Chamber and committees

Applications to the Home Energy Scotland Grant and Loan Scheme can be unsuccessful due to the failure of a credit check. Credit checks are only carried out when an applicant is requesting loan funding.

An application may also be declined if the application fails to meet the conditions of the scheme. For example, if the applicant were to apply to use a non-accredited installer or if the measures applied for were not recommended for their property.

The Home Energy Scotland (HES) Grant and Loan scheme is open to all domestic owner-occupied households in Scotland.

The rural uplift to the HES Grant and Loan is available to all island households, as well as households with a rural classification of 7 or 8 within the Scottish Government 8-fold Urban Rural Classification. It is also available to households with a rural classification of 6 if their postcode is registered as off-gas on the Xoserve off-gas list.

Clean heating system maintenance costs will vary depending on factors including the type of system and usage. We are proposing a technology-neutral approach to decarbonising homes across Scotland, with homeowners able to choose the technology which is right for them. We do not expect the cost to households of maintaining a clean heating system to be significantly different from what they would pay for a polluting heating system. The estimated maintenance costs in existing homes in 2020 used by the Climate Change Committee Sixth Carbon Budget, and developed with latest available evidence and input from a range of industry stakeholders, are the same (£100 per year) for both air source heat pumps and gas boilers. Of course many low income households rent their properties through private or social landlords, and while these maintenance costs will be comparable to those living in owner occupied homes, they will typically sit with the landlord.

The Scottish Government has not undertaken economic modelling on this particular point. We will continue to engage with the sector in ensuring it can respond to the increasing take up of clean heating systems over the next decades, including undertaking economic analysis if this is appropriate.

The most recent marketing campaign for the Home Energy Scotland grants was in March 2023. The budget spent on this campaign was £203,755.

A further campaign specifically talking to grant and loans in relation to Heat Pump installation is planned for the new year which is budgeted for £480,000 and £286,433 has been spent so far.

The Scottish Government will continue to keep our schemes under review and working closely with stakeholders and our delivery partners will adjust as required to ensure that the outcomes delivered can be maximised for the funding allocated to them.

The objective of the Home Energy Scotland (HES) Grant and Loan Scheme is to support the installation of energy efficiency and clean heating measures amongst owner occupiers.

We use a number of metrics to monitor the scheme with particular focus on the number and value of grants and loans paid against the schemes allocated budget.

Our approach to monitoring our delivery schemes is set out in our recently published Heat in Buildings Monitoring and Evaluation Framework .

As uptake of clean heating systems increases, the number of people employed in the sector is expected to increase. The rate of increase required will be driven by consumer demand, which in turn will be driven by a range of different factors including any regulations that are introduced. As we continue to develop our regulatory proposals and wider package of support we will undertake further analysis as required to understand needed growth rates.

We continue to make progress against the actions outlined within the Heat in Buildings Supply Chains Delivery Plan. In November 2022 we launched the Green Heat Innovation Support Programme and the Green Heat Installer Engagement Programme . More recently we fulfilled our commitment to launch a new Mobile Heat Pump Training centre .

Proposals have progressed for a Green Heat Manufacturing Hub following the call issued by Scottish Enterprise in December 2022. A full and final proposal is now in development and is expected in early 2024.

In addition, we continue to explore options for a supplier-led funding scheme, which has the potential to support supply chain growth. We are currently engaging with the clean heat sector to understand appetite for such a scheme and the associated potential barriers and opportunities.

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