Heat in Buildings: progress report 2026

Heat in Buildings – update

This section provides an update on progress against key policy and regulatory areas (indicator 4.2.1 in last year’s report). There have been developments in policy and changes to the wider social, economic and political context since last year’s report. We have reflected these changes by reporting on a new set of key issues.

Climate Change Plan

This report aligns with the Scottish Government’s Climate Change Plan Monitoring Report that will publish in 2027. This will be the first report on progress following the publication of our Climate Change Plan in March 2026, which set a target for decarbonising heating systems by 2045 so far as reasonably practicable. We said that a transformational change was needed to the way in which we heat our residential and public buildings, while continuing to reduce fuel poverty.

Heat in Buildings Delivery Programmes

We will continue to deliver Heat in Buildings support schemes and advice services to support a wide range of groups to decarbonise heat in our buildings. Indicators 4.1.2 and 4.1.3 set out progress under each of these schemes in the past year.

In February 2026, our flagship fuel poverty scheme, Warmer Homes Scotland, reached a milestone by supporting its 50,000^th customer. The occasion was marked with a visit from the First Minister to Warmworks offices giving him the opportunity to meet a Warmer Homes Scotland customer who has benefitted from the scheme. Warmer Homes Scotland also installed 1,117 clean heating installations in 25/26 - the highest number in any single year of the scheme.

Heat Networks

We published our Heat Networks Delivery Plan Review Report in March 2026 which outlined progress on the delivery of heat networks in Scotland.

We provided £3.9 million in grant funding through Scotland’s Heat Network Fund in 2025, which included a grant to Renfrewshire Council for the development of a new low carbon communal heat network serving 180 social housing properties in Paisley. The project is due to complete by the end of 2026.

UK Government

While heat and energy efficiency are devolved policy areas, action is also needed in reserved areas to help ensure that the transition is fair and affordable. The high cost of electricity is the biggest obstacle to reducing household bills and encouraging the uptake of clean heating impacting both householder installations and clean heat infrastructure projects. Scottish Ministers continue to urge the UK Government to take steps to reduce the cost of electricity (which will make clean heating systems more affordable) as well as to introduce measures which will target support at, and reduce the energy bills of, those in greatest need.

Energy Performance Certificate (EPC) Reform

We announced on 17 March 2026 that regulations introducing new-style EPC certificates, validity periods and rating systems in Scotland would not come into force, as planned, in October 2026. This is a result of the delayed launch date for new EPCs in England and Wales, and the impacts that this has on Scotland.

Following extensive engagement with the UK Government and with the EPC assessor industry on the implementation of EPC reform, we have since laid amended regulations for reforming EPCs in the Scottish Parliament on 24 August 2026 which – if agreed by Parliament – will see our regulations now come fully into force on 30 April 2028.

There is no other change to the substance or content of the Energy Performance of Buildings (Scotland) Regulations 2025, and there has been no change to our policy objectives for EPC reform in Scotland.

Energy Efficiency Standards

We will continue to consider proposals to improve energy efficiency in homes and buildings across Scotland.

While the delays to EPC reform, discussed above, meant that final decisions on setting new energy efficiency standards could not be made during the last session of Parliament, we have continued work over the last year to progress proposals:

• Private rented sector (PRS) – following our public consultation on setting a minimum energy efficiency standard in the PRS we have undertaken detailed analysis of the responses submitted and conducted further direct engagement with key stakeholders on the issues raised.
• Social rented sector – we continue to progress work to set a new Social Housing Net Zero Standard that addresses both the need to improve energy efficiency and transition to clean heat. In March we reconvened the industry Review Group co-developing the Standard with Scottish Government and published revised interim guidance for social landlords stating our aim of finalising the new standard in 2027.
• Owner occupied homes and non-domestic buildings – in November we published a draft Heat in Buildings Bill. This included provisions to take new powers to set minimum energy efficiency standards across different types of buildings in the future, including privately owned homes and industrial or commercial buildings.