The Scottish Government set out its response to Recommendation 12 of the Heat Pump Sector Deal Expert Advisory Group on 11 November 2022, confirming the funding limits that apply to fabric energy efficiency measures and restating its intention to change how part of that support is paid1.
Under the Home Energy Scotland Grant and Loan Scheme, the maximum funding for energy efficiency measures is £15,000, including a maximum cashback amount of £6,0001. The scheme covers measures such as solid wall insulation, cavity wall insulation, flat roof insulation and room-in-roof insulation, and is managed and administered on behalf of the Scottish Government by the Energy Saving Trust1.
The response states that the cashback element of the Home Energy Scotland funding offer will be replaced with a standalone grant1.
"we have committed to replace the cashback element of the Home Energy Scotland funding offer with a standalone grant"
The response adds that the standalone grant will retain the focus on energy efficiency measures and zero emissions heating1. No date for the change has been reported.
Separate support exists for small and medium sized businesses based in Scotland through the SME Loan and Cashback scheme, which offers interest free loans from £1,000 up to £100,000 for energy efficiency measures and renewable energy technologies1. SMEs can apply for a 75% cashback grant of up to £10,000 towards the cost of a renewables heating system, and a further 75% cashback grant of up to £20,000 for energy efficiency measures1.
The response also refers to the Supply Chains Delivery Plan, in which the government committed to exploring a complementary approach to subsidising Green Heat works through a new supplier led funding scheme, delivering support directly to suppliers1.
| Item | Figure |
|---|---|
| Maximum funding, energy efficiency measures (Home Energy Scotland Loan and Cashback) | £15,000 |
| Maximum cashback within that figure | £6,000 |
| SME interest free loan range | £1,000 to £100,000 |
| SME cashback, renewables heating system | 75%, up to £10,000 |
| SME cashback, energy efficiency measures | 75%, up to £20,000 |
Why it matters for households
Fabric measures reduce how much heat a home loses, so they lower demand before any change to the heating system. The £15,000 ceiling and the £6,000 cashback limit define the most a household can draw from this route for insulation and similar work1. The commitment to a standalone grant matters because it changes the shape of the offer: cashback is a repayment of money already spent, while a grant is paid without that link. The response does not set out the grant's value, eligibility rules or start date, so those details have not been reported1.
For a household weighing up Home Energy Grants in Scotland, the practical position is that the loan and cashback route remains the published offer at the figures above, with the standalone grant described as a commitment rather than a live scheme1. Homes considering a heat pump alongside insulation can note that the response ties the two together, describing fabric first work as preparation for zero emissions technologies1.
What happens next
The response commits to replacing cashback with a standalone grant but gives no timetable1. It also commits to exploring a supplier led funding scheme for Green Heat works through the Supply Chains Delivery Plan, again without a date1.