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Home Energy Grants and Schemes

Funding for Landlords

Landlords can apply for a grant of up to 1,200 through the Green Homes Cashback scheme for a whole range of measures such as a boiler, double glazing, insulation, LED light bulbs and heating controls.

They can combine this with an interest free loan from the Small Business Loans scheme of up to 100,000 if further funds are needed.

Landlords can combine this grant with an interest free loan from the Small Business Loans Scheme of up to 100,000 if further funds are needed.

To apply please contact your local Home Energy Scotland 0808 808 2282, and ask to speak to a Business Advisor or visit the Energy Saving Trust website.

Funding for Appliances

The Scottish Government is offering private sector landlords up to 500 towards replacing old and inefficient appliances in their rented properties.

Eligible appliances include:

  • fridges
  • freezers
  • fridge-freezers
  • dishwashers
  • washing machines

All appliances purchased need to have an A++ or higher energy rating.

The grant value will depend on the appliance being replaced and the efficiency rating of the new one purchased.

For full details on the scheme including eligibility requirements and measures, please visit the Energy Saving Trust.

How do I apply for funding?

These offers are open on a first-come first served basis.

In order to apply for financial assistance you should phone your local Home Energy Scotland 0808 808 2282 to discuss your plans.

They will check there is no other financial assistance available for this work and help with an initial eligibility check, as only certain measures are eligibleare eligible for the cashback scheme.

The Energy Saving Scotland advice centre will then refer you to the cash back scheme if you are deemed a suitable candidate.

There are several other steps that you will need to take before you obtain financial assistance, for more information about these steps please refer to the Energy Saving Trustwebsite.

Find out more

For further information about the Green Homes Cashback Scheme please refer to the Energy Saving Trust website.

Green Deal

A Government-backed scheme to help you make cost-effective energy saving improvements. Instead of paying for the full cost of the improvements up front, you pay over time through a charge added to your electricity bill.

ECO (Energy Company Obligation)

Funding from the big six energy suppliers to support energy improvements for people on certain benefits, for those in solid wall properties and for households in the poorest parts of the country.

Find out more about Green Deal and ECO.

Feed-in Tariffs

On-going financial support for people generating electricity from renewable sources such as solar PV and wind.

Find out more about generating your own energy.

Renewable Heat Premium Payment (RHPP)

A one-off payment to households installing renewable heating systems such as heat pumps, wood boilers or solar water heating.

Find out about phase 2 of the RHPP.

CARES (Community And Renewable Energy Scheme)

CARES has been established by the Scottish Government to encourage the local or community ownership of renewable energy across Scotland. It's a one stop shop for support, advice and loans to community groups and rural businesses who wish to generate renewable energy.

Find out about CARES

Paying reduced rate VAT on energy-saving materials

When you have certain energy saving materials and equipment installed in your house, you may be charged a lower rate of VAT than normal. Your building contractor should charge these lower rates on the installation work as well as on the materials and equipment itself. If the materials and equipment go into a new house at the time of construction, you don't pay any VAT at all.
There are only certain materials and equipment that can be charged at the lower rate when installed. However, the range is wider if the job is being funded by certain grants, so it's worth seeing if you can get an appropriate grant for the installation.
Your building contractor will know what work attracts the reduced rate of VAT and will charge you at the correct rate. This guide gives you an idea of the kind of work that is charged at the lower rate.


What qualifies for the lower rates of VAT?

Installation of any of the following qualifies for the lower rate of VAT:

  • controls for central heating and hot water systems
  • draught insulation (eg around windows and doors)
  • insulation on walls, floors, ceilings, lofts, etc
  • solar panels
  • wind turbines
  • water turbines
  • ground-source heat pumps
  • air-source heat pumps
  • micro combined heat and power units
  • wood-fuelled boilers

You can only get these lower rates if the energy saving materials are actually installed, and the work is done on your home. You'll be charged the lower rate on the installation work itself as well as the materials.
You'll also get the lower rate on any necessary extra work that needs to be done as part of the installation - this doesn't apply if you're having them installed as part of a larger project such as building a new roof or an extension, or installing a central heating system.

What doesn't qualify for the lower rate of VAT?

You can't get the lower rate of VAT on all energy saving materials and equipment. The following aren't covered by the scheme:

  • energy efficient boilers
  • secondary or double glazing
  • low emission glass
  • energy efficient fridge freezers
  • materials and equipment that you buy without having them installed

However, you may be able to get a grant towards the cost of installing energy saving equipment, some of which then becomes eligible for the lower rate of VAT.
See the section in this guide on grants for energy saving equipment.

Grants for energy saving equipment

If you get a grant towards the installation of certain energy saving equipment, and it's being installed in your main or only home, you'll pay a lower rate of VAT.
If you're 60 or older, you'll get the lower rate on the installation, maintenance or repair of a central heating system, and a renewable source heating system.
If you get one of the following benefits, you'll get the lower rate on the installation of heating appliances such as specific types of immersion heaters, boilers, storage heaters, gas heaters and radiators:

  • child tax credit - other than the family element
  • council tax benefit
  • disability living allowance
  • personal independence payment
  • disablement pension
  • housing benefit
  • income-based job seeker's allowance
  • income support
  • war disablement pension
  • working tax credit

The reduced rate of VAT also applies to grant-funded repairs and replacements of this kind of equipment, even if the original system was not grant-funded.

Contact information

Home Energy Advice Team
Kilncraigs, Greenside Street, Alloa, FK10 1EB
Tel: 01259 450000
Email: