Exclusive:Heat pump funding scheme in Scotland 'not fit for purpose' due to 'frustrating' 3-month process

Aira said people are being put off from applying due to a lengthy and complicated process, which it claimed was taking customers an average of three months to navigate.

Green MSP Mark Ruskell said he had “serious concerns” about the scheme, which he called “a barrier rather than a boost to the home energy transition”.

Homeowners can apply for grant funding of up to £7,500 to make the switch to a clean heating system such as heat pumps, with an additional £7,500 available as an optional interest-free loan. An uplift of £1,500 is available for rural and island homes.

However, Aira, a Swedish company that opened a hub in Stirling last year, said just 35 per cent of its customers have had applications approved since May.

A Freedom of Information request by the firm found 6,322 funding agreements for heat pumps were made under the Home Energy Scotland (HES) scheme from the financial year 2022/23 until August 21 last year.

The Scottish Government previously said at least 124,000 renewable heating systems would need to be installed between 2021 and 2026 to meet emissions targets.

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."

Mr Ruskell said, “I have so many constituents who are tearing their hair out because of the bureaucratic, slow and cumbersome HES grant and loan scheme. It is unfit for purpose and is slowing down what should be a rapid expansion in the market for heat pumps and other clean technologies.

“I have serious concerns about many aspects of the HES scheme from a painfully complicated advice and application process, to the often slow payment turn-arounds for customers and installers. HES is currently a barrier rather than a boost to the home energy transition.”

A Scottish Government spokesman said: “The Home Energy Scotland Grant and Loan Scheme is a significant driver of heat pump installations in Scotland, with more than 2,500 heat pumps funded in 2024.

“All applicants to the scheme benefit from free, impartial and tailored advice from Home Energy Scotland.

“Last year the scheme launched a new online application and claim system, which has helped to improve the processing of applications and payments. Work is ongoing to make further improvements in line with applicant and installer feedback.

“Additionally, the scheme now provides up to 60 per cent of the agreed funding amount for clean heating and renewable measures ahead of installation, to cover the cost of materials and address cashflow issues.”