Homeowners will be able to apply for 75% cashback up to the value of £7,500 towards the cost of a renewable heating system and a further 40% cashback up to £6,000 for energy efficiency measures.

This is in addition to the £4m renewable heat cashback scheme for SMEs which opened for applications last week.

Energy minister Paul Wheelhouse said: “This new scheme is part of our ongoing work to support people to install renewable heat measures and the improve energy efficiency in homes across Scotland while we also seek to stimulate development of local supply chains.

“The Scottish Government already provides a substantial free advice and support service to Scottish households to support them to make the transition to renewable heat and improve energy efficiency in their homes.

“Through this new cashback incentive homeowners could receive up to £13,500 of Scottish Government support, helping them to improve energy efficiency in their homes, reduce energy usage and save money on their bills.

“This new scheme is part of our action to reduce emissions from heating our buildings and to support a green economic recovery from COVID-19 and I hope suitably qualified businesses are able to also pick up some valuable local work. Our wider package of work to support the recovery includes a £4m renewable heat cashback scheme which opened to SMEs last week.”

The cashback offering for owners of domestic premises is an extension of the Home Energy Scotland loan scheme which offers interest free loans for those wishing to install renewable and energy efficiency measures in their homes.

Through the new offering, £4.5m will be allocated across the new incentive to offer homeowners a 75% cash back up to £7,500 for renewable heat measures and an enhanced 40% cashback for energy efficiency measures up to £6,000. Both incentives operate on a first-come-first-served basis until the end of financial year 2020/21.

Fabrice Leveque, head of policy at WWF Scotland, said: “Transforming the way we heat our homes is a vital component of Scotland’s journey to zero carbon. This funding will help homeowners reduce their energy bills while also cutting damaging emissions. We look forward to the Scottish Government building on this support for energy efficiency and low-carbon heating, which will create jobs and play an important part of a green recovery from the COVID-19 crisis.”

Helen Melone, senior policy manager at Scottish Renewables, added: “Renewable technologies like heat pumps and solar thermal panels provided just 6.5% of Scotland’s non-electrical heat demand in 2019, the latest figures available. This means we are a long way from meeting our target that 11% of heat will be delivered from renewables by 2020, so we are pleased to see The Scottish Government announcing a new £4.5m cashback incentive to help people install renewable and energy efficiency measures in their homes.

“Heat makes up 55% of the energy used in Scotland and decarbonising heating is essential if we are to meet our net-zero targets. We look forward to working with our members and governments in both Edinburgh and Westminster as they accelerate the shift to the low-carbon energy system which we need to tackle climate change.”