Financial Assistance
Help with the cost of a Heat Pump installation.
The Home Energy Scotland Grant and Loan can help with the cost of installing a heat pump.
Grant funding for heat pumps is up to £7,500 or £9,000 for households which qualify for a rural uplift.
The remainder of funding if required can be taken up as an optional interest-free loan.
The Scottish Government funds the Home Energy Scotland Grant and Loan funding scheme.
Homeowners can access the following funding for heat pump installations:
- up to £15,000 to install a heat pump (up to £7,500 as a grant plus up to £7,500 as an optional loan, or £9,000 grant plus £7,500 optional loan if the household qualifies for the rural uplift)
- grants up to 75% of the combined cost of improvements to improve home energy efficiency (up to £7,500 as a grant, or £9,000 if the household qualifies for the rural uplift)
For example, for a heat pump, you could receive up to £15,000 in funding. This breaks down to a £7,500 grant and you would pay back the remaining £7,500 as an interest-free loan.
It is important to note that funding is not released until Home Energy Scotland receive the required evidence of the installation along with the grant application form so in most cases, you will need to cover the cost of the installation upfront.
The Application Process
The Home Energy Scotland Grant and Loan
If you’re thinking about applying for funding to install a heat pump, these are the steps to follow.
Call Home Energy Scotland on 0808 808 2282 where an adviser will run through all the details of your home to recommend the most appropriate heating option and produce a Home Renewable Selector Report. The report is required along with a quote from an MCS accredited installer to complete the Home Energy Scotland Grant and Loan online application form which they will also email to you.
Home Energy Scotland will send you a funding offer if your application is approved. Work can only commence after a written funding offer is issued and must be completed within nine months. There is ongoing support from Home Energy Scotland throughout this period.
Once your installation is complete, submit your claim documents, including your MCS certificate and updated EPC if requested. Your EPC must show your heat pump has been installed, and none of the required energy efficiency improvements are outstanding.
For example, if you purchase a heat pump that costs £10,000, you will receive a grant of £7,500 and can borrow £2,500 as an interest-free loan. If your household qualifies for the rural uplift, you’ll receive £9,000 as a grant and can borrow £1,000 as an interest-free loan.
You choose how long to take to repay the loan up to the following maximum number of years:
- Under £5,000: 5 years
- £5,000 – £9,999: 10 years
- More than £10,000: 12 years
There is no early repayment clause if you wish to pay off the interest-free loan early. You will still need to pay your loan if you move home.
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