Aira has now called for urgent reforms to the Home Energy Scotland Grant and Loan application process, saying current hurdles are stalling the transition to decarbonised heating.
Despite a £7,500 government grant and a further £7,500 loan being available to households who make the switch to a heat pump, the complicated application process is significantly holding back uptake, Aira’s findings show.
It claims many homeowners are being put off from applying due to the lengthy and complex process, including an online form equivalent to 38 pages long. Since May 2024, only 35% of Aira customers have had applications approved and on average, people are taking three months to navigate the complex process.
The scheme currently awards just 14 grants per day, according to the Scottish government’s response to the Freedom of Information request made by Aira in August 2024. Aira says this raises concerns about how realistic the Scottish Government’s target of 200,000 heat pumps annually by 2030 – equivalent to over 750 installations per day – truly is.
Aira is now calling for more information on the Home Energy Scotland scheme’s performance to be made public and is urging the government to take three main courses of action:
- Conduct an independent audit to identify bottlenecks in the application process and establish clear expectations for consumers and businesses regarding the full grant process timeline
- Publish details of how long the average customer journey takes from the initial submission of the application through to the grant being awarded
- Publish monthly reports detailing the number of applications received and awarded through the HES Grant and Loan Scheme
‘Scheme not fit for purpose in current form’
Nicola Mahmood, Aira’s Head of Scotland, said: “These complicated processes and prolonged waits are both frustrating for people and businesses who are trying to grow the green workforce in Scotland.
“Aira’s mission is to make heat pumps an affordable and accessible solution for all, and the available grants play a key role in this, but the HES scheme is preventing people from taking advantage of electrifying their heating.
“These issues highlight a critical gap between the scale of Scotland’s net zero ambitions and the capacity of the current grant and loan scheme. Simply put, the scheme is not fit for purpose in its current form and we’re not alone in calling for reform.”
Essential that HES works for heat pump installers
Robin Parker, Nesta Scotland’s Sustainability Lead, added: “Getting a heat pump as part of a home heating upgrade should be as simple and straightforward as possible and the Scottish Government needs to keep working at making the process streamlined and supportive for homeowners.
“It is also essential that HES works for heat pump installers – they are on the front line of the clean energy transition and are leading the way on the path to net zero, so they need to have enough confidence in the scheme to promote it to their customers.”
The Plumbing and Heating Federation has also raised concerns about the Home Energy Scotland Grant and Loan Scheme, and the Landlord Loan Scheme, including the financial strain on installers. It says many must absorb substantial upfront costs which lead to cash flow pressures and threaten business sustainability.
Image credit: Nicola Mahmood, Aira’s Head of Scotland. Aira.
