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Concerns raised over financial strain on Scottish heat pump installers

Concerns have been raised about the financial burden placed on installers in Scotland by the structure of the country’s funding framework for heat pumps. 

Photorealistic 3d render of a fictitious air source heat pump mounted to a concrete base with vibration dampers on the outside of a house. Rose bush, ivy and strelitzia in the garden.

The Plumbing and Heating Federation has highlighted a number of issues which it says are stalling Scotland’s decarbonisation progress, including funding delays, costs for installers and cost of electricity. 

The trade association, which represents more than 750 business members, raised the concerns following newly released Freedom of Information figures. Data from the Home Energy Scotland (HES) Grant and Loan Scheme and the Private Rented Sector (PRS) Landlord Loan Scheme reveal that fewer than 9,000 heat pumps have been installed since 2019. 

Fiona Hodgson, Chief Executive of the Plumbing and Heating Federation, said: “While it is encouraging to see growing numbers of homeowners and landlords making the switch to clean heating solutions, the Scottish Government’s ambition of over one million homes converted to low or zero-emission heat by 2030 is simply not achievable under current conditions. The data highlights the urgent need for clearer policy direction, greater financial certainty and stronger industry support.” 

Financial strain on installers 

In terms of the impact on installers, the federation has raised serious concerns over the Home Energy Scotland scheme’s payment structure, which places a heavy financial burden on installers. Many installers must absorb substantial upfront costs, leading to cash-flow pressures and administrative challenges that threaten business sustainability. 

“Installers are at the heart of Scotland’s green heating transition, but they need a stable, transparent funding framework to remain viable. Addressing cash-flow pressures and streamlining payments is critical to scaling up heat pump adoption at the pace required,” Fiona Hodgson said.   

“Today’s CBI report highlights the significant economic benefits of investing in the net zero economy. In Scotland alone, the sector contributes £9.1 billion, 4.9% of the country’s total GV, and supports nearly one in 25 Scottish workers. However, the financial strain of this transition cannot fall solely on already stretched businesses, especially as they face mounting pressures, including the upcoming National Insurance hike.” 

The federation also called for the ‘spark gap’ to be closed in order to drive consumer uptake and confidence. 

Image credit: iStock/aprott