Funding for energy efficiency in homes

Important

If you've had poor quality wall insulation

There are quality issues with some solid wall insulation fitted through UK government schemes. This includes issues such as poor installation or failure to meet building regulations, which can lead to problems like damp or mould.

You might be affected if you had internal wall insulation or external wall insulation fitted through the:

• Great British Insulation Scheme

• Energy Company Obligation scheme (ECO, sometimes written as ECO4) - since April 2022.

You can find out what to do if you've had poor quality wall insulation on GOV.UK.

Insulating your home and installing renewable energy measures can make your home warmer, help you use less electricity and make your bills cheaper.

Depending on your situation, you might qualify for a grant or loan from:

• the Scottish government

• the UK government

• your local council

• an energy supplier.

This page includes information on some of the main funding schemes.

Get advice from Home Energy Scotland

You should contact Home Energy Scotland before applying for any energy efficiency funding. Home Energy Scotland are funded by the Scottish government and can give you free, impartial advice on how to:

• save energy

• cut your fuel bills

• make your home warmer.

They'll also:

• check what energy efficiency improvements your home needs

• check what funding you're eligible

• refer you to the right scheme.

Check what energy efficiency improvements your home needs

You should contact Home Energy Scotland for a free assessment. They might suggest improvements like:  

• insulation - cavity wall insulation, external wall cladding, or loft insulation 

• an efficient boiler - this can make your home warmer and lower your bills 

• a smart meter - this can help you see your energy usage and make changes 

• double glazing  

• LED lighting 

Once your home is well insulated you might be able to install renewable energy measures like: 

• solar panels or a wind turbine - to generate electricity 

• air source or ground source heat pumps - these need some outside space and electricity to run. They renew the heat they extract from the ground or air.

Warmer Homes Scotland

If you’re a homeowner or you rent privately, you might be eligible for funding from the Scottish government for home energy improvements such as:  

• wall insulation  

• loft insulation  

• draught-proofing  

• central heating – including new gas boilers or air source heat pumps  

• renewables  

The Scottish government will usually meet all the costs. If you need to pay some of the costs, you can apply for an interest-free loan to cover them.

You cannot get funding for work that’s already been done. 

Who can apply

You can apply if your home meets all following criteria:  

• it’s in Council Tax Band A to F  

• it's your main home  

• it has a poor energy rating – Warmer Homes Scotland can check this for you  

• it has a floor area of 230m2 or less  

• it’s fit to live in – it has to meet the ‘tolerable standard’. You can read more about the tolerable standard on mygov.scot. 

You must also have someone in your household who is either:  

• over 75 and has no central heating  

• terminally ill  

• receiving certain benefits.  

How to apply

You can find out how to apply for Warmer Homes Scotland on the Home Energy Scotland website.

Home Energy Scotland grant and loan

If you’re a homeowner, you can apply for the Home Energy Scotland grant and loan. You do not need to receive benefits. 

You could get up to £15,000 as a grant. You could get:  

• up to £7,500 for energy efficiency improvements, for example insulation  

• up to £7,500 for clean heating systems, for example heat pumps. 

The amount you can get depends on what improvements you want to make. For some improvements the maximum grant is less. 

You do not have to pay the grant back.  

You could also get an interest-free loan if the grant does not cover the full cost.

If you live in a rural area

You could get:  

• up to £1,500 extra for energy efficiency improvements  

• up to £1,500 extra for clean heating systems. 

If you’re not sure, Home Energy Scotland can tell you if you live in a rural area.

What you can get funding for

You can get a grant or loan for improvements that are recommend in your:

• Energy Performance Certificate (EPC) - you can find your EPC on the Scottish EPC register

• Home Energy Improvement Report  

• Home Renewable Selector Report. 

Home Energy Scotland can help you get these if you don't have them. 

How to apply

You can find out how to apply for the Home Energy Scotland grant and loan scheme on their website.

Energy Company Obligation scheme (ECO)

Energy Company Obligation scheme ending

The UK government have announced that the Energy Company Obligation scheme (ECO) will end on 31 March 2026.

This deadline might be extended to allow for work already started to be finished, but you might not be able to apply after this date.

Great British Insulation Scheme ending

The Great British Insulation Scheme is part of the ECO scheme. It was formerly called 'ECO+'.

The Great British Insulation Scheme (GBIS) will also end on 31 March 2026.

You can no longer apply for GBIS through GOV.UK, but some energy suppliers might still be accepting applications. You can check with your supplier. You can read more about the Great British Insulation Scheme on the Energy Savings Trust website.

You can read more about what to do if you've already applied for the Great British Insulation Scheme on GOV.UK.

You might be able to get help with things like insulation, boilers and improving your heating.

Who is eligible

If you own your own home or you rent from a private landlord, you might be eligible for the ECO scheme if:

• you get benefits that are based on your income

• you get Child Benefit

• you owe money to your supplier

• you are a prepayment customer and you run out of money.

How to apply

There are different ways to apply to the ECO scheme - it depends on which conditions you meet. Home Energy Scotland can tell you if you're eligible and how you can apply. You can find out how to contact Home Energy Scotland on their website.

You can read more about the ECO scheme on GOV.UK.

Get paid for installing energy improvements or generating electricity

The UK and Scottish governments sometimes offer incentives to households who reduce energy or create their own renewable energy. The schemes might be open for limited periods of time and you usually need to apply. 

Council Tax discount for energy efficiency

If you've made energy efficiency improvements to your property, you might be able to get a Council Tax discount. The discount only applies in the financial year when improvements were made.

You should contact your local council to ask about their scheme. Find out how to contact your local council on mygov.scot.

The Smart Export Guarantee

You can apply to get paid for the electricity you generate and export back to the National Grid. Check your energy supplier's website for information on how to apply. 

Choosing an installer

Once you know what energy improvements you need, you should get quotes from at least 3 different installers. This will help you know if you’re getting a fair price.

Look for installers who are members of a quality scheme that's recognised by the government, like MCS or TrustMark. You can read more about how to find a trustworthy trader. 

If you’re applying for funding for energy improvements, there might be rules about the type of installer you use. Your funding provider should give you more information about how to choose an installer.

If you get cold calls from an installer, don’t let them rush you into making any decisions. It's better to find an installer yourself. Don’t use an installer you haven’t had time to check.

If a salesperson asks you to sign something you should: 

• take time to read through the document in full - not just the first or last page. If you need more time to read it, ask them to wait or come back later 

• take a copy of anything you sign - if the sales person isn’t willing to give you a copy, don’t sign it 

• watch out for high-pressure selling – if a salesperson says things like “This deal is only available today" or "You’ll lose out if you don’t sign now” or “I can’t leave your house unless you sign”. This is a criminal offence. Call the police if they won't leave your house unless you sign something. 

Watch out for scams and false advertising

For example, an installer might make false promises about how much energy you’ll save or how much you’ll need to pay. 

Check if something might be a scam.

Before you get work done on your home

As well as finding a good installer and getting at least 3 quotes, you should:

• check if you need permission or approval

• check you and your installer have insurance

• get a written contract

• know what to do if there are any problems.

Read our advice about preparing to get work done on your home.