Loans + Incentives

  • Tariffs for new Air Source Heat Pumps installs will increase to 10.49p per kilowatt hour

  • The reforms will require metering of all new ASHP and GSHP. However, payments will continue to be paid out on the basis of the deemed heat demand of the property except where the property is required to have metering under existing rules. 

  • Tariff for new Ground Source Heat Pump installs will increase to 19.86p per killowatt hour

  • Heat demand limits will be introduced to limit heat demand support of which any household can claim. These limits are: 20,000kWh for Air Source Heat Pumps 30,000kWh for Ground Source Heat Pumps.

  • This will not disqualify properties with higher heat demands from applying. 

What is the Renewable Heat Incentive (RHI)?

The RHI is a government backed plan introduced in 2014 which offers financial support for the heat generated by renewable sources. It is open for applications and is administered by the energy regulator Ofgem, the scheme looks to reward and support households who are moving to renewable energy to heat their homes. It is run on a tariff system so the amount the owner will be paidrelatess to the total heat load of the property in kilowatt hours, for seven years tax free. 

What are the payment levels under the RHI?

The return income from the Renewable Heat Incentive will be dependant on a number of factors including:

  • What type of renewable technology was installed, Ground source heat pumps, air source heat pumps, solar thermal. 

  • The amount of heat which is likely to be generated by your system over the course of a year. 


There is an assumption made that your system will have a 20 year lifetime, this assumption is factored into the tariff values, so you are effectively paid for 20 years of operation within a seven year period. 

Who is Eligible for the RHI?
  • Private Landlords

  • Registered Social Landlord

  • Self Builders              

Someone who has built or commissioned a house for their own use

  • Owner Occupiers

  • Third Party owners of a heating system

General Checklist for Eligibility
  • You must own or occupy (or both) the property where the system is installed and the renewable technology itself.

  • Your renewable technology must have been first commissioned on or after 15 July 2009

  • Also eligible for RHI payments are second homes, houses which are not occupied full time, these will have to have metering installed.

  • All renewable technologies must provide heat using a liquid medium. 

  • You or a previous owner must have contributed financially to the renewable technology

  • Your renewable technology must be used for a specific use - all biomass and heat pump systems must provide space heating and solar thermal systems must provide heating for Domestic Hot water only.

  • The property must have a Domestic Energy Performance Certificate (EPC) that is less than 24 months old.

  • If your EPC recommends the addition of loft and cavity insulation it must be installed and the EPC renewed prior to applying. (some circumstances will exempt you from this)

  • The heat generating parts of the renewable heating system must not have been used before the first commissioning date (refurbished generating equipment is not eligible)

  • Your application must be within 12 months of the commissioning date of your renewable system found on your MCS Certificate.

  • Renewable technology must be Microgeneration Certification Scheme (MCS) certified or equivalent. 

For Further Information

More information regarding the application process and payment tariffs can be found at ofgem

Information about Non-Domestic RHI can be found here

Home Energy Scotland Renewables Loan Scheme

The Home Energy Scotland Renewables Loan scheme is funded by the Scottish Government, they provide interest free loans of up to £10,000 to owner occupiers in Scotland who want to install a domestic renewable heating system. 

Up to 75% of the total cost of the renewable system can be covered under the scheme up to £10,000. The re payment period you can choose will depend on the type of system being installed. 

Other Requirements

To maximise the carbon dioxide reductions there must be a minimum level of energy efficiency in place.

The chosen system must must be recommended in a Report which you can get advice on from Home Energy Scotland.


Work must not commence on your installation before you receive a written offer of a loan. 


Application forms can only be sent from Home Energy Scotland and must be contacted directly by the owner occupier.  

If you are interested in applying for this loan please contact Home Energy Scotland on 0808 808 2282

More information can be found at Home Energy Scotland Renewable Loan