Heat Pump Sector Deal Expert Advisory Group: Scottish Government response

Recommendation 14

The Scottish Government should continue to support demonstration programmes but focus this support where these will directly inform and enhance the mass deployment pathway.

Scottish Government Response

Through Scotland's Heat Network Fund^[16] we have made available a budget of up to £300 million over the course of the current parliament, which aims to accelerate the deployment of heat networks that supply low carbon heat from sources such as heat pumps, including shared ground loop systems, and recovered waste heat. As well as supporting new networks, funding is also available for the decarbonisation and extension of existing heat networks in Scotland. The grant support offered will play an important role in demonstrating the viability of heat networks, both in terms of their business model and their ability to supply affordable and reliable low carbon heat to consumers.

In September 2022, we launched the Heat Network Support Unit^[17] (HNSU). The HNSU will support the growth of heat networks by addressing key challenges in the pre-capital stages of heat network development and building capacity across the public and private sector to deliver successful projects. It will identify prospective heat network projects; support the development of heat network projects across Scotland, through advice and grant funding; and build capacity and expertise across the public (and private) sector in Scotland to develop and run successful heat networks.

The Social Housing Net Zero Heat Fund^[18] is making £200 million of grant funding available over this parliamentary term to accelerate the deployment of zero emissions heat and energy efficiency improvements in social housing across Scotland. The fund provides grant support of up to 50% of eligible costs for the retrofit of existing social housing. Applications for all sizes of projects are welcome, with multi-year programmes that take a strategic approach to decarbonisation encouraged.

The Scottish Government will continue to support, where appropriate, programmes of work that align with our net zero ambitions and enhance the deployment of both energy efficiency measures and zero emission heating systems.