Heat Pump Sector Deal Expert Advisory Group: Scottish Government response

Recommendation 12

Support for increased heat pump deployment should be accompanied by support for fabric energy efficiency measures.

Scottish Government Response

Energy efficiency remains at the core of our heat in buildings policies and programmes, and a fabric first approach continues to be the mainstay of all our fuel poverty interventions. Our established fabric first approach is critical to the transition, reducing demand for energy, making our homes and buildings warmer and easier to heat, and preparing them for zero emissions technologies.

Our Home Energy Scotland Loan and Cashback scheme provides financial support for energy efficient measures such as solid wall insulation, cavity wall, flat roof and room-in-roof etc. The maximum funding for energy efficiency measures is £15,000 (including a maximum cashback amount of £6,000). As outlined earlier in this document, we have committed to replace the cashback element of the Home Energy Scotland funding offer with a standalone grant. The standalone grant will retain the focus on energy efficiency measures and zero emissions heating.

Support is also available to small and medium sized Scotland based businesses through he SME Loan and Cashback scheme. This scheme provides interest free loans from £1,000 up to £100,000 for the installation of energy efficiency measures and renewable energy technologies and is managed and administered on behalf of the Scottish Government by the Energy Saving Trust (EST). SMEs can apply for a 75% cashback grant of up to £10,000 towards the costs of a renewables heating system and a further 75% cashback grant up to £20,000 for energy efficiency measures.

We recognise that to achieve the scale required to deliver upon the ambitions set in our heat in buildings strategy, further support for Green Heat works may be required. In our Supply Chains Delivery Plan we have committed to exploring the potential to implement a complementary approach to subsidising Green Heat works via a new supplier led funding scheme; delivering support directly to suppliers to encourage them to develop compelling propositions for Green Heat works which they can take directly to consumers.