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Scottish Government announce new approach to funding for installation of heat pumps


Scottish government has launched a new approach when it comes to funding the installation of heat pumps in domestic homes. The ‘Home Energy Scotland Scheme’ previously required homeowners to sign up for a loan before they qualified for the funding. However, this has been revised to ensure that from the 2nd December, homeowners can access a standalone grant of £7,500 for energy efficient improvements.

The grant funding has been made available through the Home Energy Scotland Grant and Loan to help cover the costs of making energy efficiency improvements or installing renewable systems such as heat pumps.

Changes to the scheme include:

  • Grant funding for heat pumps up to £7,500. The remainder of funding requested can be taken up as an optional interest-free loan.
  • Grant funding for energy efficiency improvements – up to 75% of the combined cost of the improvements and up to the maximum grant amount of £7,500.
  • A rural uplift of £1,500 to both the heat pump and energy efficiency grants. This uplift increases the heat pump grant flat rate and the maximum limit of the energy efficiency grant to £9,000.
  • Packages of measures created to support the uptake of complimentary measures that offer substantial improvement to energy efficiency and heat decarbonisation of households.

This announcement has come at the right time. With soaring energy costs people are struggling to heat their homes sufficiently and this will help households make energy efficient improvements. Improving the fabric and then the heating systems will ensure carbon emissions are reduced, homes are more comfy to live in and homeowners are spending less fuel bills.

Who can apply?

If you live in Scotland, in the home that you own, then you can apply for the Home Energy Scotland Grant and Loan. However, private landlords, businesses and property developers will be unable.


Contact an Energy Assessor

To support an application for this funding, you will need to have an acceptable energy report which recommends the improvements that are being applied for. Should you need one, you can use Elmhurst’s find-an-assessor facility to locate a Domestic Energy Assessor (DEA) who is local to you.