Home Energy Scotland Loan: in detail

Piggy bank icon

Latest: Lockdown impact on loan offers

Level Four areas in Scotland are now in lockdown, meaning that your installer may not be able to do work in your property (unless it is classed as an essential activity).

If you already have a Home Energy Scotland loan offer, it is now valid for one year from date of offer, so you can claim your loan once your delayed installation is complete.

 

If you are applying for a Home Energy Scotland loan, you will need a quote from an installer to support your application. This might not be possible during lockdown but you can prepare now by starting your application and saving it for completion once lockdown is lifted. Contact us for more information - we're happy to help.

Loans cashback

Up to 40% cashback for some eligible energy efficiency measures and 75% for certain renewable heating systems (based on total costs and capped at a maximum value) is now available. Cashback is subject to availability while funds last or until the end of the financial year – whichever is sooner. Funds are reserved for customers when their loan is offered.

Repayment periods

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.

Important conditions

  • Funding operates on a first-come, first-served basis and is subject to availability, or until the end of the financial year – whichever is sooner.
  • After we receive your application, we’ll assess whether you're eligible and carry out affordability and credit checks. If your application is successful, we will send you a loan offer.
  • You cannot start work on any installations until you’ve received the loan offer in writing. If you receive a loan offer this financial year you have up to twelve months to carry the work out and claim your funding.
  • You may be able to combine the Home Energy Scotland Loan with other schemes and incentives; eligibility for the loan is not indicative of eligibility for any other programmes of support. Call us on 0808 808 2282 for more information.
  • Self-builders can apply for home renewables systems under the loan (not energy efficiency). You will need to provide planning permission documents with your application and title deeds with your claim.
  • 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

An acceptable energy report must recommend the improvements being applied for. This report must be included with the application.

  • If applying for energy efficiency improvements only, then the work must be recommended in an Energy Performance Certificate (EPC).
  • If applying for renewables only, then the system must be recommended in an EPC or in a report issued by a Home Energy Scotland specialist advisor.
  • If applying for renewables and energy efficiency improvements, then the improvements must be recommended in an EPC and/or a qualifying report issued by a Home Energy Scotland advisor.
  • If applying for a gas connection and boiler only then no energy report is required.
  • If applying for an electric energy storage system, the system must be recommended in a report issued by a Home Energy Scotland specialist advisor.
  • If applying for a heat energy storage system, the system must be accompanied by a letter of suitability from a Home Energy Scotland specialist advisor confirming it may be suitable for your property.

To see if you already have an EPC for your property, or to search for EPC assessors in your area, check the Scottish EPC register. You can supply your EPC reference number when applying - you don't need to send us a paper copy.

You'll also need to get an updated EPC after you've had the work done, and before we can issue loan funds.

The exceptions to this requirement are for:

  1. Self-build properties - you'll need to provide planning permission documents when applying. To claim the loan, you'll need to provide title deeds instead of a post-installation EPC.
  2. You installed an energy storage system only and have a current EPC which:
    1. is three years old or less,
    2. shows the renewables system the energy storage system is connected to, and
    3. does not recommend any of the energy efficiency measures required by the loan.

You’ll also need to declare in writing that you haven’t installed any other measures since your last EPC was produced.

You'll need to pay for any required EPCs, but you can add the cost of these to the loan if you want to.

Please note, if you're planning to apply to another financial incentive scheme alongside the loan you should check eligibility criteria to ensure you can meet the requirements of both schemes.

If you install a renewable heating system and apply for Renewable Heat Incentive (RHI) payments you will need to declare any cashback funding. This will be deducted from any eventual RHI payments.

You can use the RHI Calculator to estimate how much you could receive. If interested in receiving RHI payments you should first check the eligibility requirements carefully.

See Energy Saving Trust's Renewable Heat Incentive and Smart Export Guarantee pages for more information about these schemes. The loan is not linked to other schemes, eligibility for the loan is not indicative of eligibility for any other incentives and eligibility criteria may differ.

Energy efficiency improvements

You can only claim cashback if you apply for and claim a loan – you can’t apply for cashback on its own. Cashback can only be claimed by owner-occupiers for certain energy efficiency measures and renewable heating systems.

There’s a funding cap for each improvement or installation that covers both cashback and the loan. Cashback funding will be up to 40% of either the total cost of the improvement or of the funding you ask for - whichever is lower - and won’t be more than the maximum amount listed. All other funding will be as an interest-free loan.

All cashback is subject to availability while funds last or until the end of the financial year – whichever is sooner.

If you’re making improvements to glazing, you can only use the Home Energy Scotland Loan to improve single glazed windows. Unfortunately, it’s not available for replacing or improving existing double glazing.

If loft and/or cavity wall insulation is recommended in the EPC, and can be installed, you must have this work carried out by the time you claim the funding. You can apply for loan funding with cashback for these measures if they're recommended on your EPC.

Renewables systems, district heating connections and energy storage systems

Thinking of using a Home Energy Scotland Loan to fund a renewables system? We’ve got lots more information on our renewables information page.

  • Your loan can fund up to two home renewables systems for each home, to a maximum of £17,500 in total (including up to £7,500 cashback funding. You can also apply for a further £500 for a heat meter if you are installing a heat pump).

  • You can also apply for funding for an energy storage system up to a maximum cost of £6,000.

  • Cashback funding for eligible renewable heating technologies is also available. Cashback grants will be up to 75% of either the total cost of the improvement or of the funding you ask for - whichever is lower - and won’t be more than the maximum amount listed.

  • Your loan can only fund one whole-house heating system.

  • Once your system is installed you will need to leave a rating and review of your installer (if listed) on the Renewables Installer Finder before claiming funding.

  • All cashback is subject to availability while funds last or until the end of the financial year – whichever is sooner.

  • You can only apply for one energy storage system - for example, a heat battery or an electric battery.
  • You must either apply for a renewables system as well, or already have an existing system that it can connect to.
  • The district heating scheme must be powered fully or partially by a renewable source of energy and the scheme must be approved for funding under this loan scheme.
  • The fuel mix must include a minimum proportion of renewable energy sources. District heating connections are assessed on a case-by-case basis. Please phone 0808 808 2282 for more information.

Loans are administered by Energy Saving Trust. Successful loans are subject to an administrative fee of 1.5%, up to a maximum of £150. Work must not commence before a loan offer has been made. For certain improvements, you will need to use a certified installer.

Energy Saving Trust is authorised and regulated by the Financial Conduct Authority. All loans are subject to availability and terms and conditions apply.

Find out more

Loan overview

Find out who can apply, how much you can borrow and what types of improvements you can make.

Choosing the right installer

Find out about the specific requirements installers need to have, as well as certain things you must to do to apply for the loan.

call@2x

Get in touch

Call us on 0808 808 2282 or request a call back today. You can only get an application form from our advisors and they’ll also help with any enquiries you may have.