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Report 8 July 2024

Policy briefing: the use of loans to encourage action to reduce emissions in homes and businesses

Loans, including zero interest unsecured loans, have been an integral part of the support provided by the Scottish Government to reduce emissions in homes and businesses for around 15 years.

The first loans for home energy efficiency were offered under the Scottish Government’s Energy Saving Scotland Home Loan Pilot (Oct 2009-June 2010) and for small businesses under the Scottish Government’s Energy Saving Scotland Small Business Loans scheme (from 2008), the latter was also available for private sector landlords to use.

Between 2017 and 2022 the Scottish Government also piloted the use of equity loans to fund energy efficiency improvements and repairs through its Home Energy Efficiency Programme Equity Loan Scheme.

This briefing summarises the loan schemes currently available in Scotland for owner occupiers, private landlords and small and medium sized businesses (SMEs). These schemes are all funded by the Scottish Government and managed by Energy Saving Trust and are:

  • Home Energy Scotland Grant and Loan Scheme
  • Private Rented Sector Landlord Loans
  • SME Loans

Last updated: 8 July 2024