This Scottish Government fund encourages commercial interest and investment that will help make the most of Scotland's vast potential in the low carbon sector and contribute 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 will make £300 million available over the next 5 years to support the development and rollout of zero emission heat networks across Scotland.

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 the requirement to install additional zero-emission generation capacity
• decarbonisation of existing fossil fuel heat networks

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

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

Proposals are also welcomed from groups of organisations. 

Scotland’s Heat Network Fund is an infrastructure investment programme that focuses on results and outcomes. All projects must be able to show:

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

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.

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

After they submit 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.

In the case of a group proposal, you must identify a lead body to 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. All partners must be identified in the expression of interest form, with a named contact who can confirm each partner's commitment to the project.

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