Scotland announces renewable heat scheme for homeowners

A new £4.5 million cashback incentive to help people install renewable and energy efficiency measures in their homes has been announced by the Scottish Government. Presumably with similar goals to the Green Homes Grant that is available in England (invigorate the economy, get people working and to save energy) the incentive needs homeowners to act quickly as it will operate on a first-come-first-served basis until the end of March 2021.

Homeowners will be able to apply for 75% cashback up to the value of £7,500 towards the cost of a renewable heating system and a further 40% cashback up to £6,000 for energy efficiency measures.

Scotland’s Energy Minister, Paul Wheelhouse, said: “This new scheme is part of our ongoing work to support people to install renewable heat measures and the improve energy efficiency in homes across Scotland while we also seek to stimulate development of local supply chains. 

“The Scottish Government already provides a substantial free advice and support service to Scottish households to support them to make the transition to renewable heat and improve energy efficiency in their homes.

“This new scheme is part of our action to reduce emissions from heating our buildings and to support a green economic recovery from COVID-19 and I hope suitably qualified businesses are able to also pick up some valuable local work. Our wider package of work to support the recovery includes a £4 million renewable heat cashback scheme which opened to SMEs last week.”

The cashback offering for owners of domestic premises is an extension of the Home Energy Scotland loan scheme which offers interest free loans for those wishing to install renewable and energy efficiency measures in their homes.

Elmhurst Martyn reed commended the Scottish government for investing more in energy efficiency measures but is concerned about the short term nature of this incentive. "Industry and markets need time to plan, resource and to upskill staff; short term incentives do nothing to encourage such behaviours and the results can be poor quality installation on inappropriate properties. What we need, from all the Governments in the UK, is long term goals, interim milestones, short term incentives to encourage early adoption and long term penalties for those that don’t”

For more details of the incentive visit

Article published: 17/11/20

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