Home Energy

Interest Free Loan with 25% Cash Back Scheme

Interest free loans of up to £15,000 for home energy improvements. For a limited time homeowners can also receive 25% of their loan (up to a maximum of £3750) in cash back once the measure has been installed.

What does the scheme offer?

The Scottish Government is making available interest free, unsecured loans of up to £15,000 to householders for installing a variety of measures such as solid wall insulation, double glazing or a new boiler. Landlords with multiple properties are eligible for up to £100,000 in total.

For a limited time, householders are eligible to receive cash back of 25% of their quoted costs, up to a maximum of £3,750. Applicants must be able to complete works and claim funding by 10th March 2017 to benefit from this offer.

Here is how it works.

  1. The interest free loan funds 75% of the cost for the improvements.
  2. The cash back pays for the 25% balance. The cash back is a 25% grant towards making your home more energy efficient.

If the loan is for under £5,000 you can take choose a repayment time period of up to 5-years. If the loan amount is greater than £5,000 you can spread the repayments over up to 10-years.

What improvements could you make with an interest-free loan?

Primary Measure Max Loan Value
Solid wall insulation £10,000
Loft, cavity and underfloor insulation £1,000
Flat roof or room in roof insulation £4,000
Gas, LPG and oil boilers, warm air units and electric storage heaters £5,000
Double/triple glazing*, secondary glazing and insulated doors £4,500

* Upgrading of glazing is only available on windows which are single-glazed. 

Secondary Measures

If installing at least one of the primary measures,  you can install the following secondary measures: cylinder thermostat; draught proofing; waste water heat recovery system; flue gas heat recovery system; hot water tank jacket; heating controls. Loans of up to £500 per measure are available to help with financing any secondary measures.

Who is the scheme for?

The loan scheme is open to owner occupiers and registered private sector landlords in Scotland. The repayment period varies based on the amount you intend to borrow but those taking out higher value loans will be able to pay back over 10 years.

What is the process?

  1. To make an application, call Home Energy Scotland on 0808 808 2282, who will arrange for an application form to be sent out.
  2. Return your completed application.
  3. Once your application has been received, we will assess your eligibility and carry out affordability and credit checks. If you pass these checks, you will be sent a letter explaining you need to arrange for your Green Deal Advice Report (GDAR) to be completed at your property.  The GDAR is needed to ensure that any measures beign installed are included in the ‘Recommendations for improvement’ list on the Energy Performance Certificate portion of the GDAR.
  4. Arrange your GDAR.
  5. Send us the GDAR, and assuming it meets the scheme’s requirements, your loan offer can then be issued. 
  6. Your loan will include an administrative fee, which will be included in your monthly loan repayments.  The administrative fee is a percentage of the total loan value, up to a maximum of £150. 
  7. You must not start work until you have received a loan offer.
  8. Following completion of the work you will receive your cash back lump sum payment.

How do I choose an installer?

We recommend you use a Green Deal certified installer for the work you plan to have done at your property.

For some insulation measures, it is a requirement of the scheme that the installer is Green Deal certified specifically for the measure. These are:

  • solid wall insulation (external or internal)
  • underfloor insulation
  • flat roof insulation
  • room in roof insulation

Use the Green Deal company search tool to find an installer.

If installing an oil boiler, under this scheme your technician must be OFTEC registered.

It is a legal requirement that an installer is Gas Safe registered if undertaking gas work (such as installing gas/LPG boilers, warm air units or heating controls). Please check the Gas Safe Register for more information on the work this covers, and to check if an installer is registered.

For all other measures, there is no requirement to use a specific installer, but we do recommend you shop around and get at least 3 quotes to ensure good value for money.

Applicants should ensure their chosen installer is fully qualified and accredited with a relevant industry body and/or trade federation, and when researching installers ask about what guarantees they provide for the quality of the work.