Looking to upgrade your heating, add solar panels, or make your home more efficient? There’s good news: In 2025, Scotland offers a range of grants, loans, and funding schemes to help make renewable energy more affordable.
Here’s your complete guide—clear, current, and jargon-free.
Why Funding Matters for Going Green
Renewable energy tech like heat pumps, solar panels, and battery systems are fantastic long-term investments—but upfront costs can be a barrier. That’s where government-backed funding schemes come in.
These grants and loans can:
- Reduce the upfront cost
- Improve your return on investment
- Help you qualify for energy performance targets
- Make going green more accessible for everyone
Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme is available across the UK, including Scotland. It offers:
- £7,500 for Air Source Heat Pumps
- £7,500–£9,000 for Ground Source Heat Pumps
- £5,000 for Biomass Boilers (in rural areas only)
To qualify:
- You must own the property
- The system must be MCS-certified
- You’ll need a valid EPC (Energy Performance Certificate) with no outstanding insulation recommendations
This scheme is open to homeowners, landlords, and small businesses.
Home Energy Scotland Loans & Cashback
This is one of the most accessible funding schemes for Scottish homeowners.
You can apply for:
- Up to £15,000 interest-free for energy efficiency or renewable measures
- Up to £6,000 specifically for heat pumps
- Cashback on solar, insulation, and more (subject to availability)
This is a loan, not a grant—but it’s 0% interest, and the application is relatively straightforward. PEAK can support your application as part of our service.
Smart Export Guarantee (SEG)
If you have solar panels and export energy back to the grid, you may be eligible for SEG payments.
- Available from energy suppliers
- Payments based on how much power you export
- Replaces the old Feed-in Tariff (FiT)
You’ll need a smart meter and an MCS-certified solar installation to qualify.
Warmer Homes Scotland Scheme
For eligible low-income or vulnerable households, this scheme offers fully-funded energy efficiency upgrades and renewable heating systems.
Includes:
- Heat pumps
- Insulation
- Draught-proofing
- New heating controls
You must meet eligibility criteria (e.g. income threshold, benefit status), and be referred by Home Energy Scotland.
ECO4 (Energy Company Obligation)
The ECO4 scheme requires energy suppliers to help improve the energy efficiency of vulnerable or low-income homes.
This can include:
- Free insulation
- Heating system upgrades
- Renewables like heat pumps and solar (in some cases)
Eligibility is based on benefit status or income and property type. This is a key route for support for those who don’t qualify for loans.
0% VAT on Renewables (Until at Least 2027)
In 2025, you pay zero VAT on:
- Solar panel systems
- Heat pumps
- Battery storage
- Home EV chargers
- Energy-saving insulation materials
This is applied automatically to qualifying installations—no application needed. It makes a significant difference to overall cost.
Can You Combine Grants and Loans?
Yes, in many cases.
For example:
- You can apply for a BUS grant and still use a Home Energy Scotland loan for the balance
- You can receive SEG payments while having benefitted from a loan or grant
- VAT relief applies regardless of other support
PEAK helps you build a full funding strategy around your project—so you maximise every available option.
What’s the Application Process Like?
Most funding follows these steps:
- Property assessment and EPC
- Choose MCS-accredited installer (like PEAK)
- Receive a quote and apply for funding
- Await approval (typically 2–6 weeks)
- Proceed with installation and confirm completion
- Submit any final documentation for payment or claim
Our team will walk you through the paperwork so you don’t miss a thing.
Who Can Apply for Renewable Grants in Scotland?
- Homeowners
- Private landlords
- Businesses (in some cases)
- Tenants with permission (specific to some schemes)
- Rural property owners (some enhanced support)
Even if you’ve been declined in the past, a reassessment or better EPC rating may change your eligibility.
How PEAK Renewables Supports You
We don’t just install your system—we:
- Help determine what you qualify for
- Prepare EPC reports if needed
- Complete grant application paperwork
- Provide installation documents for evidence
- Liaise with Home Energy Scotland or scheme providers
You focus on the future—we’ll handle the forms.
Book a Free Funding Assessment Today
Unsure what you’re eligible for? No problem.
We offer a free consultation where we’ll:
- Check your EPC and property type
- Review your goals (heating, solar, storage)
- Build a funding and installation plan tailored to you
Book online or give us a call. There’s no pressure—just the facts.
