£300m boost for climate friendly heating

Homes and commercial properties across Scotland will benefit from the establishment of a new £300 million fund supporting the development and roll out of zero emission heat networks.

Zero Carbon Buildings Minister Patrick Harvie announced the new Heat Network Fund at a visit to the Queens Quay heat pump and heat network project.

The fund will support projects where the heat for individual properties is supplied from a communal source. Common in other European countries, there are fewer examples currently in Scotland but those in place typically link up homes, schools, workplaces and other buildings.

The new fund takes over from the Low Carbon Infrastructure Transition Programme and is part of the overall £1.8 billion committed over the course of this Parliament to decarbonise how we heat our buildings.

At the visit, he also announced the opening of applications for the Social Housing Net Zero Heat Development fund and the extension of funding for “Fabric First” energy efficiency projects in social housing.

The development funding will be targeted at small and medium sized registered social landlords (RSLs) who have indicated they require additional support to plan and deliver the roll out of zero emissions heating within their housing stock.  At the same time the Fabric First funding pot for home energy improvements has been extended for another two years.

Mr Harvie said:

“We have committed to reducing greenhouse gas emissions from our homes and buildings by more than two thirds by 2030. By the end of this decade, we aim to have switched over one million homes and the equivalent of 50,000 non-domestic buildings from fossil fuels to zero emission heating.

“The Heat Network Fund will accelerate the development of heat networks across Scotland as we move towards our ambitious targets set by the Heat Networks (Scotland) Act 2021. The projects that receive support from the Fund will fully align with the Scottish Government’s aim to eradicate fuel poverty by supplying heat at affordable prices to consumers, which is especially important now when we are seeing record rises in the cost of heating.

“We can’t reach these targets alone. We know how important increasing private and community investment will be alongside investment from the Scottish Government, that is why we have established the Green Heat Finance Taskforce. The Taskforce brings together leading voices and expertise from the building, finance and energy sectors and aims to identify and develop solutions to deliver the overall investment that’s needed to meet our vital goals for cutting emissions from homes and buildings.”

Background

Scotland’s Heat Network Fund is open to all public and private sector applicants. Proposals can be submitted to the fund at any time. This fund will remain open to proposals with quarterly reports to be provided with committed spend against the allocated budget.

Projects seeking support through Scotland’s Heat Network Fund should complete the expression of interest form and provide this to HeatNetworkFund@gov.scot. The project lead will then be contacted within 10 working days by a member of the Heat Investment team to have for a preliminary discussion.

The Social Housing Net Zero Heat Development fund will be open to applications from 21 February 2022 to 30 May 2022. All development work should be fully completed by 31st October 2022 with possible extension depending on the scale of the work undertaken.

Applications for “Fabric First” funding can be submitted from 21st February 2022 and all works must be completed by 30th March 2024. Full details can found on the Social Housing Net Zero Heat Fund website

Read more on the Scottish Government's Heat in Buildings Strategy

Read more on the Scottish Government's Heat in Buildings: Green Heat Finance Taskforce