District Heating Loan Fund

Support provided by Energy Savings Trust

What does this involve?

The District Heating Loan Fund is managed by the Energy Saving Trust on behalf of the Scottish Government. It provides capital loan funding of £1 million plus to organisations in Scotland to use renewables technologies to build out heat networks.

Loans are set at 3.5% and are typically repaid over 15 years. Technical advice and support are also provided in addition to funding.

Am I eligible?

The fund is available to medium to low-risk Scottish companies (or Scottish subsidiary companies) which have been trading for a minimum of 3 years.

The loan can sometimes be provided under a suitable company ’guarantor’ agreement if the business is not able to provide sufficient trading history.

What does this cost?

The loan has no arrangement or administration fee. It is normally repaid over 15 years with an interest rate of 3.5%. It can be repaid earlier with no additional charge. 

The loan can fund up to 100% of eligible costs but can also be match-funded with capital grants where applicable.

Who is this for?

Scottish businesses or organisations based in Scotland, or with Scottish subsidiary companies.

How long does this take?

Once you apply, you will normally get a decision in around 6 weeks, but this depends on the level of due diligence required and can vary from project to project.

Important information

Applications can be made at any time. You will need to complete a formal application form provided by the Energy Saving Trust programme team. They can also help you complete the application if needed.

Next steps

If you are interested in applying, you should submit an expression of interest to districtheatingloans@est.org.uk.

Visit the Energy Saving Trust website for more information on eligibility criteria and the support provided.

Support provided by Energy Savings Trust

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