Annual energy statement: 2020

This year’s energy statement highlights the key developments in the sector that have influenced the Scottish Government's ability to deliver the targets set out in the current Energy Strategy, published in December 2017.

9. Energy Efficiency Measures

Overall decreases in energy consumption were aided by improvements in the energy efficiency of buildings.

43% of Scottish homes had a good energy efficiency rating (EPC band C or better)

59% of dwellings had some form of wall insulation

94% of homes had 100mm of more of loft insulation

The Climate Change (Emissions Reductions Targets) (Scotland) Act 2019 sets a clear and challenging legal requirement for emissions to be reduced to net zero by 2045. 20% of Scotland’s emissions come from heating our buildings[5]. Reducing these emissions towards net zero over the next 20-25 years will be a massive undertaking – requiring effort from government, business, homeowners, the public sector, the construction sector and manufacturers of heating equipment.

The Scottish Government will continue to develop an integrated approach to reducing demand for heat and emissions from heat supply through a combination of incentives, regulation and public awareness. Over the course of the next year we will:

  • Publish the update to the Climate Change Plan sectoral pathway for heat in Buildings, including the updated proposals and policies to meet this pathway;
  • Publish a Heat in Buildings Strategy which combines our update to the Energy Efficient Scotland Route Map with forthcoming heat policy statement in one cohesive strategy that will set out more detail on how we will deliver the proposals and policies set out in the Climate Change Plan update;
  • Legislate via the Heat Networks (Scotland) Bill to ensure that district and communal heating is properly regulated, as it delivers a greater share of our future heat supply; and
  • As described in the previous section on local energy systems, work with our local government partners to develop Local Heat and Energy Efficiency Strategies which will enable coordinated, strategic approaches to the development of low carbon heat supply, as well as energy efficiency.
  • Continue to support the acceleration of the shift to low carbon, local energy solutions through various funding programmes through £120 million Heat Transition Deal, including:
    • £50m Low Carbon Heat and Energy Systems Funding Call delivered by the highly regarded Low Carbon Infrastructure Transition Fund (LCITP), to accelerate the delivery of large scale low carbon heat infrastructure projects, including heat pumps and heat networks; and
    • £20m Funding Call to support installation of low carbon heat solutions in Social Housing, also delivered by LCITP.
  • Continue to deliver real measures on the ground through Energy Efficient Scotland via Warmer Homes Scotland, local authority-led Area Based Schemes, as well as continuing to take steps to develop the regulatory spine of Energy Efficient Scotland.
  • Launch a domestic cashback scheme alongside our Home Energy Scotland loan to support householders to transition to renewable heating sources – householders will be able to apply for up to 75% cashback (up to £7,500 in value) on loans to install renewable heating and a 40% cashback (up to £6,000) for energy efficiency measures.
  • Launch a cashback scheme to support SMEs to transition to renewable heating sources – SMEs can apply for up to 75% cashback (up to £10,000 in value) on interest-free loans to install renewable heating and a 30% cashback (up to £10,000) for energy efficiency measures
  • Continue to deliver investment in the decarbonisation of public sector buildings through the Non-Domestic Energy Efficiency Framework and Loan Scheme.
  • Launch the Industrial Energy Transformation Fund (IETF) in Scotland to support energy intensive industries (EII) to transition to a low carbon future and to reduce energy costs and emissions through increased energy efficiency.



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