Is Home Energy Scotland better than BUS?

For most Scottish homeowners, yes — significantly. HES offers £7,500 cashback (same as BUS) plus an interest-free loan of up to £38,500, which can be used to cover the rest of the install plus related insulation work. BUS does not have a loan element.

Who administers Home Energy Scotland?

The Energy Saving Trust delivers HES on behalf of the Scottish Government. It's the consumer-facing front end; the actual grant and loan payments are managed by HES with funding from the Scottish Government and partner lenders.

Do I have to pay back the £38,500 loan?

Yes — but it's interest-free. Repayments are typically over 12 years for renewables. You only borrow what you need; the loan is sized to your project. Loan availability is subject to credit check.

How does HES handle insulation upgrades?

Generously. HES can fund insulation under the same loan-and-cashback structure, separately from heat pump funding. Many Scottish homeowners do insulation first, heat pump second, on a combined HES package.

Home Energy Scotland Heat Pump Grants 2025: £7,500 + £38,500 Loan

Scotland sits outside the Boiler Upgrade Scheme entirely. Instead, Scottish homeowners apply through Home Energy Scotland (HES), run by the Energy Saving Trust for the Scottish Government. The HES offer is, for most homeowners, more generous than BUS — a £7,500 cashback grant plus an interest-free loan of up to £38,500.

What HES offers

Cashback grant (heat pump)	£7,500
Maximum interest-free loan	£38,500 (combined renewables + energy efficiency)
Geography	Scotland only
Administered by	Energy Saving Trust (Scottish Government-funded)
Loan term	Up to 12 years for renewables
Application route	Homeowner applies; installer must be MCS

How it compares to BUS

For a typical £14,000 heat pump install in a 3-bed Scottish home:

Element	BUS (England/Wales)	HES (Scotland)
Heat pump grant	£7,500	£7,500 cashback
Remaining cost	£6,500 out of pocket	£6,500 — but as interest-free loan
Insulation top-up funding	Not included (ECO4 may apply)	Can be added to same loan
Net cost on day one	£6,500	£0

HES turns a £6,500 lump sum into a 12-year, interest-free monthly payment (~£45/month). For most homeowners, that's a meaningfully easier financial path — and the monthly running-cost savings can offset the loan payment.

Eligibility

The Scottish criteria are broadly similar to BUS but with some Scotland-specific nuances:

Property is in Scotland
You're an owner-occupier (private landlords have a separate route)
Your property has an EPC, but the rating threshold is less rigid than BUS
The work is carried out by an MCS-certified installer
The property hasn't received the same grant for the same measure before

Loan approval is subject to credit check via the partner lender. The grant element doesn't require credit approval.

How to apply

Free advice call. Phone HES on 0808 808 2282 or use their online form. They walk through your property and circumstances.
Free home assessment if your situation looks promising.
Application submitted with installer quote and supporting documents.
Decision typically within 4–8 weeks for combined loan + cashback packages.
Installation proceeds. Grant cashback paid after commissioning; loan disbursed as needed.

Unlike BUS — where the installer drives the application — HES is owner-driven. You'll deal directly with HES advisors, and you'll need to spend a little more time on the paperwork.

What HES can fund (beyond heat pumps)

Solar PV and battery storage
Loft, cavity, solid wall insulation
Window upgrades
Smart heating controls
Hot water cylinders and storage
EV chargers (in some packages)

The £38,500 loan ceiling is shared across measures, so a homeowner doing heat pump + insulation + solar can use the loan across all three.

Limits and conditions

Cashback grant is paid after commissioning, not before — homeowner needs to fund the gap or use the loan
Loan is interest-free for the agreed term; missing payments incurs late fees and credit-file impact
Properties in the Western Isles, Orkney, Shetland and Highlands sometimes have enhanced offers
Council-tax-banded property thresholds apply for some HES packages

HES vs Warmer Homes Scotland

For low-income Scottish households, Warmer Homes Scotland is a separate scheme that provides free improvements (including heat pumps) — similar role to ECO4 in England/Wales. Eligibility is means-tested:

Long-term means-tested benefit recipients
Low-income pensioners
Low-income households with children under 16

Households who qualify for Warmer Homes typically get the whole install free, so HES loans aren't needed.

The bottom line

Scottish homeowners are objectively better served by HES than English/Welsh equivalents. The £7,500 cashback matches BUS, and the £38,500 interest-free loan removes the upfront cost barrier entirely. If you live in Scotland, talk to HES before doing anything else.

Phone: 0808 808 2282. Website: homeenergyscotland.org.