£42M Committed For 2022-2023

£7.5K Grant For Air Source Heat Pumps

£1.5K Extra To Homeowners In Rural Areas

The Home Energy Scotland Grant and Loan will help thousands of households make much-needed improvements to their homes to keep out the cold and drive down bills

Icon of pound symbol Harry Mayers Head of Home Energy Scotland

How Does The Home Energy Scotland Heat Pump Grant and Loan Work?

You can now apply for grant funding without taking out a loan. A rural uplift is also available to provide extra support to rural and island homes which can face increased costs to install home improvements

£42 million will be invested by the government into the Home Energy Scotland Heat Pump Grant and Loan. The grants offered will be:  

  • £7,500 - Air source heat pumps (ASHP) & Biomass boilers 
  • £7,500 - Ground source heat pumps (GSHP) & Water source heat pumps (WSHP)

 You can receive a maximum of £15,000. £7,500 as a grant as well as an additional £7,500 interest free loan.

Loan Repayment Periods:

  • 5 years - Anything under £5,000
  • 10 years - £5,000 - £9,999
  • 12 years - Anything above £10,000

Who is eligible to apply for the Home Energy Scotland Grant? 

The scheme is only available in Scotland. If you live in England and Wales, you can access funding to make energy-efficient home improvements through the Boiler Upgrade Scheme.

Find out below about the eligibility requirements:


Eligibility Requirements Ineligible Items
  • Must live in the home you own
  • You can't apply for the Home Energy Scotland Grant and Loan if you live outside of Scotland
  • Installers must be MCS certified
  • Landlords, businesses or property developers can't apply
  •  Installer must be a member of the Trading Standards Institute accredited consumer code which covers energy storage
  • You can't use the grant or loans on self-builds if it's not for home renewables systems or energy storage systems
  •  Replacement heat pumps are not eligible for grant funding. An interest-free loan of up to £7,500 is available for replacement heat pumps.


What is the Home Energy Scotland application process?

Follow this simple 4 step process to apply for the Home Energy Scotland:

  • Step 1 
  • You complete a checklist of things to do before contacting Home Energy Scotland. You can find this checklist on this Home Energy Scotland website
  • Step 2
  • You will have to contact their advisors by telephone or by email to go through various energy efficiency improvements suitable for you and your home
  • Step 3
  • Once you're ready to proceed, you'll complete a personalised online application form
  • Step 4
  • You can start work on the installation only once you have received written funding from Home Energy Scotland


Eco v4

Ask me about heat pumps

  • Mitsubishi Electric's Ecodan range of air source heat pumps offers heating solutions to suit every home. With the added benefit of R32, these renewable heating products help reach carbon zero. A sustainable heat solution!

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Explore more on Retrofit

  • The switch to low carbon heating systems for our homes is critical to ensure Scotland achieves its 2045 net zero carbon emissions target. From small flats to large detached houses, and from an office block to a school, Ecodan air source heat pumps are the renewable, low carbon alternative to traditional high carbon heating systems


What is the difference between the Home Energy Scotland Grant and Loan Scheme and the Home Energy Scotland Loan and Cashback offer?

Changes include:

  • Grant funding for heat pumps up to £7,500. The remainder of funding requested can now 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 increases the maximum limit of energy efficiency grant to £9,000.


Why is the Scottish Heat Pump Grant Important?

The Scottish Heat Pump Grant will act as a kick start for the air source heat pump market, as well as a financial incentive towards the goal of having renewable heating systems which will eventually lead to achieving the Net Zero target. 
To learn more about our pledge to build a more sustainable world, visit our sustainability hub.


Home Energy Scotland Grant & Loan FAQ's

Is the Scottish Heat Pump Grant and Loan available in England and Wales?

No it is not. However, if you live in England or Wales, there is alternative funding available.

In England and Wales, check with Boiler Upgrade Scheme. The Boiler Upgrade Scheme can be used for air source heat pumps, water source heat pumps, ground source heat pumps & biomass boilers:

  • The grants offered will be:  

    • £5,000 - Air source heat pumps (ASHP) & Biomass boilers 
    • £6,000 - Ground source heat pumps (GSHP) & Water source heat pumps (WSHP)

If you live in Northern Ireland, we recommend contacting NI Energy Advice to find out more about funding available.

How long will the loan be available?

The government committed to funding the cashback part of the scheme until at least 2023, so currently, there is no end date for acquiring it.

Who covers the cost of heat pump grants?

The largest energy companies fund the grants for eligible households in Scotland. These grants cover the cost of installing a heat pump. Grants are free in Scotland and you do not have to pay anything toward the cost of your heat pump.

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