Driving Scotland’s green recovery

Funding to deploy low carbon heat in existing social housing has been fast-tracked to support Scotland’s economic recovery from the coronavirus (COVID-19) pandemic.

The vast majority of the investment made through the Social Housing Net Zero Heat Fund will be made in the coming year to support the start of construction on shovel-ready projects.

It will also deliver a reduction in greenhouse emissions while reducing heating bills for social housing tenants by delivering a minimum of £20 million investment though the Scottish Government’s Low Carbon Infrastructure Transition Programme (LCITP).

The fund will focus on providing financial support for the installation of heat pumps, with biomass boilers and integrated low carbon heat solutions in existing social housing also eligible for support.

Scotland’s Energy Minister, Paul Wheelhouse, said:

“The COVID-19 pandemic has been an unprecedented global crisis which has fundamentally changed almost every aspect of our lives and the Scottish Government is committed to ensuring a strategic economic recovery from the pandemic.

“This £20 million Social Housing Net Zero Heat fund will deliver rapid investment to support both our energy and construction sectors whilst reducing bills for those who in many cases have been worst-hit by the economic impact of COVID-19.

“The Scottish Government remains wholly committed to ending Scotland’s contribution to climate change by 2045 and to ensuring that we do so in a way that leaves no-one behind. The Social Housing Net Zero Heat Fund will deliver on both principles, and my colleagues and I look forward to seeing this investment delivering multiple benefits across our society in the coming months.”

Background

Applications for the LCITP Social Housing Net Zero Heat Fund are open now. Applications are welcome from Registered Social Landlords, Local Authorities and Energy Services Companies (ESCos). Details can be found on the LCITP website.

Projects applying for funding will be required to clearly demonstrate that their pricing model will result in a reduction in energy pricing for the social housing tenants.

The Energy Minister announced in May that, in light of the COVID-19 pandemic, the Heat Transition Deal would be reset and come online in phases over the coming months to support the short-term restart of low carbon heat activity as part of Scotland’s green recovery, as well as the development of a longer-term pipeline of projects.