The Scottish Government is consulting on whether to expand the Energy Efficiency Loan Pilot, which has offered energy efficient and zero emission heating solutions to eligible homeowners, as part of its draft Heat in Buildings Strategy.
Scotland’s long-term climate change targets will require the near complete decarbonisation of our energy system by 2045, with renewable energy meeting a very significant share of our needs.
Emissions from homes and non-domestic buildings will have to fall by 68% by 2030 as compared to 2020.
The Scottish Government is now seeking views on whether to continue a programme for homeowners to borrow up to £40,000 to improve energy efficiency.
The Equity Loan Pilot allows homeowners to borrow up to £40,000 against the value of their home for energy efficiency measures, heat loss reduction and heat source decarbonisation, at a rate of 2.5% APR or the rate of the Scottish Government’s agreed equity share of the property’s sales price, whichever is lesser.
The Scottish government is considering whether to expand the scheme to the whole of Scotland, as well as whether to adopt the latest retrofit standards to ensure consumers receive high-quality work.
It also seeks views on how the scheme could better combat fuel poverty, minimise delays in the application process for mixed tenure blocks, and provide application support advice, especially for vulnerable people.
Launched in 2017 and running in Perth & Kinross, Stirling, Dundee, Glasgow, Inverclyde, Renfrewshire, Argyll and Bute and the Western Isles, the Equity Loan Pilot is managed by the Energy Saving Trust.
Nearly £2 million in loans have been deployed since 2017 and feedback for the scheme has been largely positive. The pilot scheme is currently available to houses in Council Tax A to C where the owner receives qualifying benefits.
This consultation will be open until 8 October 2021.
The full consultation is available on the Scottish government website.
