Grants & Loans Scotland 2023

Discover Available Grants, Loans, and Incentives for Homeowners and Businesses

Unlock Financial Support for Renewable Energy Upgrades in Scotland

Are you looking to unlock financial support for renewable energy upgrades in Scotland? Discover the various funding options and incentives available for renewable energy projects in Scotland. Learn how to access financial support and maximise your investment in renewable energy upgrades.

The Home Energy Scotland Grant and Loan

Are you a homeowner in Scotland who wants to make your home more energy-efficient? The Home Energy Scotland Grant and Loan can help you do just that.


The loan offers up to £6,000 for solar panel installations, which is enough to cover the average cost of a 3.5 kWp solar PV system. The loan is interest-free and can be repaid over a period of five or ten years, depending on the amount borrowed.

In addition to solar panels, the loan can also be used to finance other energy-efficiency improvements, such as:


  • New heating systems
  • Double glazing
  • Energy storage systems


To be eligible for the loan, you must be a homeowner in Scotland and have a property that is at least two years old. You must also have an energy performance certificate (EPC) that rates your home as D or below.


If you are interested in applying for the Home Energy Scotland Grant and Loan, you can visit the Home Energy Scotland website or call 0808 108 9414.

The Community and Renewable Energy Scheme (CARES)

The Community and Renewable Energy Scheme (CARES) is a Scottish Government initiative that provides funding to community organisations and charities to help them install renewable energy projects. CARES can cover up to 80% of the project costs, and it has helped to install over 600 renewable energy projects in communities across Scotland.


CARES is a great way for communities to reduce their carbon emissions and save money on their energy bills. It can also help to create jobs and boost the local economy.


To be eligible for CARES funding, your community project must meet the following criteria:


  • It must be owned and operated by a community organisation or charity.
  • It must be located in Scotland.
  • It must be a renewable energy project, such as solar panels, wind turbines, or biomass boilers.
  • The project must have a clear benefit for the local community.


If your community project meets these criteria, you can apply for CARES funding through the Local Energy Scotland website. The website has a wealth of information on CARES, including how to apply, what projects are eligible, and the latest funding rounds.

0% VAT rate on solar panels & Installations of energy-saving materials

Solar panels are now more affordable than ever.


Good news for homeowners in England, Scotland, and Wales! Solar panel purchases have been subject to a 0% VAT rate since April 2022, making them more affordable than ever. This means that you can save up to £1,000 in tax on the purchase of solar panels, and an average of £608 per year on your energy bills.


The 0% VAT rate is a great opportunity to invest in solar panels and save money on your energy bills. Solar panels can also help to reduce your carbon emissions and contribute to a cleaner environment.


The 0% VAT rate will end in April 2027, so it's important to act fast if you're considering investing in solar panels. With a breakeven point of just 12.9 years, solar panels are a wise investment that can save you money in the long run.


Northern Ireland residents may qualify for a reduced VAT rate

Residents of Northern Ireland are not eligible for the 0% VAT rate on solar panels, but some may qualify for a reduced 5% VAT rate if they meet specific benefit criteria. To find out more, you can contact the Northern Ireland Department for the Economy.


No application is required for the 0% VAT rate. Your installer will include the reduced VAT rate in your quote.

The Smart Export Guarantee

The Smart Export Guarantee: A great way to save money and earn income


Since 1 January 2020, the Smart Export Guarantee (SEG) has made it a requirement for large energy providers in the UK to compensate homeowners for the renewable electricity they export to the National Grid. This is a great opportunity for homeowners to save money on their energy bills and even earn some extra income.


Under the SEG, homeowners are paid for every unit of electricity they export to the grid. The amount you earn will depend on the amount of electricity you export, the tariff offered by your energy supplier, and the time of day you export the electricity.


On average, households can save £159 per year through the SEG, in addition to the anticipated energy bill savings amounting to around £450 annually. Some suppliers offer attractive rates of up to 24p/kWh, which means you could earn a significant amount of money by exporting your excess electricity.


The SEG is a great way to reduce your carbon footprint and contribute to a cleaner environment. By exporting your excess electricity, you are helping to balance the grid and make the UK's energy system more sustainable.


If you are a homeowner with solar panels, you should definitely consider signing up for the SEG. It is a great way to save money and earn income, while also helping to protect the environment.

Here are some additional tips for maximizing your earnings from the SEG:


  • Export your electricity during peak times, when the grid is most in need of it.
  • Install a smart meter, so you can track your energy usage and export your excess electricity accordingly.
  • Choose an energy supplier that offers a competitive SEG tariff.


Warmer Homes Scotland: Funding for home improvements

Warmer Homes Scotland is a government-funded program that provides grants to homeowners and private landlords in Scotland to help them improve the energy efficiency of their homes. This can include installing solar panels, as well as other improvements such as insulation and heating upgrades.


To qualify for a grant, your home must meet certain criteria, such as having a low energy rating, being smaller than 230m², and meeting the standards set by the Housing (Scotland) Act 2006. You must also own your home or be a tenant of a private landlord for at least six months.


In addition to these general criteria, there are also a number of specific factors that can affect your eligibility for a grant, such as:


  • Whether you have central heating
  • Whether someone in your household is over 75
  • Whether you have a DS1500 or BASRiS medical certificate
  • Whether you receive certain benefits

You can find all the eligibility criteria on the Home Energy Scotland website. While grant assessments are currently on hold, you can still apply for future assessment. Contact Home Energy Scotland at 0808 808 2282 or use their online tool to apply.


Here are some additional tips for applying for a Warmer Homes Scotland grant:


  • Make sure you have all the required documentation, such as your energy performance certificate (EPC) and proof of tenancy.
  • Be clear about what improvements you want to make to your home.
  • Explain how the improvements will benefit you and your household.
  • Be patient - the application process can take some time.