WIREDGOV

Interest free loans are to be offered to householders to help them cut their fuel bills and reduce emissions.

A sum of £2 million is available this year for a pilot loans scheme to help people improve insulation, replace inefficient boilers or install small scale renewables.

Watch the video

The news comes as the Scottish Government publishes 'A Consultation on the Energy Efficiency Action Plan for Scotland', a package of existing support and ideas on how energy could be saved to cut emissions and boost the economy.

Cabinet Secretary for Finance and Sustainable Growth John Swinney said:

"Energy efficiency is a key part of our economic recovery programme and our climate change ambitions.

"A waste of energy is a waste of money and with high fuel prices and the need to cut emissions, we must all take steps to cut energy use - in our homes, in the transport we use, in businesses and across the public sector.

"Improving household energy efficiency to meet our 2020 Climate Change Act targets could cost an average of £7,000 per home over that period. So the new scheme I am announcing today will provide practical measures that can make the quickest impacts - interest free loans to upgrade insulation, replace inefficient boilers or install double glazing or small scale renewables. This comes on top of a range of existing Government schemes that are helping thousands of people cut their bills and transform the way they use energy.

"Our consultation on the Energy Efficiency Action Plan takes a broad view of how energy is used and how its use could be reduced or improved, including potential regulation.

"In industry, saving energy can increase competiveness and profitability. The transport sector, which is a major contributor to greenhouse gas emissions, can improve fuel efficiency and embrace new technologies. The whole of the public sector must become a visible leader in energy efficiency. And tens of thousands of Scottish jobs can be created and supported through the manufacturing and installation of energy efficiency measures.

"This consultation is wide ranging and we need everyone to consider the action they can take to support changes. In the meantime, anyone can contact their local Energy Saving Scotland Advice Centre to get independent advice on how to stop wasting energy."

The new Energy Saving Scotland Home Loans will provide interest free loans between £500 - £10,000 to enable householders to finance measures in existing homes including loft and wall insulation, small scale renewables and many others. For further details, contact the Energy Saving Scotland advice centres on 0800 512 012.

The consultation on the Energy Efficiency Action Plan for Scotland highlights actions that need to be taken to meet Scotland's climate change and economic objectives.

Energy consumption has remained fairly steady in recent years. In 2006 in Scotland:

• 47 per cent of energy was used in the industrial and commercial sectors
• 29 per cent of energy was used in homes
• 24 per cent of energy was used for transport

A 42 per cent cut in emissions from homes by 2020 would require substantial upgrades to properties - for instance:

• 1.55 million homes would need loft insulation
• 625,000 homes would need cavity wall insulation
• 500,000 homes would need double glazing

These, and other measures required, are estimated to cost £16 billion - or around £7,000 per home - over the period to 2020.

Other measures proposed in the consultation include:

• Action to improve data and the formulation and monitoring of annual and long-term targets
• Changing attitudes and influencing voluntary behaviour
• Potential further regulation in the housing sector - covering what standards could be set and what support for low income or vulnerable households could be available
• Encouraging the use of waste industrial heat
• Action in transport to encourage people out of their cars and the development and deployment of new technologies
• Action to promote investment and opportunities in the supply-chains

A range of Scottish Government programmes already contribute to improving the energy performance of our housing stock. These include:

• Energy Saving Scotland Advice Centres, providing independent advice on energy efficiency in housing, microgeneration, personal transport and fuel poverty
• Energy Assistance Package, a co-ordinated programme of support targeted at the fuel poor which includes energy efficiency advice, benefit and tariff checks, cavity wall and loft insulation
• Energy Saving Scotland Home Renewables provides grants for householders to install their own renewable energy equipment. The equivalent scheme for community projects is the Community and Renewable Energy Scheme (CARES)
• Home Insulation Scheme, an area-based insulation scheme
• Energy Efficiency Design Awards, which support novel design, materials, methods or approaches to improve the energy efficiency of hard-to-treat housing

The Scottish Government funds the Carbon Trust to provide energy efficiency advice to industry and the public sector. It has established 'Leading by Example' to raise the environmental performance of the public sector.

Related Information