The initiative aims to create warmer homes for residents and will be tested in Glasgow, Argyll and Bute and Perthshire.
The scheme will provide equity loans of up to £40,000 for to home owners on low incomes. The funding will go towards making essential repairs to properties before energy efficiency measures, such as solid-wall insulation, can be installed.
In addition, the funding can be used either as a single equity loan or with other existing Scottish Government grants to fund more expensive measures like solid wall insulation or a package of energy efficiency works.
Minister Stewart announced the pilot scheme ahead of the launch of 'Under One Roof', a new website which will provide free advice to private flat owners on their obligations when it comes to property and shared spaces.
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"We know leaking roofs and poor building structures can drive up energy bills and make them more difficult to heat, but for low income households they can often be too costly to repair," he said.
"This £10 million scheme will provide households with loans to carry out essential repair work and install energy efficiency improvements."
The initiative has been widely welcomed by various organisations across the housing sector.
Mary Taylor, Chief Executive of the Scottish Federation of Housing Associations (SFHA), said: "We welcome the announcement of the equity loan scheme. It is extremely important that we invest in the energy efficiency of existing homes to provide affordable warmth and reduce carbon emissions. It is also important that we invest in existing buildings and keep them in a good state of repair."
Lori McElroy, Chair of the Existing Homes Alliance, added: "If energy efficiency and fuel poverty programmes like this can help to raise the vast majority of Scottish homes to an Energy Performance Certificate band C by 2025 we can ensure that cold and draughty homes no longer condemn Scots to fuel poverty."
David Bookbinder, Director of the Glasgow and West of Scotland Forum of Housing Associations, said: "It has always been clear that equity loan schemes offered by commercial companies won't be attractive to owners. We therefore warmly welcome this Scottish Government pilot initiative which offers a really good deal for owners who have some equity in their property but can't afford to pay regular loan interest."
(LM/CD)
