‘Bureaucratic’ heat pump grant process ‘slowing down Scotland’s green transition’

Despite a £7,500 government grant and a further £7,500 loan being available to households who make the switch to a heat pump, Aira said its findings show the complicated application process is significantly holding back uptake. Many homeowners are being put off from applying due to the lengthy and complex process, including an online form equivalent to 38 pages long, the firm said. Since May 2024, only 35% of Aira customers have had applications approved, and on average, people have been 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, raising 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 after the Scottish Government declined to share the average wait time against their 10-day commitment in the Freedom of Information request.

The company 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.

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.”

Robin Parker, Nesta Scotland’s sustainability lead, said: “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.

“The Home Energy Scotland grant and loan scheme and the first-point-of-call independent advice service HES provides are critical to decarbonising the way we heat homes in Scotland, so it is really important that the service is easy for people to access and navigate. 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.”

Scottish Green MSP Mark Ruskell added: “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 turnarounds 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.”