Heat in Buildings: progress report 2025
Annual update on progress against our Heat in Buildings Strategy and Monitoring and Evaluation Framework.
3. Enablers
3.1. Enabler: green heat sector - workers and skills pipeline
3.1A Indicator: number of people in training to achieve relevant qualifications through apprenticeships, further education and higher education – via Modern and Graduate Apprenticeships and enrolled on Further and Higher Education courses
Data source - numbers in-training in Modern Apprenticeships and numbers enrolled in Graduate Apprenticeships: Skills Development Scotland (SDS) and Scottish Funding Council (SFC)
Data source - numbers enrolled on Further and Higher Education courses: SFC
Unit: number of people
Most recent data: 2024 – 2025
| Modern Apprenticeship Frameworks[20] | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 |
|---|---|---|---|---|---|---|
| Domestic Plumbing and Heating | 1,075 | 979 | 756 | 441 | 89 | 19 |
| Heating, Ventilation, Air Conditioning and Refrigeration | 327 | 268 | 286 | 287 | 293 | 297 |
| Plumbing and Heating | 0 | 103 | 502 | 913 | 1,274 | 1,377 |
| Total | 1,402 | 1,350 | 1,544 | 1,641 | 1,656 | 1,693 |
Note: in the 2024 progress report some figures for previous years were entered under the wrong year column in error, this has been corrected in this report.
| Graduate Apprenticeship Framework | 2019-20 | 2020-21 | 2021-22 | 2022-2023 |
|---|---|---|---|---|
| Construction and the Built Environment | 122 | 84 | 121 | 100 |
Note: 2022-2023 is the latest available data
| Subject classification[23] | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
|---|---|---|---|---|---|---|
| Further Education level of study | ||||||
| Built Environment | 615 | 580 | 665 | 540 | 575 | 465 |
| Building/Construction Operations | 3,400 | 2,955 | 3,430 | 3,550 | 3,805 | 3,540 |
| Building Maintenance/Services | 2,955 | 2,470 | 2,640 | 3,375 | 3,615 | 2,945 |
| Total | 6,970 | 6,005 | 6,735 | 7,465 | 7,995 | 6,590 |
| Higher Education level of study | ||||||
| Built Environment | 125 | 105 | 125 | 90 | 80 | 50 |
| Building/Construction Operations Enrolments | 105 | 100 | 95 | 75 | 65 | 50 |
| Building Maintenance/Services | 135 | 100 | 150 | 125 | 115 | 180 |
| Total | 365 | 305 | 370 | 290 | 260 | 280 |
Note: data are only available up to 2023-2024. The total figure only includes figures included in this report that are relevant to Heat in Buildings. The total figure for all buildings and construction related courses is different.
| Subject classification[25] | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
|---|---|---|---|---|---|
| Building services engineering | 115 | 100 | 90 | 90 | 80 |
| Construction | 70 | 75 | 65 | 65 | 55 |
| Construction and built environment | 190 | 250 | 310 | 465 | 405 |
| Construction management | 775 | 970 | 1,175 | 1,190 | 925 |
| Energy engineering | 435 | 575 | 655 | 645 | 530 |
| Gas engineering | 25 | 15 | 5 | 5 | 5 |
| Building technology | 50 | 50 | 45 | 50 | 50 |
| Conservation of buildings | 55 | 55 | 50 | 50 | 30 |
| Total | 1,720 | 2,090 | 2,405 | 2,560 | 2,080 |
Note: data is only available up to 2023-2024.
Commentary:
The number of people in-training on Modern Apprenticeships analysed in this report was almost 1,700 in 2025, a figure which has grown slowly in recent years, mainly due to growth in the number of trainees on the Plumbing and Heating framework.
In addition to this, the Graduate Apprenticeship framework for Construction and the Built Environment was established in 2018-19. Enrolments have remained steady for the three years for which data are published.
There were around 7,000 enrolments at Scottish Colleges in 2023-24 in courses analysed in this report, the vast majority (96%) of which were at Further Education level of study.
In 2023-24, there were over 2,000 full person equivalent enrolments on relevant subjects at Scottish Universities. Most enrolments in 2023-24 were at the postgraduate level (65%), compared to undergraduate (35%).
While data on apprenticeship trainees and Further and Higher Education enrolments give an indication of the scale of the skills pipeline for the sector, there are limitations because educational groupings can be quite broad. We will work with SFC and SDS to understand the alignment between existing courses and frameworks and heat skills relevant to the heat transition. However, the subject classifications used in Table 11 represent the best currently available option for analysing skill levels in the sector.
3.2. Enabler: public engagement
3.2A Indicator: public awareness and understanding of the need for the transition from fossil fuel heating to clean heat alternatives, of the changes that individuals and businesses need to make, and how to access support.
Data sources: Scottish Household Survey (SHS), Scottish Climate Survey (SCS)[26]
Unit: percentage of households who report having an awareness of renewable power and renewable clean heating systems
Most recent data: 2024
| SHS LCR1[27]– estimated awareness of renewable power or renewable heating systems | 2018 | 2022 | 2024 |
|---|---|---|---|
| Biomass boiler (this may involve burning wood logs, pellets or chips to provide central heating and/or hot water) | 32% | 30% | 28% |
| Air source heat pump | 18% | 30% | 35% |
| Ground source heat pump | 20% | 27% | 29% |
| Solar panels for electricity or to provide hot water | 57% | 57% | 59% |
| Micro-CHP unit | 7% | 7% | 7% |
| District Heating System | 10% | 11% | 11% |
| None of these | 39% | 40% | 38% |
| Don't know | 2% | 2% | 1% |
| Any of the systems mentioned | 59% | 59% | 61% |
Commentary:
Using the question LCR1 from the SHS, it is estimated that in 2024 61% of households were aware of renewable power or low / zero carbon heating systems. This is a two percentage point increase compared to 2022. This increase was largely driven by a five percentage point increase in awareness of air source heat pumps between 2022 and 2024 and a two percentage point increase in awareness of ground source heat pumps and solar panels over the same period. Conversely, there was a 2% drop in awareness of biomass boilers between 2022 and 2024.
The SCS was undertaken between October 2024 and January 2025. The survey assessed public awareness and understanding of, and engagement with, climate change-related issues. This included an assessment of respondents’ awareness and understanding of the heat transition, as well as their willingness/intention to install energy efficiency measures and/or a clean heating system in their home. These data complement data on public awareness of clean heating systems collected via the SHS. Key findings from the SCS are as follows:
- the main perceived barriers to installing wall or floor insulation were cost and concerns about the installation being too disruptive.
- ownership of clean and renewable heating systems was uncommon, with less than 5% of households reporting they had a heat pump installed at home.
- among those planning to install such a system in future, households were more likely to say they were planning to install a heat pump than an electric heating system.
- cost and a lack of interest were the main barriers given to installing a heat pump.
- The SCS was designed to be repeated as required to support monitoring of progress towards climate goals.
3.2B Indicator: public participation in the heat transition – number of opportunities available for people to engage in heat transition-related public engagement activities in Scotland (for example public consultations and related engagement events, and citizens’ panels)
Data source: no data source currently
Unit: to be confirmed
Most recent data: N/A
Commentary:
See above commentary under indicator 3.2A on the public engagement strategic framework.
Qualitative research into public participation in the heat transition was undertaken in 2024, via ClimateXChange. Findings were published in September 2024. The research found that a wide range of organisations across public, private and charitable sectors have delivered varied public engagement activities on the heat transition in Scotland. While these activities typically aimed to reach broad audiences, actual engagement skewed toward those already climate-aware, with messaging around energy efficiency and cost savings proving more effective than the promotion of clean heating systems. Audiences currently under-engaged in the heat transition include landlords, renters, young people, and the digitally excluded.
In May this year Consumer Scotland published research, conducted by Changeworks, looking at the barriers faced by consumers to installing heat pumps. The research identified high upfront costs, myths and misinformation about the effectiveness of low carbon technology and the disruption associated with installation as the main barriers.
Research evaluating the current customer journey in the heat transition will commence in autumn 2025. It will explore whether the current customer journey is effective, easy to navigate, seamless from a customer’s perspective, and gives customers the information they need to continue their journey to a successful outcome. This qualitative research will provide an opportunity for people to help shape Scottish Government policy and delivery schemes.
3.2C Indicator: public willingness and intention to undertake energy efficiency improvement measures and install clean heating systems
Data sources: SCS
Unit: to be confirmed
Most recent data: See SCS data detailed in indicator 3.2A.
Commentary:
See commentary under indicator 3.2A, above.
3.3. Enabler: access to funding and finance
3.3A Indicator: number of privately available financing products
Data source: Green Finance Institute – UK Green Mortgage Products[28]
Unit: number of products
Most recent data:
- number of privately available financing products: 61
Commentary:
The investment required in the Scotland’s housing stock cannot be solely funded by government. Access to private sector finance is essential to fund energy efficiency upgrades. The UK green mortgage market has grown from four products in 2019 to 61 in 2024. This demonstrates the increased interest of investors in green finance. Although the products vary, all aim to incentivise homeowners to invest in improving the energy efficiency of their properties.
The Green Finance Institute dataset is UK-wide, with 38 of the 61 products available from lenders who operate in Scotland, although some of these lenders restrict lending to mainland Scotland.
We include a summary of the Scottish Government’s work to support the scale up of private finance needed for the heat transition at indicator 4.2.1F.
3.3B Indicator: level of private financing leveraged by public funding
Data source: data from the Scottish Government’s heat networks, social housing and public sector delivery schemes
Unit: ratio
Most recent data: 2024
| Low Carbon Infrastructure Transition Programme (non-Heat Network projects; £m) SG | Heat networks (Scotland’s Heat Network Fund & Low Carbon Infrastructure Transition Programme; £m) SG | Total SG across both programmes (£m) | |
|---|---|---|---|
| 2019 | 6.2 | 7.4 | 13.6 |
| 2020 | 3.1 | 8.5 | 11.6 |
| 2021 | 4.5 | 7.8 | 12.3 |
| 2022 | 0 | 18.3 | 18.3 |
| 2023 | 0 | 1.1 | 1.1 |
| 2024 | 0 | 0 | 0 |
| Low Carbon Infrastructure Transition Programme (non-Heat Network projects; £m) Non-SG | Heat networks (Scotland’s Heat Network Fund & Low Carbon Infrastructure Transition Programme; £m) Non-SG | Total non-SG across programmes (£m) | |
|---|---|---|---|
| 2019 | 6.4 | 7.4 | 13.8 |
| 2020 | 3.2 | 8.5 | 11.7 |
| 2021 | 9.8 | 8.6 | 18.4 |
| 2022 | 0 | 18.3 | 18.3 |
| 2023 | 0 | 1.1 | 1.1 |
| 2024 | 0 | 0 | 0 |
Commentary:
Non-Scottish Government funding may include private finance in addition to council funds and other schemes, for example ECO4.
Scotland’s Heat Network Fund (SHNF) and Low Carbon Infrastructure Transition Programme (LCITP) figures are based on the year grants have been awarded. In 2024, no new heat network grants were awarded due the Fund being a demand led scheme and no applications exiting the assessment process with a successful outcome in 2024. There has been an increase in applications for the Fund in 2025 and we expect to see an increase in successful applications in 2025.
LCITP closed to new applications in February 2022 after which no new grants were awarded under this scheme.
Only grant awards which have leveraged private finance have been included – those grants which used only public/other funding have not been included.
Please note this data includes only SHNF/LCITP eligible costs and there may be additional costs incurred from private finance partners, including those related to future expansion of the systems. For example, many heat networks will build phase 1 and attract further private finance to progress further phases of construction.
We are aware that there are likely to be other Scottish Government-funded delivery schemes that help to leverage private investment and hope to include these for future reports. For example, the Social Housing Net Zero Heat Fund (SHNZHF) is a match-funded grant programme with registered social landlords making a contribution of between 40% and 50% of eligible project costs.
3.4. Enabler: matters reserved to the UK Government [29]
3.4A Indicator: UK Government policy position: gas and electricity prices
Data sources: energy price cap levels[30], annual average non-domestic energy prices[31], and a qualitative update from officials
Unit: ratio between domestic gas and electricity prices and a qualitative update
Most recent data:
- annual average domestic energy prices: in 2024-25, domestic electricity prices were 3.99 times higher than gas.
- annual average non-domestic energy prices: in 2024, average non-domestic electricity prices were 4.64 times higher than gas.
Commentary:
The ratio of 3.99 of domestic electricity to gas prices in 2024-25 is lower than in 2019-20, when electricity prices were 4.66 times higher. In the non-domestic sector, the ratio of 4.64 in 2024 is lower than in 2019, when electricity prices were 5.19 times higher.
However, this ratio still means that running costs will likely increase for homes and non-domestic properties switching to electric heating from gas, unless further mitigations are made. For example, installing a heat pump can go some way to mitigating this increase, as heat pumps can be up to three times more efficient than a gas boiler. Furthermore, when moving away from gas, homes will no longer be required to pay the gas standing charge, and when installed alongside energy efficiency measures, there is scope for energy costs to fall when a heat pump is installed. Actual running costs will depend on multiple factors at the property level, such as the incumbent system, the choice, design and operation of the alternative system, and the ratio of space to water heating.
They will also depend on the evolution of energy prices, which is highly uncertain due to the volatility of energy markets and UK Government decisions around rebalancing gas and electricity prices.
In the past 12 months (June 2024-June 2025), wholesale electricity prices have decreased by around 3.5%, but remain higher than 2021 pre-crisis levels[32]. Wholesale electricity prices are heavily influenced by changing gas prices due to the structure of the GB electricity market, where prices are set by the last unit of electricity needed to meet demand, which is typically provided by gas-fired power stations[33].
On 10 July 2025, the UK Government announced in its “Review of electricity market arrangements (REMA): Summer update 2025” that it had decided to retain a single national GB-wide wholesale market and introduce a package of reform to improve the efficiency of our future power system and had therefore chosen not to implement zonal pricing. Now that it has discounted zonal pricing, we urge the UK Government to immediately set out what a reformed national market will mean for bill-payers. This is vital to incentivise the installation of clean heating systems in a way that alleviates fuel poverty and the cost-of-living crisis.
3.4B Indicator: UK Government policy position: network planning and investment
Data source: qualitative update from officials
Unit: N/A
Most recent data: see commentary below
Commentary:
Expansion of the electricity grid will play a crucial role in delivering our energy ambitions and maximising the economic opportunities of Scotland’s abundant renewable resources. Current grid capacity is holding back our ability to develop renewable sources of electricity generation and further decarbonise our economy, including heat in buildings.
The UK Government is responsible for policy relating to strategic energy network planning and network connections. These tasks are carried out by the National Energy System Operator (NESO), managing the connections process alongside Transmission Owners and Distribution Network Operators (DNOs) across Great Britain and regulated by Ofgem.
The UK Government published the Clean Power by 2030 Action Plan to decarbonise GB’s energy systems and is introducing new powers to allow Scottish Ministers to reform the consenting process for electricity infrastructure through the Planning and Infrastructure Bill.
The ongoing reforms to the electricity network connections queue process will look to align electricity network connections with the Clean Power 2030 Action Plan and NESO’s strategic plans, including the Strategic Spatial Energy Plan, which the UK Government has confirmed will be at the centre of a reformed energy system. Through this we want to ensure projects based in Scotland which are required to meet our ambitions can connect to the grid when they are ready to do so, including heat infrastructure.
We broadly welcome the UK Government response to the National Infrastructure Commission’s (NIC) Study ‘Electricity Distribution Networks: Creating Capacity for the Future’. This set out NIC’s 14 recommendations with actions for UK Government, NESO, Ofgem and DNOs which aim to support the necessary development of the electricity distribution network to enable transition to a net zero economy. As electricity distribution networks are crucial to support the decarbonisation of heat in buildings, and some recommendations touch on devolved matters, officials will continue to engage with the UK Government as the actions are progressed.
3.4C Indicator: UK Government policy position: the future of the gas grid
Data source: qualitative update from officials
Unit: N/A
Most recent data: see commentary below
Commentary:
Ofgem’s price control methodology[34] which will apply from 2026-2031 does not expect large scale, systemic changes to gas network operation. Safety and resilience remain important given the networks’ vital role. However, responding to the uncertain future of gas is the largest gas issue impacting the price control methodology.
Ofgem noted that there is still uncertainty in the pace and scale of the transition away from natural gas which will be influenced by future government decisions.
The previous UK Government set an ambition to make a strategic decision in 2026 on whether to use hydrogen for domestic heating. Ofgem will continue to work with the current UK Government to understand the implications of any hydrogen heating decision and to determine the most appropriate way for the price control to fund network investment, decommissioning or other changes in spending because of this decision.
The Scottish Government’s policy position remains that hydrogen will not play a central role in the overall decarbonisation of home heating but could have a part to play in central areas in Scotland where electrification is not the optimal solution.
3.4D Indicator: the percentage of UK heat pump installations which take place within Scotland as a result of the Clean Heat Market Mechanism
Data source: no data source currently
Unit: per cent
Most recent data: see commentary below
Commentary:
While heat and energy efficiency are devolved policy areas, action is also needed in reserved areas to help ensure the transition is fair and affordable. The Clean Heat Market Mechanism started on 1 April 2025 and will run until at least 2029. The UK Government ran a consultation from 7 May 2025 until 2 July 2025 seeking views on the heat pump credit target for Year 2 of the Clean Heat Market Mechanism, and a proposal to name MCS as the sole certification scheme. The consultation responses are currently being analysed and an update will be published in due course.
3.5. Enabler: heat infrastructure and planning
3.5A Indicator: number of properties covered by a designated heat network zone:
- domestic
- non-domestic
Data source: no data source currently
Unit: number of properties
Most recent data: see commentary below
Commentary:
Currently no properties are within a heat network zone as no local authority, nor the Scottish Ministers, have designated one. We expect this will occur in the near future once the Scottish Government has set out any potential legal consequences for existing buildings that are located within a heat network zone. Given that our Heat in Buildings Bill consultation proposed that new obligations could be placed on building owners within Heat Network Zones, we advised local authorities earlier in 2024 that they should take care in proceeding to designate Heat Network Zones at this time. Once final decisions have been made, we will set out how we will support local authorities in designating Heat Network Zones.
Local authorities are required to publish Local Heat and Energy Efficiency Strategies (LHEES), many of which identify significant opportunities for district heating. Our Heat Networks Support Unit (HNSU) is working with local authorities to take the potential heat network zones identified through LHEES and develop them into projects through feasibility and business case support. In November 2023, the HNSU introduced its Strategic Heat Network Support to help local authorities to develop strategic plans for district heating deployment and identify ways to attract private investment, for example by exploring and identifying a suitable and long-term heat network delivery model for their area.
See indicator 4.2.1B for more details about how the Scottish Government has been engaging closely with local authorities on their LHEES, and indicator 2.2.3A for more information on limitations to existing heat network monitoring data.
Contact
Email: heatinbuildings@gov.scot