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Home Energy Scotland Loan: in detail

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Latest: Continuing impact of lockdown on loan offers

Backlogs caused by COVID-19 restrictions may still cause delays to getting work done in your property. If you already have a Home Energy Scotland Loan offer, it will be valid for six months 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. You can start your application now and save it for completion once your chosen installers have been able to provide quotes.

Loans cashback

Up to 40% cashback for some eligible energy efficiency improvements 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 six 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 or email us 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.

  • Energy efficiency improvements: Energy Performance Certificate (EPC).
  • Gas connection and boiler: no energy report is required.
  • Renewables system: an EPC or a report issues by a Home Energy Scotland advisor.
  • Electric energy storage system: a report issued by a Home Energy Scotland advisor.
  • Heat energy storage system: a letter of suitability from a Home Energy Scotland advisor.

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'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 improvements required by the loan.

You’ll also need to declare in writing that you haven’t installed any other improvements 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 any other financial incentive scheme alongside the loan you should check eligibility criteria to ensure you can meet the requirements of both schemes.

See Energy Saving Trust's Smart Export Guarantee page for more information about this scheme.

The loan is not linked to other schemes, and 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 improvements 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.

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 £11,250 cashback funding. You can also apply for a further £500 for a heat meter if you are installing a heat pump).
  • Your loan can only fund one whole-house heating system.
  • 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.
  • 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 will need to provide a suitable energy report recommending the renewable technologies. This can be an Energy Performance Certificate (EPC) or a qualifying report issued by a Home Energy Scotland advisor.
  • Your installer and product must be certified under the Microgeneration Certification Scheme (MCS) for the system that is being installed. The only exception to this is micro hydro systems. Applications for these systems will be assessed on a case by case basis and we recommend using an installer accredited by the Renewable Energy Consumer Code (RECC) or recommended by the British Hydro Association.
  • 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.
  • You can also apply for funding for an energy storage system up to a maximum cost of £6,000.
  • 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.

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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.