Home Energy Scotland Grant & Loan 2026

The Home Energy Scotland Grant and Loan is Scotland's flagship scheme for funding heat pumps and energy efficiency upgrades in owner-occupied homes. Administered by Energy Saving Trust on behalf of the Scottish Government, it combines a grant with an optional interest-free loan — making it the most generous combined-funding scheme in the UK for heat pump installations.

What you can get

Eligibility

• You must own the property and it must be your primary residence in Scotland
• The property must be existing (not a new build)
• The heat pump must provide 100% of heat and hot water — hybrid systems are not eligible
• Replacement heat pumps (i.e. replacing one heat pump with another) are not eligible for grant — but may be eligible for loan
• An energy report (similar to an EPC) is required as part of the application
• The installation must be by an MCS-certified installer
• First-come, first-served — funding is finite each year

How the grant + loan works

1. Get a Home Energy Scotland energy report (free home visit, arranged via Home Energy Scotland)
2. Get an MCS-certified installer's quote
3. Apply via Home Energy Scotland — they assess against the grant and loan criteria
4. Approval typically takes 4–8 weeks
5. The grant is paid direct to you (or your installer) on completion
6. The optional interest-free loan is repaid over up to 12 years — no interest, no fees

You can take the grant alone, or grant + loan together. The loan effectively means a £15,000 install can be funded with £7,500 grant + £7,500 interest-free loan over 12 years, costing you approximately £625/year in repayments — often less than the heating-cost savings.

What's covered

The scheme is broader than just heat pumps:

• Air source, ground source and water source heat pumps
• Heat network connection
• Insulation: cavity wall, loft, solid wall, floor
• Hot water cylinders and controls
• Solar PV
• Battery storage (loan only)
• Draught-proofing

There's a combined cap on the energy efficiency + clean heat package: £7,500 grant (or £9,000 with rural uplift), plus a matching interest-free loan.

Who's not eligible

• Private landlords (separate landlord-specific schemes exist)
• Tenants (the property owner applies, not the tenant)
• New-build properties
• Properties in England, Wales or Northern Ireland (each has separate schemes)
• Households claiming the same measure under a different public scheme

How does it compare to BUS in England?

The Boiler Upgrade Scheme (BUS) in England & Wales gives a flat £7,500 grant. Home Energy Scotland gives £7,500 grant plus up to £7,500 as an interest-free loan — funding twice as much of the install cost overall. The rural uplift makes the Scottish scheme more generous still for off-grid properties.

Practical implication: Scottish homeowners can often have their heat pump installed for £0 net out-of-pocket (loan repayments coming from heating-cost savings), whereas English homeowners typically pay £4,000–£7,000 net.

Applying — practical steps

1. Call Home Energy Scotland on 0808 808 2282 or visit homeenergyscotland.org
2. Request a free home visit and energy report
3. Get quotes from at least two MCS-certified installers
4. Submit the grant/loan application with quotes attached
5. Once approved, instruct your chosen installer
6. Grant paid on completion; loan repayments start the month after install