that are already occupied within 30 days of receiving the load.
The loan repayment period varies, and you can choose what suits you well from these three options.
- Under £5,000: 5 years
- £5,000 – £9,999: 10 years
- More than £10,000: 12 years.
Helpful Information
Important conditions to note
- Funding operates on first come basis and subject to availability
- After your applications have been received, you will be assessed based on the information provided and given feedback.
- After receiving the loan offer in writing, you have six months to carry out the job and claim your funding.
- You may be able to combine the Home Energy Scotland loan with other schemes and incentives.
- If your application’s successful, you’ll need to pay an administrative fee of 1.5% of the total loan value – up to a maximum of £150 for each application.
Supporting Documents – Energy Reports
The acceptable energy report must include the following:
- Energy performance certificate for people applying for energy efficiency improvements only.
- A report issued by a Home Energy Scotland specialist advisor for people applying for renewables only.
- If applying for both, then the improvements must be recommended in an EPC and a qualifying report issued by a Home Energy Scotland advisor.
- No report is needed when applying for a gas connection and boiler.
- If applying for an energy storage system, all applications (even if applying for other measures requiring a different report) must also be accompanied by a letter of suitability from a Home Energy Scotland specialist confirming a battery may be suitable for your property.
Note that these loans are on a strict first-come, first-serve basis. Details of the maximum loan and cashback options available are listed on the Energy Saving Trust website.
