Please note that this page contains information and links most relevant for people living in Scotland.
As part of Scottish Government’s regular review of its support programmes, it has decided to close the district heating loan fund on Wednesday 24 April 2024.
This will enable funding for grant programmes to be prioritised and ensure that it’s better placed to make projects financially viable through its existing funding packages. This includes Scotland’s Heat Network Fund.
Although applications for the fund will be accepted up until this date, new loans will be subject to budget availability.
The Scottish Government remains committed to achieving its ambition that homes and buildings will no longer contribute to climate change.
Accelerating the deployment of heat networks continues to be pivotal in helping achieve the transition to net zero and end the use of polluting heat in buildings.
The Scottish Government continues to offer funding support for heat network projects via the following funding offers:
If you have a district heating project and you want to be considered for funding, please download the expression of interest form.
Once you submit your expression of interest we’ll contact you to discuss your project in more detail. Please note the deadline for applications is Wednesday 24 April 2024.
The Heat Networks (Scotland) Bill was introduced to the Scottish Parliament by the Scottish Government on 2 March 2020 and forms part of the Scottish Government’s response to the global climate emergency.
The bill aims to stimulate the deployment of heat networks in Scotland by providing regulation, which will increase investor, consumer and supply chain certainty, as well as build trust in the sector.
Consequently, heating networks in Scotland are expected to create new demands on the supply chains needed to design, install, commission and maintain these networks.
Following a stakeholder workshop in November 2019,* which highlighted that there was a range of skills gaps (for example, design, installation and project management) that were creating challenges for the sector, Energy Saving Trust and the Scottish Government commissioned research to help identify the skills gaps and training needs of the heat network supply chain in Scotland.
*Including product suppliers, energy companies, local authorities, consultants and public sector organisations
You can read a full copy of the report.
Find out more about this research and what the key recommendations are.
The Scottish Government has set a target for 11% of non-electrical heat demand in Scotland to come from renewable sources by 2020.
In order to help measure progress towards this target, Energy Saving Trust maintains a database of renewable heat installations on behalf of the Scottish Government. The database records installations known to be operating and those currently in various stages of development, and contains data on the capacity and yearly heat output of those installations.
The District Heating Loan Fund is funded by the Scottish Government.
Last updated: 27 March 2024
