Funding process

How the Home Energy Scotland funding process actually works

Written for Scottish homeowners trying to understand the order of steps before they commit to a heat pump installation..

  • Gas Safe registered
  • MCS certified and RECC member
  • Vaillant Advanced Installer
Homeowner reviewing paperwork alongside an installed heat pump
Approval typically needs to be granted before installation work begins

Covering:Kelso, Melrose, Galashiels, Coldstream, Duns, Haddington, Dunbar, North Berwick, Dalkeith

Funding for heat pumps in Scotland is administered differently from the rest of the UK, and the biggest source of confusion we hear is homeowners quoting figures or schemes from English websites that simply do not apply north of the border.

In Scotland, support runs through Home Energy Scotland, working on behalf of the Scottish Government, offering a grant and an optional interest free loan. This guide sets out the process in the order it actually happens, so you know what to expect and when, rather than jumping straight to an installer quote.

What is on offer, in general terms

Home Energy Scotland can offer a grant towards the cost of an air source heat pump, and separately an interest free loan that can be used alongside it to cover more of the remaining cost. Properties in remote rural or island areas may be eligible for a higher level of support, sometimes referred to as a rural uplift.

At the time of writing, published headline figures exist for these amounts, but they are reviewed periodically, so always check current terms with Home Energy Scotland directly rather than relying on a figure from a blog post or a supplier's marketing.

Scotland is not the Boiler Upgrade Scheme

The Boiler Upgrade Scheme is a UK Government grant that applies in England and Wales only. It does not operate in Scotland. If you see it mentioned online in relation to heat pump costs, it is not something a Scottish homeowner can apply for. Home Energy Scotland is the equivalent route here, and it works differently in both structure and process.

The order the process runs in

Approval needs to be in place before work starts; this is not something to retrofit after the event.
StepWhat happens
1. Free adviceContact Home Energy Scotland for impartial advice on whether a heat pump suits your property
2. Survey and quoteGet a heat loss assessment and installation quote from an MCS certified installer
3. ApplicationSubmit your application to Home Energy Scotland with the required supporting documents
4. ApprovalWait for written approval before any installation work begins
5. InstallationWork is carried out by your certified installer, matching the approved scope
6. Evidence and paymentSubmit the required evidence after completion for the grant or loan to be released

Eligibility basics

  • The property is generally your main residence in Scotland
  • The installer must be certified, typically to MCS standards, for the specific measure being installed
  • The installation needs to be signed off and approved before work begins, not applied for retrospectively
  • Additional criteria may apply depending on the specific fund and your circumstances

Evidence you are likely to be asked for

  • Proof of ownership or tenancy and that the property is your main home
  • The installer's quote and certification details
  • Photographic or paperwork evidence of completion, depending on the fund's requirements

Why the order matters

The single most common mistake we see is a homeowner arranging installation first and applying for funding afterwards. Because approval is generally required before work starts, doing it in the wrong order can mean losing access to funding altogether. Speak to Home Energy Scotland and get your survey done before you agree a start date with any installer.

Frequently asked questions

Can I apply for funding after the heat pump is already installed?
Approval is generally required before work begins, so applying after installation risks missing out. Always check the current process with Home Energy Scotland before booking any work.
Does the Boiler Upgrade Scheme apply if I live in the Scottish Borders or East Lothian?
No. The Boiler Upgrade Scheme is for England and Wales only. Scottish homeowners should look to Home Energy Scotland instead.
Do I need to use a specific installer to qualify?
Installers generally need to hold the relevant certification, commonly MCS, for the funding to apply. Confirm this directly with your installer and with Home Energy Scotland.
What is the rural uplift?
It refers to potentially higher support levels for homes in remote rural or island areas, reflecting typically higher installation costs in those locations. Ask Home Energy Scotland whether your postcode qualifies.
Where do I get accurate, current figures?
Directly from Home Energy Scotland. Funding levels are reviewed periodically, so treat anything you read elsewhere as a starting point rather than a guarantee.

Thinking about a heat pump and want the process explained plainly

We can talk you through where a survey and quote fit alongside your Home Energy Scotland application.