Scotland does not use the same scheme as England and Wales. Support here runs through Home Energy Scotland, which combines a grant with an interest-free loan, and there is an additional uplift for eligible rural and island properties — which covers a great deal of the Borders and parts of East Lothian.
The rules change from time to time and the figures below are indicative of the scheme as it has operated. Always confirm current amounts and eligibility directly with Home Energy Scotland before you commit, because the funding decision must come before the installation, not after.
The two parts of the funding
The support is structured as a grant you do not repay, plus an optional interest-free loan on top to cover the remaining cost. Households in eligible rural areas can qualify for an additional rural uplift on the grant element, recognising higher installation costs and the greater proportion of off-gas properties.
Funding is available for the heat pump itself and, separately, for energy efficiency measures such as insulation, which are often the sensible first spend. Many Borders properties get a better outcome by insulating first and sizing the heat pump to the improved fabric.
| Element | What it is | Notes |
|---|---|---|
| Heat pump grant | Non-repayable contribution | Applies to air source and ground source |
| Rural uplift | Additional grant for eligible rural or island postcodes | Much of the Borders qualifies — check your postcode |
| Interest-free loan | Optional, repayable over a set term | Covers remaining cost above the grant |
| Energy efficiency measures | Separate grant and loan pot | Insulation, glazing, draughtproofing |
| Installer requirement | MCS certified, in a consumer code | We are MCS certified and RECC members |
| Order of events | Apply and get approval first | Installing before approval usually forfeits funding |
The order matters more than anything else
The single most expensive mistake people make is having the heat pump installed and then applying. Funding is approved in advance against a specific quotation from an eligible installer. Work carried out before approval is generally not fundable retrospectively.
The correct sequence is: get a home energy assessment or advice call from Home Energy Scotland, obtain a compliant quotation from an MCS certified installer, submit the application, receive written approval, then have the work carried out and submit the completion paperwork.
Why MCS certification is not optional
- Funding requires installation by an MCS certified installer working to the MCS heat pump standards.
- MCS requires a proper room-by-room heat loss calculation rather than a rule-of-thumb sizing.
- It requires a performance estimate to be issued to you before you commit, so you can see expected running costs.
- Consumer code membership — we are RECC members — gives you defined protections and a complaints route.
- The MCS certificate is also what manufacturers and future buyers will ask for.
Eligibility points that catch people out
- The property normally has to be your main home, and ownership conditions apply.
- Funding is generally for replacing an existing heating system rather than adding a second one, though hybrid arrangements have their own rules.
- There may be conditions relating to the existing fuel type and whether the property is on the gas grid.
- Loft and cavity insulation recommendations often need to be addressed, because a heat pump on an uninsulated house will disappoint.
- Listed buildings and conservation areas can install heat pumps, but siting and consent need handling early — common around Melrose, Kelso and the East Lothian coastal villages.
What a compliant quotation should contain
A funding-ready quotation is much more detailed than a normal heating quote. It should include the room-by-room heat loss calculation, the specified heat pump model and output, the design flow temperature, radiator or emitter changes required, the hot water cylinder specification, the estimated annual performance, and the total cost broken down.
If a quote for a heat pump does not include a heat loss calculation and a design flow temperature, it is not a heat pump design — it is a price for a box. That distinction is the difference between a system that runs cheaply and one that runs on its immersion heater all winter.
Realistic expectations on running cost
A well-designed air source heat pump in a reasonably insulated Borders home should deliver several units of heat for each unit of electricity across a season. Whether that beats your current bills depends heavily on what you are replacing. Against oil or LPG, which is what most off-grid properties here run, the case is usually strong. Against mains gas, the comparison is closer and turns on design quality and electricity tariff.
The controllable variables are insulation, emitter sizing and design flow temperature. A system designed to run at a low flow temperature into generously sized radiators performs far better than the same appliance forced to run hot because the radiators were never upsized. Our guide to radiator sizing for heat pumps covers this in detail.
How we work with the process
We are MCS certified and RECC members, so our quotations are eligible for the funding routes. We carry out the heat loss survey, produce the design and performance estimate, and give you the documentation the application needs.
We will also tell you honestly if your property should have insulation work done first, or if a heat pump is not currently the right answer. Recommending a system that will not perform helps nobody, and the funding paperwork is a poor substitute for a good design.
Frequently asked questions
- Can I apply for funding after the heat pump is installed?
- Generally no. Approval must be in place before the work starts. Installing first and applying afterwards usually means forfeiting the grant, so contact Home Energy Scotland before committing to an installation date.
- Does my Borders postcode qualify for the rural uplift?
- Many do, but it is postcode-specific and the definition is set by the scheme. Home Energy Scotland can confirm your address in a single call, and it is worth doing before you plan a budget.
- Do I have to take the loan as well as the grant?
- No, the interest-free loan is optional. Some households take the grant only and fund the balance themselves; others use the loan to spread the remainder.
- Will I need new radiators?
- Often some of them, yes. A heat pump runs at a lower flow temperature, so emitters need to be larger to deliver the same heat. The heat loss survey identifies exactly which rooms need changes rather than replacing everything by default.
Get a funding-ready heat pump quotation
MCS certified and RECC members. We survey, calculate heat loss and produce the documentation the Home Energy Scotland application needs.