Interest free loans will help people cut their fuel bills and reduce emissions, John Swinney said today.

Two million pounds is available this year for a pilot loans scheme to improve insulation, replace inefficient boilers or install small scale renewables.

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: "Improving household energy efficiency to meet our 2020 Climate Change Act targets could cost an average of 7,000 pounds 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."

Mr Swinney said the governments 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.

He added: "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 or visit: www.energysavingtrust.org.uk/homeloans

(GK/BMcC)