Free Heat pumps are now available in Scotland

Government grants for free heat pumps are now available for properties in rural Scotland through the updated Energy Company Obligation (ECO) scheme.

Heat pumps in Scotland

Free Heat pumps grants in Scotland 2023

Under the revised Energy Company Obligation (ECO) scheme, government grants for complimentary heat pumps are now accessible for properties in rural Scotland.

Heat pumps represent a modern and energy-efficient heating system that harnesses heat from the external air or ground to supply hot water for both central heating and taps within your home.

Broadly categorized into ground source, drawing heat from the ground, and air source, collecting heat from the surrounding air and compressing it for home heating, these heat pumps are eligible for government grants exclusively for air source variants in Scotland.

More about ECO 4

ECO4 Scheme Eligibility Check​

Why Choose Internal Solid Wall insulation?

The revitalized Energy Company Obligation Scheme (ECO4) now prioritizes comprehensive energy efficiency enhancement initiatives for residences in rural areas of Scotland where households experience fuel poverty.

Numerous homes still rely on fossil fuel heating systems, such as oil and LPG boilers. The updated grant scheme aims to offer complimentary upgrades for properties using these heating systems. Eligibility for a free heat pump requires that someone in the residence is receiving benefits or tax credits, and the property must meet the prescribed minimum insulation standards for walls and roofs.

For those residing in stone or brick-built houses with older heating systems, insulation of walls is a prerequisite before installing a heat pump. The positive aspect is that this insulation, along with the air source heat pump, will be installed at no cost as part of the grant scheme.

About Heat Pump Grants

Until spring 2022, the primary focus of the ECO grant scheme was upgrading the insulation of properties across Scotland, benefitting numerous homes with free cavity wall insulation and loft insulation over the past decade.

However, many rural properties, particularly those constructed with stone, were ineligible for energy grants. Cavity wall insulation couldn’t be installed in such properties, and the eligibility criteria for stone-built properties often limited them to measures like solid wall insulation if they were electrically heated.

New Eligibility Criteria for Heating and Insulation Grants

From July 2022 to March 2026, the ECO will shift its focus to the installation of free air source heat pumps in properties currently heated by oil or LPG central heating. Limited funding will also be available for first-time central heating systems in electric and solid fuel-heated properties. Existing heating systems in these properties will be upgraded to air-to-water systems at no cost. Some funding is allocated for properties with non-condensing gas boilers over 20 years old.

Qualification requires meeting the minimum insulation requirements recommended for energy efficiency. Solid stone or brick constructions are eligible for free solid wall insulation (internal). Some cavity-built constructions may also qualify, as mentioned earlier. These must be insulated before the installation of a new heat pump. While individual energy efficiency measures like loft insulation, wall insulation, and underfloor insulation will no longer be installed as standalone measures, they remain viable components of complete heating and insulation projects.

Free for Families on Benefits or Tax Credits

Certain disability benefits eligible under the previous ECO3 scheme have been replaced with new means-tested benefits, based on a government consultation concluding that the new criteria would encompass more families in fuel poverty. The ECO4 eligible benefits include:

  • Working Tax Credits
  • Child Tax Credits
  • Child Benefit
  • Income Support
  • Universal Credit
  • Housing Benefit
  • Income-based ESA
  • Income-based JSA
  • Pension Savings Credit
  • Pension Guarantee Credit
  • Warm Homes Discount