Home » Funding, Grants and Loans

Securing funding, grants, or loans can make installing renewable energy or making home improvements more affordable and accessible.

Currently there are 5 funding Schemes available to residents and businesses in Arran via Home Energy Scotland. 

• Home Energy Scotland Grant and Loan – Rural Uplift.
• Private Rented Sector Landlord Loan.
• Smart Export Guarantee.
• Warmer Homes Scotland. 
• Used Electric Vehicle Loan.

However, some other funding is available through other sources and area based schemes. We have split the information into sections for homeowners and businesses. 

Often the online funding eligibility checkers may not be accurate, so we would advise you to call firsthand and speak with an adviser.

Funding for Homeowners

Heat and Energy Efficiency Scotland: Area Based Scheme

North Ayrshire Council has successfully secured funding from the Scottish Government’s Heat and Energy Efficiency Scotland: Area Based Schemes (HEES:ABS) programme to enhance the energy efficiency of privately owned properties within North Ayrshire. All project areas are identified in line with guidance issued by the Scottish Government.

To deliver this scheme the Council are working with Managing Agents, M-Four, and the Scottish Government’s Home Energy Scotland to engage with homeowners. Homeowners within eligible areas will receive a letter from M-Four inviting them to register their interest in the scheme. M-Four will then assess if they are eligible for assistance from this fund or other funding routes. If you have further questions relating to the Area Based Scheme, please contact M-Four:

• by telephone: 0800 471 4738
• by email: contact@m-four.org

Otherwise, please contact Home Energy Scotland on 0808 808 2282 to register your interest.

Home Energy Scotland Grant and Loan – with Rural Uplift

The Home Energy Scotland Grant and Loan Scheme provides homeowners in Scotland funding, grant, interest free loan or a combination of both to install clean heating systems and energy efficiency measures. 

The clean heating systems such as heat pumps, grant funding of up to £7500 is available, with an additional £7500 of funding available as an optional interest free loan. 

For energy efficiency measures such as insulation, grant funding is available up to 75% of the combined cost of measures up to a maximum grant amount of £7500. The remainder of funding requested can be taken up as an optional interest free loan up to the maximum funding limit per improvement. 

An uplift of £1500 is available for rural and island homes to both the clean heating and energy efficiency grants, meaning rural households can claim up to £18000 in grant funding. 

More information on the application process can be found here.

Warmer Homes Scotland 

Government-funded support to install a range of energy saving home improvements for eligible homeowners and private sector tenants who struggle to heat their home.

Below are examples of what the funding, grants or loans could cover. This list may not be definitive.

• Heating and Hot Water
• Cavity Wall Insulation
• Draught-proofing
• Solid Wall Insulation
• Energy Storage
• Heat Pumps

Call Home Energy Scotland on 0808 808 2282 for more details.

ECO4

The Energy Company Obligation (ECO4) is a UK government scheme running from April 2022 to March 2026, aiming to reduce fuel poverty and lower carbon emissions by improving the energy efficiency of homes, particularly those occupied by low-income and vulnerable households. 

Services Covered:

• Insulation: Installation of loft, cavity wall, underfloor, and solid wall insulation to reduce heat loss.
• Heating Upgrades: Replacement of inefficient boilers with energy-efficient condensing boilers or low-carbon heating alternatives.
• Renewable Technologies: Installation of solar panels and heat pumps to promote the use of renewable energy sources.
• Other Measures: Draught-proofing, double glazing, and other improvements to enhance overall energy efficiency.

Eligibility Criteria:

To qualify for ECO4 funding, households must meet specific criteria:

1. Benefit Recipients: At least one occupant must receive one of the following benefits:
   • Income-based Jobseeker’s Allowance (JSA)
   • Income-related Employment and Support Allowance (ESA)
   • Income Support (IS)
   • Pension Credit Guarantee Credit (PCGC)
   • Working Tax Credit (WTC)
   • Child Tax Credit (CTC)
   • Universal Credit (UC)
   • Housing Benefit
   • Pension Credit Savings Credit (PCSC)
   • Child Benefit (subject to income thresholds)
   • Warm Home Discount Scheme Rebate
2. Property Eligibility: The scheme targets properties with energy efficiency ratings of D, E, F, or G, focusing on the least efficient homes.
3. Local Authority Flexibility (ECO4 Flex): Local authorities can refer households they identify as vulnerable to living in a cold home or those struggling with fuel poverty, even if they do not receive the specified benefits.

It’s important to note that eligibility criteria can vary, and additional factors may influence qualification.

For the most accurate and up-to-date information, it’s advisable to consult official resources or contact your local authority. 

ECO4 funding is distributed through energy suppliers or accredited installers. You can contact your current energy supplier to see if they participate in the scheme.

The Great British Insulation Scheme (GBIS)

The Great British Insulation Scheme, formerly known as ECO+, is a government initiative administered by Ofgem to improve the energy efficiency of the least efficient homes in Great Britain. The scheme aims to reduce fuel poverty and lower energy bills by providing insulation upgrades.

The scheme supports:

• Low-income and vulnerable households.
• Homes with an Energy Performance Certificate (EPC) rating of D to G.
• Properties in Council Tax bands A to D in England, and A to E in Scotland and Wales.

How Does It Work?

Unlike the ECO4 scheme’s “whole house” approach, this program focuses mainly on single insulation measures. Medium and large energy companies are required to implement measures that reduce energy consumption.

You can check if you are eligible for the scheme here. 

Funding, Grants and Loans for Businesses

Community Renewable Energy Generation Fund

North Ayrshire’s Community Renewable Energy Generation Fund (CREGF) scheme invites applications from community organisations to support renewable energy projects in North Ayrshire. The aim of the project is to:

• increase the level of community owned renewable energy generation opportunities
• support North Ayrshire’s target of achieving net-zero carbon emissions by 2030
• accelerate community benefit from local renewable energy generation

Please see CREGF application for more information and to apply for funding. 

Private Rented Sector Landlord Loan

The Private Rented Sector Landlord (PRSL) loan provides funding to private landlords in Scotland to enhance the energy efficiency of their rental properties, which must be listed on the Scottish Landlord Register and not be holiday or second homes. Landlords with five or fewer properties can borrow up to £100,000, while those with six or more can borrow up to £250,000. The loan covers costs for energy efficiency improvements, renewable technologies, and energy storage systems.

Below are examples of what the funding could cover. This list may not be definitive.

• Heating and Hot Water
• Cavity Wall Insulation
• Draught-proofing
• Solid Wall Insulation
• Energy Storage
• Heat Pumps
• Floor, Roof and Internal and External Wall Insulation
• Air Source Heat Pumps
• Solar PV
• Tanks, Pipe and Radiator Insulation

Call Home Energy Scotland on 0808 808 2282 for more details.

HIE Green Grant Fund

The Green Grant Fund aims to support businesses and social enterprises across the Highlands and Islands to transition to net zero.

The funding is a non-repayable grant of up to £250,000, which will cover between 10% and 40% of the total cost of a project. The minimum grant award is £20,000. Projects with a total cost of £50,000 or less are therefore unlikely to be eligible.

Projects can include anything that helps businesses and social enterprises to reduce carbon emissions and make progress towards achieving net zero, for example through energy efficiency measures, renewables, or waste management.

HIE’s contribution to projects will be based on the financial need of the business or social enterprise. Applicants will be required to provide financial information on request to allow an assessment to be made.

In addition, the funding can be used towards capital investment, including but not limited to purchasing equipment, fixtures, fittings, and installation costs. Furthermore, you will need to demonstrate that the funding will actively reduce your carbon emissions.

More information on the application process can be found here.

SME Loan Scheme

The SME loan scheme offers loans up to £100k for low energy emission technologies on business sites within Scotland.

Funding Information:

• Up to £100k and/or cashback grant up to £30k
• 75% of eligible costs up to a maximum of £20k can be claimed for energy efficiency measures
• 75% of the eligible costs up to a maximum of £10k can be also claimed for a range of renewable heat measures (e.d heat pumps and biomass boilers)
• The grant could be used to install renewable sources, upgrade heating and cooling improve installation, and install LED lighting

More information on the application process can be found below.

Energy Saving Trust Small Business Loans (Scotland)

This grant is an SME loan of up to £20,000 supporting small and medium businesses to reduce their carbon emissions by transitioning into more energy efficient technologies and methods. Projects include installation of biomass boilers, upgrading to energy efficient lighting and heating, insulation, installation of Solar Panel PV, and voltage optimization.

More information on the application process can be found below.

https://energy.zerowastescotland.org.uk/SMELoan

People’s Postcode Trust

The grant offers financial support (£500-£20,000) to SMEs, community groups and registered charity organisations based in Scotland that improve biodiversity, respond to climate emergencies and promote sustainability.

Funding Information:

• Offering £500-£20,000
• Funds to be spent within 18 months of receipt
• Application opens on the 2nd of October for 24 hrs

More information on the application process can be found below. 

https://www.postcodetrust.org.uk/apply-for-a-grant

The Pebble Trust

Offers grants up to £10,000 to charities, communities, and businesses that promote sustainability, environmental protection, and community development. 

More information on the application process can be found below. 

https://www.thepebbletrust.org/grant-applications

Used Electric Vehicle Loan for Businesses

The Used Electric Vehicle Loan for Businesses offers businesses in Scotland interest-free loans to purchase electric cars, vans, motorcycles, utility vehicles, and hydrogen cars.

More information on the application process can be found below.

https://findbusinesssupport.gov.scot/service/funding/used-electric-vehicle-loan-for-businesses

Office for Zero Emission Vehicles – Electric Vehicle Chargepoint Grant

The Office for Zero Emission Vehicles (OZEV) is making funding available to help with the cost of installing electric vehicle chargepoint sockets at commercial and residential properties across the UK. The authorised installer can claim the grant from OZEV on the applicant’s behalf. You must complete the installation within 90 days of approval.

The Electric Vehicle (EV) Chargepoint Grant Scheme provides £350 or 75% off the cost of buying and installing a socket at a flat you own or rent, as long as it has a private off-street parking space. If you own or rent a flat in the UK (excluding the Channel Islands or Isle of Man), you are eligible to apply.

In addition, residents can apply for this grant if:

• they own and live in a flat, or rent any residential property
• the home has its own private off-street parking space
• they own an eligible vehicle

Installation must be completed within 90 days of the application being approved.

More information on the application process can be found below.

https://www.gov.uk/electric-vehicle-chargepoint-grant-household

Our funding, grants and loans page is checked and updated regularly as funding, grants and loans open and close.

Next Steps?

Now you know what funding may be available to you now is the time to explore what steps you need to take before you take the next cost and planet saving steps to making your home more energy efficient. You can read more about the process for using funding, grants and loans here.

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