We’re proud to share that The Edinburgh Boiler Company is now part of the government’s new Warm Homes Loan Scheme. It means homeowners in Edinburgh and right across Scotland can spread the cost of a heat pump, solar panels or a home battery with a low or zero-interest loan, and still claim a Home Energy Scotland grant on top.
We know the word “scheme” can make eyes glaze over, and between the Warm Homes Plan, Home Energy Scotland and Warmer Homes Scotland, there are now a few warm homes schemes in Scotland with very similar names. So in this guide we explain, in plain English, what’s new, what you can borrow, how it works alongside the Scottish grants, and which option is likely to suit your home.
What Is the Warm Homes Loan Scheme in Scotland?
The Warm Homes Loan Scheme is a UK Government scheme offering low and zero-interest loans to homeowners for clean heating and home energy upgrades. It is part of the wider Warm Homes Plan, and the government confirmed the details on 27 October 2026.
The important bit for us here in Scotland: the loans are available to households across the whole UK, including Scotland. Housing and energy grants are devolved, so many “Warm Homes Plan” headlines only apply in England. This loan scheme is different, and Scottish homeowners can use it.
A few things worth knowing:
- Loans come from a group of approved lenders, and some of them offer 0% interest.
- Some loans can be repaid over up to 30 years, which keeps monthly payments low.
- Lenders still run their normal affordability and credit checks.
- Every installation must be done by an MCS-certified installer, which we are.
What Can You Borrow With a Warm Homes Loan?
The scheme sets a maximum loan for each technology. These are the ones we install:
| What you’re installing | Maximum Warm Homes loan | Can we install it? |
|---|---|---|
| Air source heat pump (air-to-water) | £20,000 | Yes |
| Solar panels | £15,000 | Yes |
| Home battery storage | £15,000 | Yes |
| Air-to-air heat pump (Air Conditioning) | £10,000, once MCS installer certification for air-to-air goes live | Yes, we install these now (loan funding not available yet) |
The scheme also covers ground source heat pumps (up to £35,000), biomass boilers and heat network connections. Gas boilers aren’t covered, but we do offer boiler finance if a new boiler is what you need.
We now install air-to-air heat pumps too. They’re on the scheme’s list, but loans for them only open once MCS certification for air-to-air installers goes live. We’ll update this page as soon as it does, and in the meantime you can ask us about an air-to-air heat pump.
How Much Could You Save With a Warm Homes Loan?
According to the government, a heat pump, solar panels and a battery together could save a typical family up to £550 a year on energy bills. Pairing them with a time-of-use electricity tariff could save around £300 a year on top.
The loan itself saves money too. The government’s own example: a £10,000 loan at 8% over seven years costs about £155 a month on a normal loan, and the scheme could cut up to £285 a year off those repayments.
“[Draft quote for Dougie to approve] We’ve been fitting heat pumps and solar for families across Edinburgh and the Lothians for years, and the number one thing that holds people back is the upfront cost. The Warm Homes Loan Scheme changes that. We’re really proud to be part of it, and we’re looking forward to helping many more Scottish homes get warmer and cheaper to run.”
— Dougie Bell, owner, The Edinburgh Boiler Company
Can You Combine a Warm Homes Loan With a Home Energy Scotland Grant?
Yes, and for most heat pump installs in Scotland that’s the best way to do it. The government confirms that Home Energy Scotland grants can be used alongside a Warm Homes loan.
Here’s the funding available for an air source heat pump. The grant comes first, and the remaining cost can then be covered by a Home Energy Scotland interest-free loan or a Warm Homes loan:
| Funding | Amount | What it is |
|---|---|---|
| Home Energy Scotland grant | Up to £7,500 | Money you don’t pay back |
| Rural and island uplift | Extra £1,500 | For eligible rural, island and off-gas homes |
| Home Energy Scotland loan | Up to £7,500, interest free | Optional, repaid over up to 12 years |
| Warm Homes loan | Up to £20,000, low or zero interest | An alternative way to cover the remaining cost, with longer terms available |
Two things to keep in mind, as they catch people out:
- Apply for your Home Energy Scotland grant before any work starts. Home Energy Scotland can’t fund work retrospectively, so you need its written offer in hand first. We’ll guide you through this.
- Solar panels and batteries work differently. Standard solar panels and home batteries aren’t listed for Home Energy Scotland grant funding. For those, the Warm Homes loan is now the main way to spread the cost.
Our full Home Energy Scotland grant and loan guide goes into more detail.
Using the Warm Homes Loan With Other Grants in Scotland
The Warm Homes loan can sit alongside other Scottish support, but not every combination is allowed, and the rules differ from scheme to scheme. Here’s where things stand, based on the official guidance:
| Scheme | What it funds | Can it work with a Warm Homes loan? |
|---|---|---|
| Home Energy Scotland grant | Heat pumps (up to £7,500, or £9,000 with the rural uplift), plus insulation | Yes. The UK Government confirms the two can be combined. |
| Home Energy Scotland interest-free loan | The rest of your heat pump or insulation cost | Not confirmed. Treat it as an alternative to a Warm Homes loan for the same cost, and check with your lender. |
| Area Based Schemes (run by your council) | Mainly solid wall and hard-to-treat cavity insulation in targeted areas | Not covered by the loan guidance. Insulation isn’t one of the loan’s technologies, so the two fund different parts of a project. |
| Energy Company Obligation (ECO4) | Insulation and heating for lower-income homes with poor energy ratings | Not confirmed. ECO4 is due to close at the end of December 2026, with little funding left. |
| Warmer Homes Scotland | Mostly or fully funded heating and insulation for eligible households | Check this first, as it may cover most or all of the cost. |
One rule worth knowing: Home Energy Scotland won’t give you a grant for an insulation measure that is already being funded by an Area Based Scheme or ECO. If your council offers you an Area Based Scheme, though, you may be able to cover your contribution with a Home Energy Scotland interest-free loan.
Our advice is to line up your Home Energy Scotland grant, and any council or Warmer Homes Scotland support, first. Then use a Warm Homes loan for what’s left. We’ll talk you through it at your survey, and Home Energy Scotland’s free advisers can confirm exactly what you qualify for.
Warm Homes Scotland vs Warmer Homes Scotland: Which Scheme Is Right for You?
There are now three “warm homes” routes for Scottish homes, and they’re easy to mix up. Here’s a quick way to tell them apart:
| Scheme | Who runs it | What you get | Best for |
|---|---|---|---|
| Warm Homes Loan Scheme | UK Government, through approved lenders | Low or zero-interest loans for heat pumps, solar and batteries | Homeowners who want to spread the cost of an upgrade |
| Home Energy Scotland Grant and Loan | Scottish Government | Up to £7,500 grant + £7,500 interest-free loan for heat pumps, plus insulation funding | Homeowners installing a heat pump or insulation |
| Warmer Homes Scotland | Scottish Government, delivered by Warmworks | Fully or mostly funded heating and insulation upgrades worth £10,000+ | Households struggling with energy bills who meet the benefit or age criteria |
If you think you might qualify for Warmer Homes Scotland, have a look at our Warmer Homes Scotland guide first, as it can cover most or all of the cost. For everyone else, a Home Energy Scotland grant plus a Warm Homes loan is usually the most affordable route to a heat pump.
How to Get a Warm Homes Loan Through The Edinburgh Boiler Company
We keep it simple, and we’re with you from the first chat to switching your new system on:
- Free survey. One of our engineers visits, looks at your home, and talks through what would work best. Book your heat pump survey.
- Design and fixed quote. We design your system to MCS standards and give you a clear, fixed price.
- Grant application. We help you apply to Home Energy Scotland and wait for your written offer.
- Warm Homes loan. [We work with LENDER / you apply to any participating lender, to confirm] to cover the remaining cost.
- Installation. Our MCS-certified team fits your system, usually in [X] days for a heat pump.
- Paperwork and aftercare. You get your MCS certificate, we help you claim your grant, and our aftercare keeps everything running smoothly.
Warm Homes Scotland FAQs
Is the Warm Homes Loan Scheme available in Scotland?
Yes. The government confirms the loans are available to households across the whole UK, including Scotland. Many other parts of the Warm Homes Plan only apply in England, so it’s worth checking which scheme a headline is talking about.
Is the Warm Homes loan interest free?
Some lenders offer 0% loans and others offer low-interest loans. The rate you get depends on the lender and their usual credit checks.
How long can I take to repay a Warm Homes loan?
It depends on the lender and the loan size. Some loans can be repaid over as long as 30 years, which keeps the monthly cost down.
Can I use a Warm Homes loan and a Home Energy Scotland grant together?
Yes. For a heat pump you can claim a Home Energy Scotland grant of up to £7,500 (plus £1,500 for eligible rural homes) and use a Warm Homes loan for the rest. Apply for the grant before any work starts.
Do I need an MCS-certified installer for the Warm Homes Loan Scheme?
Yes. Every installation under the scheme must be carried out by an MCS-certified installer. The Edinburgh Boiler Company is MCS certified, so you’re covered.
Can I use the Warm Homes loan with other grants in Scotland?
Yes for the Home Energy Scotland heat pump grant, which the government confirms can be combined with the loan. For other schemes, such as council Area Based Schemes or ECO4, the official guidance doesn’t say either way, so check with the scheme and your lender first. You also can’t get two grants for the same insulation measure.
Is there a Warm Homes grant in Scotland?
Not under that name. The free upgrades in the UK Government’s Warm Homes Plan mainly apply in England, because home energy support is devolved. In Scotland, grants come through Home Energy Scotland and Warmer Homes Scotland, while the Warm Homes loan is open to Scottish homeowners too.
Can I get a Warm Homes loan for a new gas boiler?
No. The scheme is for clean heating and energy upgrades such as heat pumps, solar and batteries. If you need a new boiler, take a look at our boiler finance options.
Is the Warm Homes Loan Scheme the same as Warmer Homes Scotland?
No. Warmer Homes Scotland is a separate Scottish Government scheme that funds heating and insulation for households struggling with energy bills. The Warm Homes Loan Scheme is open to homeowners more widely and offers loans rather than free upgrades.
Do you install air-to-air heat pumps, and can I get a Warm Homes loan for one?
Yes, we now install air-to-air heat pumps, which heat (and cool) your rooms through wall-mounted indoor units. You can find out more on our air-to-air and air conditioning installation page. The Warm Homes Loan Scheme lists air-to-air heat pumps at up to £10,000, but only once MCS certification for air-to-air installers goes live. MCS says this is in progress but hasn’t given a date. Air-to-air heat pumps also aren’t eligible for Home Energy Scotland funding, so for now they’re paid for privately. We’ll update this page as soon as loans become available.
Warm Homes Loan Installers Across Edinburgh and Scotland
We install heat pumps, solar panels and batteries under the Warm Homes Loan Scheme across Edinburgh and the Lothians, including Musselburgh, Dalkeith, Penicuik, Mayfield, Balerno, Dunbar, Livingston, Bathgate, Broxburn, Linlithgow and South Queensferry. We also cover Falkirk, Stirling, Dunfermline, Kirkcaldy, Perth, Glasgow, Paisley, East Kilbride, Hamilton, Cumbernauld and the Scottish Borders, including Galashiels, Peebles, Kelso and Hawick.
Start Your Warm Homes Upgrade Today
If you’ve been thinking about a heat pump or solar but the upfront cost has held you back, now is a great time to look again. Between the Home Energy Scotland grant and the new Warm Homes loans, upgrading your home is a lot more affordable than it was.
Book your free heat pump survey or get a solar quote, and our team will talk you through exactly what you could get. Not sure where to start? Try our heat pump grant checker.
