Loans offered on a commercial basis for both renewable and low carbon, low emission technologies in Scotland, for heating distributed through a network of pipes to provide space and water heating in homes or offices.
Applicants may apply for low interest, unsecured loans worth up to £500,000 which may be repaid over either a 10 year period or a 15 year period. Loan terms for larger projects that exceed £500,000 may be considered on a case by case basis.
There is a typical interest rate 3.5% for low risk projects, depending on credit status.
The District Heating Loan Scheme is being delivered by the Energy Saving Trust in Scotland, with funding from the Scottish Government. The Energy Saving Trust in Scotland provides free, impartial advice on how to reduce carbon dioxide (CO2) emissions and save money. The Trust can also help businesses and other organisations to access funding to make buildings warmer and to help them generate their own energy.
Recent figures show that renewable heating uptake has doubled in recent years. 2.8 % of heat demand in Scotland was met by renewables in 2010. This is double the 2009 figure of 1.4% and now three times the UK rate. The figures show Scotland is on track to meet its target for 11% of heat to come from renewables by 2020.
Commercial borrowing can often be costly and difficult to obtain. The purpose of this scheme is to help tackle both financial and financial barriers to district heating projects.
Individuals and householders are not eligible to apply to this programme.
The scheme will be open to the following:
- Registered social landlords.
- Local authorities.
- Small and medium-sized enterprises (SMEs).
- Energy service companies (ESCos).
The applicant must be based and undertaking a project in Scotland.
Match funding requirements are not stipulated.
Through the District Heating Loan Scheme, loans are available on a commercial basis for both renewable and low carbon, low emission technologies in Scotland, for heating distributed through a network of pipes to provide space and water heating in homes or businesses. Both renewable and low carbon/ low emission technologies that focus on heating distributed through a network of pipes to provide space and water heating in homes or offices can funded through this programme.