The Scottish Public Sector Energy Efficiency Loan Scheme provides zero‑interest loans and flexible financial criteria to help public bodies in Scotland reduce energy use, cut carbon emissions, and progress towards Net Zero targets.
Funding
Applications for the Scottish Public Sector Energy Efficiency Loan Scheme are open and can be submitted all year round subject to funding being made available from the Scottish Government.
All projects are expected to be completed by the end of the financial year (31 March) in which they were awarded.
The Scottish Public Sector Energy Efficiency Loan Scheme
The Scottish Public Sector Energy Efficiency Loan Scheme, part of the wider Scottish Green Public Sector Estate Decarbonisation Scheme, provides zero‑interest loans to help public bodies in Scotland reduce energy use, cut carbon emissions, and progress towards Net Zero targets. Funded by the Scottish Government and delivered by Salix, the scheme has supported projects since 2008, investing over £75 million and generating forecast lifetime savings of more than £202 million.
The scheme offers flexible financial criteria, including payback periods of up to 12 years and a cost threshold of £305 per tonne of carbon dioxide over a project’s lifetime. Public bodies can apply for loans covering up to 75% of eligible project costs, subject to technical review and due diligence, with the option for 100% funding for fully compliant projects. The scheme also supports projects delivered via the Non‑Domestic Energy Efficiency (NDEE) framework, making it suitable for both standalone and retrofit programmes.
Key benefits include:
- Zero‑interest loans and potential for full cost coverage
- Technical and client support throughout project delivery
- Access to peer learning and sector-wide knowledge sharing
- Increased payback flexibility where justified
An additional £2 million has been allocated specifically for solar PV, enabling more organisations to install solar technologies, lower energy bills, and cut emissions across their estates.
Application procedure
Applications are made using Salix’s project compliance tool, with larger projects also requiring a business case. Projects under £100,000 must submit evidence of energy savings, costs, data sheets, and – where relevant – a performance management plan for electricity‑generating technologies. Projects over £100,000 require all of the above plus a cost breakdown, project programme, governance information, and an energy and carbon monitoring plan. Solar and other electricity‑generating projects of any value must include a performance management plan, while metering projects must complete the metering, monitoring, and management technologies table. Each building needs its own application, and all fields must be fully completed for assessment.