Grants & funding

Renewable energy funding in Scotland, in plain language.

Eight schemes between them cover almost every renewable install in Scotland — four domestic, four commercial. Below: what each one is, who it's for, how much it's worth, and what we handle for you. Updated as the rules change.

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Boiler Upgrade Scheme (BUS) Home Energy Scotland Loan Smart Export Guarantee (SEG) Zero VAT until April 2027 CARES (Community and Renewable Energy Scheme) SME Loan + Cashback Business Energy Scotland Public Sector Energy Efficiency Loans

Domestic

For homeowners and private landlords.

Boiler Upgrade Scheme (BUS)

£7,500

Grant · Domestic

The BUS is a UK government grant deducted at point of sale on MCS-certified air source or ground source heat pump installs. It applies in Scotland, England and Wales. We claim it on your behalf, so the deduction shows on your quote directly — there's no separate application for you to complete.

Eligibility

  • Your property must have a valid Energy Performance Certificate (EPC)
  • The EPC must have no outstanding recommendations for loft or cavity wall insulation
  • You must own the property (or have permission from the landlord)
  • The install must be MCS-certified

What we handle

We do the entire BUS application end-to-end. You sign one document.

Home Energy Scotland Loan

Up to £15,000

Interest-free loan · Domestic

A Scottish Government-funded interest-free loan covering renewable energy installs, fabric upgrades, and EV charging. Repaid over up to 12 years. Commonly used to cover the balance after BUS, or to fund a solar/battery install in full.

Eligibility

  • Property must be in Scotland
  • Loan amount and term depend on technology and property type
  • You must be the homeowner (or a private landlord)
  • A Home Energy Scotland adviser will confirm eligibility before application

What we handle

We refer you to Home Energy Scotland for the eligibility conversation and provide the technical paperwork (quotes, MCS certificates, heat loss data).

Smart Export Guarantee (SEG)

X–Y p/kWh exported

Income · Domestic

Your energy supplier pays you for surplus electricity exported to the grid. Each supplier sets their own rate — current rates vary from low single digits to over 15 p/kWh on the best smart-tariff plans. We register the system with your supplier as part of commissioning.

Eligibility

  • MCS-certified solar PV (or wind, micro-CHP, anaerobic digestion, hydro)
  • Smart meter required
  • Any licensed electricity supplier in Great Britain is required to offer at least one SEG tariff

What we handle

We register the install with your supplier under SEG and lodge the MCS certificate. Rate is set by your supplier.

Zero VAT until April 2027

20% saving

Tax relief · Domestic

The UK government has reduced VAT on energy-saving materials and their installation to 0% until 31 March 2027. This applies to solar PV, batteries (including standalone), heat pumps, insulation, and a few other technologies. The discount is applied at point of sale — no claim required.

Eligibility

  • Installation must be in a residential property in the UK
  • Must be one of the qualifying energy-saving technologies
  • Both the materials and the labour for installation are zero-rated

What we handle

Applied automatically on our quote. You see the saving on the invoice.

Commercial & community

For businesses, charities, community groups and the public sector.

CARES (Community and Renewable Energy Scheme)

Project-dependent

Grant + development loan · Community

Capital grants and development loans from Scottish Government for community-led renewable energy projects. Administered by Local Energy Scotland on behalf of Scottish Government. Strong fit for charities, community groups, halls, churches and other faith buildings.

Eligibility

  • Project must be community-led with a defined community benefit
  • Constituted community organisations (charities, SCIOs, community trusts, etc.)
  • Project must be in Scotland
  • Various funds within CARES cover scoping, development, and capital phases

What we handle

We draft the technical sections of the funding application, provide system specifications, energy modelling, expected savings, and supporting documentation.

SME Loan + Cashback

Loan: up to £100,000; Cashback grant: up to £30,000

Interest-free loan + grant · SMEs

Scottish Government's energy efficiency loan + cashback scheme for small and medium businesses. The interest-free loan covers the install; the cashback grant (an outright contribution, not a loan) covers up to a third or so depending on the project type.

Eligibility

  • Scottish SMEs (under 250 employees, turnover under €50m / balance sheet under €43m)
  • Project must be in Scotland
  • Eligible technologies: low-carbon heat, on-site generation, battery storage, lighting, fabric
  • Cashback is paid after install is completed and verified

What we handle

We provide the quote, technical specification, expected savings calculation, and any supporting documentation Business Energy Scotland needs.

Business Energy Scotland

Free

Advice + audit + signposting · SMEs · community

Free advisory service from Energy Saving Trust on behalf of Scottish Government. Independent energy audits, business case support, and a route through to whichever funding scheme actually fits. Usually the right place to start before committing to a specific direction — particularly if you're weighing multiple options.

Eligibility

  • Any Scottish business or third-sector organisation
  • No minimum or maximum project size

What we handle

We're happy to work with BES advisers and provide quotes/technical data into their audits. We often suggest customers start here.

Public Sector Energy Efficiency Loans

Project-dependent

Interest-free loan · Public sector

Interest-free loans for public sector organisations undertaking decarbonisation work. Covers councils, schools, NHS sites, and other public bodies. Used for fabric upgrades, low-carbon heat, on-site generation and storage.

Eligibility

  • Scottish public-sector body (or a partner organisation delivering on their behalf)
  • Project must demonstrate carbon savings
  • Various loan terms depending on project type

What we handle

We work alongside in-house estates teams and existing framework contractors. We integrate into CDM and procurement frameworks as needed.

Worked examples

What this actually looks like.

Three illustrative examples to give a sense of how schemes stack. Figures are ranges — your actual numbers depend on your specific situation and we'll always do a free survey before quoting.

Highland family upgrading from oil to a heat pump

A typical Highland four-bedroom property currently on oil might face an install cost of £14,000–£18,000 for an air source heat pump system. With BUS deducted at point of sale (£7,500) and a Home Energy Scotland interest-free loan covering the balance, the homeowner faces zero upfront cost and monthly loan repayments that are typically lower than the displaced oil spend. Numbers are illustrative — your actual figures depend on heat loss, system size and any required radiator upgrades.

Rural community hall going solar

A community hall installing 12 kWp of solar PV might see a project cost in the £18,000–£24,000 range. Via CARES, a meaningful portion of that can be grant-funded outright, with the balance covered by a development loan repaid from the savings on electricity bills. We've drafted the technical sections of similar CARES applications for clients across the Highlands.

Small Highland SME installing battery storage

A small business installing 20 kWh of battery storage to pair with existing solar might invest £15,000–£20,000. Via the SME Loan + Cashback scheme, a portion is paid as a cashback grant (typically up to £30,000 across qualifying upgrades) and the balance funded by interest-free loan. Payback through smart-tariff arbitrage and self-consumption is typically 5–8 years.

Frequently asked

Funding questions, answered honestly.

Do I have to apply for these myself?
No. For BUS, we handle the whole application — you sign one document. For Home Energy Scotland loans we refer you to an HES adviser and provide all the technical paperwork. For commercial schemes (CARES, SME Loan + Cashback) we draft the technical sections of the application; you handle the organisational sections. Public sector loans usually involve your existing estates and procurement teams.
What if I'm not eligible for the main grant?
There are usually adjacent routes worth checking. Home Energy Scotland loans cover broader cases than BUS does. Cashback grants are separate from interest-free loans. Some schemes have multiple funds within them. The starting point is a free survey — we will tell you honestly which routes apply.
How long do applications take?
BUS: handled in days during the install, no waiting. Home Energy Scotland loan: typically 2–6 weeks from application to drawdown. CARES, SME Loan + Cashback: typically 6–16 weeks for a full application cycle. Public sector loans: variable depending on the body and project size.
Are these schemes likely to change?
Yes — they evolve regularly. BUS rates have increased over the lifetime of the scheme. SEG tariffs change with the market. Zero-VAT is currently set to expire in April 2027 (likely to be reviewed). Scottish Government schemes are reviewed in line with the parliamentary funding cycle. We update this page when the rules change; check back or get in touch for the current detail.

Next step

Request a free install survey.

Our in-house team will visit your property, take the measurements that matter, and follow up with a fixed-price quote. No call-out fee, no obligation.