Home Heat Pump Guide

Heat Pump Grant Scotland: Home Energy Scotland Guide

Scotland offers the most generous heat pump funding package in the UK. Through Home Energy Scotland (HES), homeowners can access up to £7,500 as a grant and a further £7,500 as an interest-free loan — a combined total of £15,000 in financial support. On a typical air source heat pump installation costing £10,000 to £13,000, this means many Scottish homeowners can get a heat pump installed with little or no upfront cost.

This guide explains how the Home Energy Scotland scheme works, who qualifies, how to apply, and how it compares to the Boiler Upgrade Scheme available in England and Wales.

What Is Home Energy Scotland?

Home Energy Scotland (HES) is a free, impartial advice service funded by the Scottish Government. It helps homeowners improve their home's energy efficiency and reduce carbon emissions. The service is delivered by the Energy Saving Trust on behalf of the Scottish Government.

As part of its work, HES administers grants and interest-free loans for renewable heating systems, including heat pumps. The funding is designed to make the switch to low-carbon heating affordable for Scottish homeowners.

How Much Funding Is Available?

The Grant

  • Air source heat pump: Up to £7,500
  • Ground source heat pump: Up to £7,500

This is a grant — you do not pay it back. It is deducted from the cost of your installation.

The Interest-Free Loan

  • Amount: Up to £7,500
  • Interest rate: 0% — completely interest-free
  • Repayment period: Up to 10 years
  • Monthly repayments: From approximately £63 per month (on the full £7,500 over 10 years)

The loan is optional. You can take the grant alone, the grant plus a partial loan, or the grant plus the full loan amount. You only borrow what you need.

Combined Example

For a typical £12,000 air source heat pump installation:

  • Total cost: £12,000
  • HES grant: -£7,500
  • Remaining: £4,500
  • HES interest-free loan: -£4,500
  • You pay upfront: £0
  • Monthly loan repayment: approximately £38 over 10 years

Compare this to the BUS grant in England and Wales, where you would pay £4,500 out of pocket for the same installation. Scotland's scheme is significantly more generous.

Eligibility Requirements

To qualify for Home Energy Scotland funding, you must meet the following criteria:

Property Requirements

  • Location: The property must be in Scotland
  • Ownership: You must own and live in the property (owner-occupier). The scheme is primarily aimed at owner-occupiers, though some flexibility may exist for certain circumstances.
  • Insulation: The property must have adequate insulation. If insulation improvements are needed, HES may require these to be completed first — and can also offer funding for insulation.
  • Existing heating: You should be replacing an existing heating system (gas, oil, LPG, electric, or solid fuel)

Installer Requirements

  • The heat pump must be installed by an MCS-certified installer
  • The installer must be registered with the relevant trade body
  • The system must be designed and installed to MCS standards

Who Is Not Eligible?

  • Tenants (though some tenants may be eligible for other energy efficiency support)
  • New-build properties (expected to include low-carbon heating from the outset)
  • Properties outside Scotland (see the UK-wide grants guide for alternatives)

How to Apply for the HES Grant and Loan

Unlike the BUS grant (where the installer applies for you), Home Energy Scotland requires you to initiate contact. Here is the step-by-step process:

Step 1: Contact Home Energy Scotland

Call the HES helpline on 0808 808 2282 (free from landlines and mobiles) or visit the Home Energy Scotland website. The service is free and advisors are trained to help you understand your options.

The advisor will:

  • Discuss your current heating situation
  • Explain the available funding
  • Check your initial eligibility
  • Advise on any insulation improvements needed first
  • Guide you through the application process

Step 2: Get a Home Assessment

HES may arrange a free home energy assessment to evaluate your property's suitability for a heat pump. This assesses insulation levels, heat loss, and the best type of system for your home.

Step 3: Get Quotes from MCS-Certified Installers

Once your eligibility is confirmed, get quotes from MCS-certified installers. HES may be able to provide a list of recommended installers in your area. We also offer a free quote service to connect you with certified installers.

Get at least three quotes and compare them carefully. The quote should include the system specification, total cost, and a clear breakdown of what is included.

Step 4: Submit Your Application

Apply for the grant and loan through Home Energy Scotland. You will need to provide:

  • Your personal details and property address
  • Details of your current heating system
  • The installer quote you have chosen
  • Evidence of property ownership
  • Consent to a credit check (for the loan element only)

Step 5: Approval and Installation

Once approved, your installer proceeds with the installation. The grant portion is paid directly towards the installation cost. The loan is set up separately with agreed monthly repayments.

Additional Support for Scottish Homeowners

Insulation Funding

If your property needs insulation improvements before a heat pump can be installed, HES can also provide funding for:

  • Loft insulation
  • Cavity wall insulation
  • External wall insulation
  • Floor insulation

Getting your insulation sorted first not only makes you eligible for the heat pump grant but also means your heat pump will work more efficiently and cost less to run. Read more about heat pump running costs and how insulation affects them.

Energy Advice

HES provides free, impartial energy advice to all Scottish households, regardless of income. This includes guidance on:

  • Reducing energy bills
  • Improving home comfort
  • Understanding smart meters and energy tariffs
  • Accessing all available funding and support

Scotland vs England: Grant Comparison

Scottish homeowners have a clear advantage when it comes to heat pump funding:

  • Scotland (HES): Up to £7,500 grant + £7,500 interest-free loan = £15,000 support
  • England/Wales (BUS): £7,500 grant only = £7,500 support

The interest-free loan is the key differentiator. It eliminates the upfront cost barrier that still exists with the BUS grant in England and Wales. A Scottish homeowner can realistically get a heat pump installed with zero upfront cost and manageable monthly repayments.

Rural Properties and Off-Gas-Grid Homes

Many Scottish properties are off the gas grid, particularly in rural areas and the Highlands and Islands. These homes are especially good candidates for heat pumps because:

  • Oil and LPG heating costs are typically higher than gas
  • The savings from switching to a heat pump can be substantial
  • There is no gas network to connect to even if you wanted to
  • Heat pumps work well in Scottish climates — modern systems operate efficiently down to -20°C

If you are currently heating with oil in rural Scotland, a heat pump funded through HES could save you hundreds of pounds per year on heating costs. Use our calculator to estimate your potential savings.

Warmer Homes Scotland

For low-income households, the Warmer Homes Scotland scheme (also delivered through HES) provides free energy efficiency improvements including heat pumps. Eligibility is based on income and benefits, and the service is completely free to qualifying households.

If you receive any of the following benefits, you may qualify for Warmer Homes Scotland:

  • Universal Credit
  • Pension Credit
  • Income-related ESA
  • Income-based JSA
  • Child Tax Credits (with income below the threshold)
  • Working Tax Credits (with income below the threshold)

Call HES on 0808 808 2282 to check your eligibility. This scheme can be combined with or used instead of the standard HES grant and loan.

Frequently Asked Questions

How much is the heat pump grant in Scotland?

Up to £7,500 as a grant (non-repayable) plus up to £7,500 as an interest-free loan. The combined maximum is £15,000 in financial support.

Is the BUS grant available in Scotland?

No. Scotland has its own scheme through Home Energy Scotland, which is actually more generous than the BUS grant available in England and Wales.

Do I have to take the loan as well as the grant?

No. The loan is optional. You can take just the grant and pay any remaining balance out of pocket. Many homeowners choose a combination — taking the grant plus enough of a loan to cover the remaining cost.

How do I contact Home Energy Scotland?

Call 0808 808 2282 (free from landlines and mobiles) or visit the Home Energy Scotland website. The service is free and impartial.

Can landlords apply in Scotland?

The HES grant and loan scheme is primarily aimed at owner-occupiers. Landlords should contact HES directly to discuss available options, as there may be alternative support.

Do heat pumps work in the Scottish climate?

Yes. Modern air source heat pumps are designed to work efficiently in cold climates and can extract heat from air temperatures as low as -20°C. Scotland's climate is well within the operating range. Ground source heat pumps are even less affected by air temperature.

How long does the application take?

From initial contact with HES to approved funding typically takes four to eight weeks, depending on whether a home assessment is needed and how quickly you provide the required information.

Can I get insulation funding as well?

Yes. HES can also fund insulation improvements. In fact, they may require certain insulation measures to be completed before approving a heat pump grant.

Ready to explore your options? Call Home Energy Scotland on 0808 808 2282 or get free quotes from MCS-certified installers in Scotland. Check our cost calculator to see what you would pay, or read the complete UK grants guide for a full overview of all available funding. You can also check whether a heat pump is worth it for your home.