A Scottish Government heat pump scheme is being blighted by ‘bureaucratic’ form-filling and low levels of uptake, according to new figures released today.
Ministers have come under pressure following the publication of new data showing that there are just 14 grants being awarded per day to households under the Home Energy Scotland grant and loan scheme.
That amounts to around 5,000 per year – in line with an Audit Scotland report last year – which is well short of the current target of 25,000 per annum, and gets nowhere close to an anticipated 200,000 annually later in the decade.
The figures were unearthed by a Swedish heat pump supplier Aira, which opened its first Scottish hub in Stirling last year – partly to be ready to work on applications for the national grant scheme.
Scottish Greens MSP Mark 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 turnarounds for customers and installers. HES is currently a barrier rather than a boost to the home energy 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, the ‘complicated application process’ is significantly holding back uptake, Aira said in a statement.
In a Freedom of Information request to the Scottish Government, the company uncovered evidence that from financial year 2022-23 to 21 August 2024, there have been 6,322 legally committed funding agreements made to applicants for air source heat pumps.
Aira also asked for information on the waiting times for heat pump installation, but the Scottish Government responded that it does not hold that data. The firm, however, claimed that homeowners are being put off from applying due to the ‘lengthy and complex process, including an online form equivalent to 38 pages long’. Since May 2024, only 35% of Aira customers have had applications approved and on average, people are taking three months to navigate the complex process, it said.
The company is now urging the Scottish Government to take three main courses of action:
- Publish monthly reports detailing the number of applications received and awarded through the HES Grant and Loan Scheme.
- 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.
Nicola Mahmood, head of Aira 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.”
A Scottish Government spokesperson 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.”
