Scotland's Economy

Renewable heat scheme for Scotland’s SMEs

October 28, 2020 by No Comments | Category Energy, Uncategorized

A £4 million cashback grant scheme to encourage small and medium-sized businesses (SMEs) to improve energy efficiency and install renewable heating has been launched by the Scottish Government.

SMEs will be able to apply for a 75% cashback grant of up to £10,000 towards the cost of a renewable heating system and a further 30% cashback grant up to £10,000 for energy efficiency measures.

Scotland’s Energy Minister, Paul Wheelhouse, said:

“We recognise that SMEs often do not have the resources available to invest in energy efficiency and renewable heating measures, an issue that has been compounded by additional financial pressures caused by the coronavirus (COVID-19) pandemic.

“We have already supported thousands of businesses to make the most of renewable heat and energy efficiency measures through financial support and access free advice.

“Through this new cashback scheme SMEs could receive up to £20,000 of Scottish Government support, helping businesses invest in their future by improving energy efficiency, reducing energy usage and ultimately increasing their competitiveness.

“This investment is part of our ongoing action to reduce emissions from heating our buildings and to support a green economic recovery from COVID-19.”


Through the new scheme, £3 million will be allocated to offer SMEs a 75% cashback grant up to £10,000 for renewable heat measures and £1 million will be allocated to offer SMEs a 30% cashback grant for energy efficiency measures up to £10,000. Both incentives operate on a first-come-first-served basis until the end of financial year 2020/21.

More information on the SME loan, including how to apply, is available on the Zero Waste Scotland website.

Since its launch in 2008, the SME Loan scheme has paid over £29.3 million in loans, funding more than 1,100 projects with an estimated total cost saving to businesses of over £55,265,000. This includes £4 million made available to SMEs at the start of the financial year in interest free loans for the installation of energy efficiency measures and renewable energy technologies.

Renewable Heat Report 2020

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