Heat Network Fund

Support provided by Scottish Government

What does this involve?

This Scottish Government fund aims to encourage commercial interest and investment to make the most of Scotland's vast potential in the low carbon sector, while contributing to the positive progress already made in reducing Scotland's greenhouse gas emissions.

Eligible projects must be large-scale and based in Scotland. As well as helping reduce emissions, successful projects should also have positive social and economic benefits for Scotland.

The Scottish Government are making £300 million available over the next 5 years to support the development and rollout of zero emission heat networks across Scotland.

Am I eligible?

The following types of project will be eligible:

  • new low or zero emission heat network projects
  • new low or zero emission communal heating systems
  • expansion of existing heat networks, with requirements to install additional zero emission generation
  • decarbonisation of existing fossil fuelled heat network

Proposals are welcome from zero emission heat network projects. They must have a:

  • project location
  • proof of technology concept
  • end user for their output

Proposals are also welcomed from groups of organisations. In the case of a group proposal, a lead body must be identified that will be responsible for all aspects of the management and delivery of the project. This includes accepting responsibility on behalf of the consortia for all offers of funding and any associated conditions of funding.

Scotland’s Heat Network Fund is an infrastructure investment programme that focuses on results and outcomes.

All projects must be able to:

  • demonstrate their contribution to zero emissions heat targets, including the potential to reduce greenhouse gas emissions (MtCO2e) and energy consumption
  • provide confirmation of other sources of funding or finance that contribute to the final delivery costs of the project
  • demonstrate additionality and their need for grant support, including clear evidence of the funding gap
  • demonstrate their organisation’s commitment to the Fair Work criteria
  • demonstrate the project will provide heat at an affordable cost to consumers and help stop fuel poverty
  • show a positive and significant impact on skills and the supply chain in Scotland
  • demonstrate they will be commissioned by March 2026

What does this cost?

This funding will cover up to 50% of the eligible capital expenditure of the project. You will need to cover the rest through other sources.

As part of the application, projects will be required to demonstrate the additionality of support through the fund, including how much support they'll need to deliver an investable project.

Who is this for?

This fund is open to all public and private sector applicants. 

How long does this take?

After submitting an expression of interest form, project leads will be contacted within 10 working days by a member of the Scottish Government Heat Investment team to have an initial discussion.

Next steps

Visit the Scottish Government wesbite for more information on the fund, including eligibility and how to apply.

Support provided by Scottish Government

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