Government Grants for Air Source Heat Pumps in Scotland

A typical air source heat pump costs between £7,000-£13,000 to install, depending on house size, insulation, and desired temperatures.

A typical ground source heat pump system costs around £24,000, rising to around £49,000 if you need to dig a borehole.

The Home Energy Scotland Grant and Loan aims to help with the upfront costs, giving you a grant up to £7,5000 (or up to £9,000 if the household qualifies for the rural uplift) and borrow up to £7,500 as an optional loan.

The amount you can borrow covers up to 100% of the heat pump cost, up to a maximum of £7,500 (whichever is smaller).

The scheme is open to homeowners in Scotland. If you own the property you live in, your are eligible to apply.

Individuals undertaking self-build projects can also apply for home renewables systems or energy storage systems.

You're not eligible to apply for the Grant and Loan as a business owner, a landlord, a property developer, or a renter.

The amount of grant and loan funding you can apply for depends on what improvements you want to make.

If you're applying for any loan funds, we will also carry out affordability and credit checks. If your application is successful, Home Energy Scotland will send you a funding offer.

Funding operates on a first-come, first-served basis and is subject to availability or until the end of the financial year - whichever is sooner.

You cannot start work until you've received the funding offer in writing. If you receive a funding offer this financial year, you have up to nine months to carry out the work and claim your funding.

You may be able to combine the Home Energy Scotland Grant and Loan with other schemes and incentives. However, eligibility for this funding does not indicate eligibility for any other programmes of support.

Self-builders can apply for funding for home renewables systems, but not energy efficiency. You will need to provide planning permission documents with your application and title deeds with your claim.

If your loan application's successful, you'll need to pay an administrative fee of 1.5% of the total loan value - up to a maximum of £150 per application. But you can apply for multiple measures in one application, and this fee will be covered in your monthly repayments.

You will need to use a certified installer for some improvements.

Energy Saving Trust administers these loans and is authorised and regulated by the Financial Conduct Authority. All loans are subject to availability, and terms and conditions apply.

Read more about application conditions.

You can also borrow up to £500 per improvement (including up to £375 grant) for what are known as secondary improvements and up to £600 (including up to £450 grant) for heating controls.

You must combine a secondary improvement with one of the energy-efficient improvements or renewables systems listed above, such as heat pump installation.

Examples include cylinder thermostats, heating controls, or hot water jackets. Talk to our advisors for more information.