Scottish Government Grants & Interest-Free Loans for Renewable Energy

Tackle the energy crisis. Cover up to 75% the cost of a green energy installation in your property with grants of up to £9000 and interest-free loans, exclusively available to Scottish homeowners.

Friday, 20th January 2023

Following the enormous spike in the cost of energy bills, many homeowners have started looking into green energy systems to warm up their homes. While the cost of renewable energy install may have put people off in the past, the Scottish Government have announced they will be giving out grants and interest-free loans towards the installation of a domestic heat pump, solar panels (solar PV), solar thermal water heaters, biomass boilers and more. So, if you’re a Scottish homeowner who lives in the property, you can now apply for grant funding without taking out a loan. And, if you live in a rural or island home, you may also be eligible for extra support, known as the rural uplift.

How much funding will you get?

Governmental funding for energy efficiency improvements will cover up to 75% of the combined cost of improvements, with a maximum of £7500. If you quality for rural uplift then this figure is even higher at £9000. Grant funding for installing heat pumps is available at the same total amount, with the option to cover the remaining cost by taking out an interest-free loan.

Who can apply?

If you’re a homeowner in Scotland and you live in your property, you can apply for this funding towards green power. If you’re building your own home then you can apply for these grants and loans for home renewables systems or energy storage systems, but cannot use the money towards any other home improvements. Landlords, businesses and property developers unfortunately cannot apply for this funding, however there may be other Scottish Government funding options available for you instead.

How do you apply?

Get in touch directly with Home Energy Scotland to discuss whether or not you are eligible and what is available to you. They will then provide you with the official online application form needed to gain your funding. You can only apply for this funding through Home Energy Scotland.

What is the maximum you can borrow towards renewable systems?

This mainly depends on what type of green energy you would like to have installed into your property. Here is the maximum funding available towards home renewable energy systems:

Green Energy System

Standard Maximum

Rural Uplift Maximum

Heat Pumps

£15000 (£7500 grant plus £7500 optional loan)

£16500 (£9000 grant plus £7500 optional loan)

Solar Photovoltaic (PV) Panels

£7250 (£6000 loan plus possible £1250 grant if homeowners install a package of measures, e.g. solar PV plus air source heat pump)

Same as standard

Solar Water Heating Systems

£5000 (loan only, no grant available)

Same as standard

Hybrid Solar PV & Water Heating Systems

£5000 (loan only, no grant available)

Same as standard

Energy Storage Systems

£7250 (£6000 loan plus possible £1250 grant if homeowners install a package of measures)

Same as standard

Wind or Hydro Turbines

£2500 (loan only, no grant available)

Same as standard

Biomass Boilers or Stoves

£15000 (£7500 grant potentially available if there is evidence that a heat pump is unsuitable for the property plus £7500 optional loan)

£16500 (£9000 grant potentially available if there is evidence that a heat pump is unsuitable for the property plus £7500 optional loan)

Connections to a Renewably Powered Heat Network Scheme

£7500 (loan only, no grant available)

Same as standard

Funds will be available on a first-come, first-served basis, so don’t wait! Get in touch with Home Energy Scotland today to see if you are eligible for a grant and/or interest-free loan. Then our highly skilled team of Renewable Energy installers in Dumfries, and further afield, will take it from there.

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Information supplied by Home Energy Scotland