A guide to the Home Energy Scotland loan

Some of the government support is more localised, and so if you’re in Scotland, you may have heard of the Home Energy Scotland Loan. As a tradesperson, it’s important to keep on top of these schemes because if your customers ask for your advice, you’ll be able to offer the right solution and potentially win more work in the process.

So, here’s a quick lowdown on what the scheme covers and what it means for you.

What does the scheme offer?

The Home Energy Scotland Loan is designed to make homes warmer and more comfortable by helping homeowners install a range of energy saving measures, through an interest-free loan funded by the Scottish Government. To find out if they’re eligible, all your customers need to do is call 08088 082 282 and an advisor will ask them a few simple questions. If they qualify, they’ll be given access to an online application form for their case to be assessed – part of which will require a quote from an installer for the specified improvements.

If they’re successful, they’ll just need to pay an administrative fee of 1.5% of the loan value (up to a maximum of £150).

There are a few important things for you to note if your customer is making use of the loan:

You cannot start work on any installations until your customer has received the loan offer in writing
You can combine the Home Energy Scotland Loan with other schemes and incentives
The loan is only available for homeowners, so if you’re working for a property developer, business or landlord – it’s a no go!

What jobs does it cover?

The whole point of the scheme is to help homeowners make their homes more energy efficient, so the measures that you can install are aligned with this. Funding is split into two areas; energy efficient improvements and renewable systems.

Energy efficient improvements

Your customers can borrow up to £15,000 for these improvements. On top of this, to help encourage your customers to invest in these measures, the Scottish Government is offering up to 40% cashback for some eligible energy efficiency measures and 75% for certain renewable heating systems (up to £6,000). If this doesn’t encourage your customers to take on more work – then what will?

Here are some of the projects you can consider:

Solid, external and internal wall insulation
Heating system (gas, LPG or oil boilers)
Heating system (warm air units or high heat retention electric storage heaters)
Gas connection
Glazing
Insulated doors
Flat roof or room-in-roof insulation
Loft, floor or cavity wall insulation

Renewable Systems

Your customers can apply for up to two renewable systems per home worth up to £17,500, plus an energy storage system up to a maximum of £6,000. This can include a £500 incentive for installation of a heat meter alongside a heat pump.

Here are some of the solutions included:

Wind or hydro turbines
Solar photovoltaic (PV)
Solar water heating systems
Energy storage systems (heat or electric batteries)
Hybrid PV-solar water heating systems
Heat pumps (either air source to water, ground source to water, water source to water or hybrid air source to water)
Heat meter (if installed alongside a heat pumps
Biomass boilers or stoves (non-automated, non-pellet stoves or room heaters are not eligible)
Connections to a renewably powered district heating scheme

Funding and cashback are only available while funds last, and is issued on a first-come, first-served basis. For a full break down of the funding available for each measure click here.

What's in it for tradespeople?

All in all, this is great news for tradespeople in Scotland as it has the potential to bring in more work. By making these measures more affordable for homeowners across the country, more of your customers will have the chance to take on these improvements, meaning installers can expect to have busy diaries if they get behind the scheme. But, if you really want to make the most of potential work on offer, then you need to check your qualifications.

What qualifications do I need?

There are steps in place that you’ll need to go through if you want to carry out work under the scheme. In general, it’s always recommended that you look into becoming a Green Deal certified installer – you can find out how to start this process here. Also, if you’re taking on gas or boiler work, you’ll need to go on the Gas Safe Register (or OFTEC registered if it’s an oil boiler).

There are also more specific requirements depending on the type of measure you’re working on.

Renewable Systems

You’ll need to be certified under the Microgeneration Certification Scheme (MCS) for the system you’re installing (except for micro-hydro systems*).
It’s also recommended that you join the Energy Saving Trust’s list of renewable installers

Energy storage systems

Again, you’ll need to be certified under the MCS scheme for the renewables system that will be working alongside the battery
You’ll need to be a member of the Trading Standards Institute accredited consumer code which covers energy storage
You have to meet the manufacturers’ guidelines for the system being installed and have undertaken any necessary training for the installation
And you’ll need to meet the Institute for Engineering and Technology’s code of practice (for electric batteries only)

For more information on the support available to your customers, header over to the hub