Funding for fuel poverty and energy efficiency

Funding of £54.5 million to help tackle fuel poverty and reduce greenhouse gas emissions has been announced by First Minister Nicola Sturgeon.

Speaking at the All Energy conference in Glasgow, the First Minister launched the Route Map to an Energy Efficient Scotland, which outlines action to ensure that by 2040, all homes are improved so they achieve an Energy Performance Certificate (EPC) rating of at least Band C.

Supported by £54.5 million funding, the Route Map confirms that landlords of privately rented homes will be required to achieve an Energy Performance Certificate rating of Band E from April 2020 at change of tenancy, and then Band D from 2022. All private rented properties will need to be EPC Band E by end March 2022 and Band D by end March 2025. This is aimed at ensuring private rented tenants live in homes which are warmer and more affordable to heat.

The funding will also support local authorities to expand their existing energy efficiency and fuel poverty programmes. And it will continue to support building owners to develop local heat and energy efficiency strategies as well as making funding available to social landlords to help them install low carbon heating systems such as air and ground source heat pumps.

The First Minister said:

“The Scottish Government’s energy efficiency programme will help ensure all our buildings are warmer, greener and more energy efficient.

“The major investment in this programme highlights our clear commitment to ensuring that we tackle fuel poverty and reduce greenhouse gas emissions – helping those on low incomes as well as protecting our environment.”

Cllr Elena Whitman, COSLA Community Wellbeing Spokesperson said:

“The publication of the Energy Efficiency Scotland Route Map is welcomed by Scottish Councils. Our buildings need to be comfortable to work and live in, and heating them should be affordable. The route map will address this and is a priority for council leaders.

“Local Government is ready to work in a constructive partnership with the Scottish Government. We’ve a good record of achievement on area based schemes. We want to deliver the ambitious targets and harness the significant local economic benefits that should result.”

Background

View the Energy Efficient Scotland route map and our pages about energy efficiency.

The All Energy Conference is a UK-wide renewable and low carbon innovation event which brings together developers, researchers and buyers with policy makers from across the UK’s renewable energy, low carbon heat, energy efficiency and low carbon transport industries.

The £54.5 million of funding in 2018/19 will be allocated as follows:

• £49 million of funding will be allocated to support Home Energy Efficiency Programmes for Scotland: Area Based Schemes in 2018/19 which provide energy efficiency measures to a large number of Scottish households and help to tackle fuel poverty.
• £5.5 million to support the Energy Efficient Scotland: Transition Programme to help local authorities to expand their existing energy efficiency and fuel poverty programmes to also support building owners who can afford to pay, further help them in developing local heat and energy efficiency strategies and make available funding to social landlords to help them install low carbon heating systems such as air and ground source heat pumps.

The Scottish Government has introduced a cashback incentive to the SME loan scheme, which offers cashback of up to 30% of costs of energy efficiency works (up to £10,000).