A new £500,000 interest free loan scheme will help householders install green energy generating equipment - and get paid for doing so.

Loans will be available for a range of renewable heat and electricity technologies - for instance heat pumps, solar panels, micro-wind turbines or biomass boilers.

People installing electricity technologies will be eligible for payments for feeding electricity into the national grid. The money will also help domestic customers install renewable heat equipment who have been excluded from support by the UK Government's Renewable Heat Incentive until next year.

The loans will be time-limited and operated on a first come first served basis. The scheme will be open on April 1 and loans will be capped at £2,000. Interested people should call the Energy Saving Scotland Advice Network on 0800 512 012 or see the Energy Trust website.


Energy Minister Jim Mather said: "Scotland is going greener and the wide take up of small scale technologies will be vital to become a truly low carbon economy. There has never been a better time to save energy and go green.

"Householders choosing to install electricity devices will not only have their own green energy supply, they will be able to receive payment for supplying electricity to the national grid.

"Low cost, low carbon heating technologies, especially attractive in areas off the gas grid, will cut emissions and support jobs in the manufacturing and installation industry. Yet households will unfortunately not be eligible for the UK Government's incentive mechanisms for renewable heat until 2012, so our new loans will help householders fill a gap left behind by this short sighted move."

The money comes from underspends in energy budget in 2010 -11, as many applicants previously offered Scottish Government renewables support opted not to take up a grant as a result of delays to the UK Government's Renewable Heat Incentive.

The Scottish Government has also reduced the planning burden for people wishing to install certain green energy technologies. Many householders can erect equipment without the need, in some circumstances, for planning permission.

(GK)