Heat pump funding for Scottish homes

The grant is funded by the Scottish Government. It is for a homeowner of an existing home in Scotland that is their only or main private residence. Advisors confirm the details for the address.

Home Energy Scotland Grant and Loan · correct as of 3 October 2026

Home Energy Scotland takes applications through its own advice service, linked above. Pentland Renewables is reached through the quote form and info@pentlandrenewables.co.uk.

Home Energy Scotland can pay a grant of up to £7,500 towards a heat pump, and you can add an optional interest-free loan of £7,500. The same amounts apply to air, ground, and water source heat pumps, and to a heat network connection.

Home Energy Scotland Grant and Loan · correct as of 3 October 2026

The heat pump has to run all of your heating and hot water. A replacement heat pump is listed with an interest-free loan of up to £7,500. Rural and island homes can get an extra £1,500 on the heating grant, and the same extra on the energy efficiency grant, when an advisor confirms the address. Rural households can claim up to £18,000 in grant funding across heating and energy efficiency.

Home Energy Scotland Grant and Loan · correct as of 3 October 2026

Solar thermal has a loan of £5,000. A hybrid solar PV and water heating system has a loan of £5,000, and that line is for solar PV-T. Grant funding on the solar thermal and solar PV-T lines is not available. Standalone solar PV and a home battery are not on the table. Biomass has a £7,500 loan and a £7,500 grant, with the conditions on the scheme page. Wind and hydro have a loan of £2,500.

Home Energy Scotland Grant and Loan · correct as of 3 October 2026

Energy efficiency grants cover up to 75% of the combined cost, with a maximum grant of £7,500. The rest can be an optional interest-free loan. Solid wall, underfloor, flat roof, and room-in-roof insulation funded this way use a TrustMark installer. The scheme page sets out the installer rule for the other energy efficiency measures.

Home Energy Scotland Grant and Loan · correct as of 3 October 2026

Funding is first-come, first-served, and subject to availability. It is reserved when a written funding offer is issued. You confirm that the work waits for that written offer. After the offer, you sign the agreement within 14 days. You then have nine months to complete the work and claim.

Home Energy Scotland Grant and Loan · correct as of 3 October 2026

Energy efficiency improvements need an EPC, and the work has to be recommended on that certificate. You can apply for a heat pump before an EPC is in place. The claim uses an invoice, a post-install EPC, payment account details, and an MCS certificate for a renewable installation.

Home Energy Scotland Grant and Loan · correct as of 3 October 2026

Where this funding pays for a clean heating or renewable system, the installer and the product are MCS certified. Micro-hydro is the published exception, assessed case by case. If you take the loan, the administrative fee is 1.5% of the loan value, up to £150. Repayment can run for up to 5 years under £5,000, up to 10 years from £5,000 to £9,999, and up to 12 years above £10,000.

Home Energy Scotland Grant and Loan · correct as of 3 October 2026

0% VAT on solar installs until 31 March 2027. From 1 April 2027 the rate is 5%. That 0% covers the panels, the cables, the controller, and the inverter, fitted in or on the building. It also covers a heat pump that is fixed in place and takes heat from the outside air for your heating, your hot water, or both. From 1 February 2024 it covers a home battery fitted in the house. If you only buy the equipment and nobody fits it, VAT is at the standard rate.

VAT Notice 708/6 · correct as of 3 October 2026