Heat in Buildings: progress report 2026
Annual update on progress against our Heat in Buildings Strategy and Monitoring and Evaluation Framework.
Indicators
1. Goals
1.1. Buildings emissions net zero by 2045
1.1A Indicator: annual/actual emissions compared to the annual emissions envelope for the buildings and product use sector (in MtCO2e)
Data source: Scottish Greenhouse Gas Statistics report
Unit: MtCO2e
Most recent data: 2024
| Year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| Emissions (MtCO2e) | 9.0 | 8.6 | 9.2 | 7.8 | 7.5 | 7.6 |
Commentary:
Greenhouse gas statistics are published in June of each year with a 1.5-year lag. Latest statistics are for 2024 when Buildings sector emissions were 7.6 MtCO2e. This is a marginal increase from 2023 of 1.3%. Analysis on buildings emissions, with correction for the annual ambient temperature, shows that whilst historically the average temperature has affected heating demand, for this year there was very little effect on demand caused by the temperature.
Following the publication of last year’s progress report, we have published the Climate Change Plan to set out the proposals and policies for meeting the Scottish carbon budget targets to 2040.
2. Outcomes
2.1. Reduced energy demand to buildings
2.1.1. Method: ensuring a good level of energy efficiency in domestic properties
2.1.1A Indicator: share of domestic properties achieving a good level of energy efficiency (currently equivalent to Energy Performance Certificate (EPC) C or better):
- share of owner-occupier properties
- share of private rented sector properties
- share of social rented sector properties
Data source: Scottish House Condition Survey (SHCS)
Unit: per cent
Most recent data: 2024
| Year | 2019 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Share of owner-occupied properties (%) | 41 | 48 | 51 | 52 |
| Share of private rented sector properties (%) | 40 | 50 | 52 | 50 |
| Share of social rented sector properties (%) | 56 | 65 | 69 | 71 |
Commentary:
The percentage of dwellings achieving an EPC rating of at least C under SAP2012 (RdSAP v9.93)[2] continues to increase across all tenure types between 2019 and 2024.
2.2. Increased supply of clean heat to buildings
2.2.1. Uptake of low emissions heating and clean heating in domestic properties
2.2.1A Indicator: number of domestic properties currently with clean heating systems:
- heat pumps
- connected to a heat network
- other electric heating
Data source - heat pumps and electric heating: Scottish House Condition Survey (SHCS)
Data source - heat networks: Heat Networks Metering and Billing Regulations (HNMBR) data
Unit: number of domestic properties
Most recent data[3]:
- heat pumps: 60,000 (around 2.4% of all dwellings)
- connected to a heat network: 36,700 (around 1.5% of all dwellings)
- other electric heating: 198,000 (around 8.7% of all dwellings)
| Year | 2019 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Heat pumps | 23,000 | 34,000 | 45,000 | 60,000 |
| Other electric | 242,000 | 241,000 | 221,000 | 198,000 |
Commentary:
The SHCS is a sample survey with an achieved sample of around 3,000 dwellings per year. All survey figures are estimates of the true prevalence within the population and will lie at the midpoint of confidence intervals which depend primarily on sample sizes.
Heat pumps are relatively uncommon in the Scottish dwelling stock and, as such, represent a small part of the achieved sample each year. There is therefore greater uncertainty in these estimates therefore year on year differences may not be statistically significant.
The SHCS figures are also not directly comparable to the installation figures provided in the following sections.
The heat networks figure is an estimate based on the most recent available data. The number of properties connected to a heat network for 2025 is based on HNMBR notification data spanning 2014 to 2025. Please see annex A for full details on this dataset.
2.2.1B Indicator: number of domestic properties recently installing a clean heating system:
- heat network connections (four-yearly connections data)
- heat pumps (annual installations)
- other electric heating (annual installations)
Data source - heat pumps: Microgeneration Certification Scheme (MCS)
Data source - heat networks: HNMBR data
Data source - other electric heating: no data source currently
Unit: number of properties
Most recent data[4]:
- heat pumps (annual installations): 6,411
- heat network connections (data spanning 2022-2025[5]): 1,100
- other electric heating (annual installations): N/A
| Year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Heat pumps | 2,193 | 2,441 | 4,246 | 4,953 | 6,296 | 7,357 | 6,411 |
Commentary:
Data for the last full calendar year (2025) indicate that the number of heat pumps installed in Scotland has fallen by 13% when compared to the previous year. However, the number of installations in 2025 was nearly three times higher than in 2019. The heat networks figure is an estimate based on the HNMBR dataset. Please see annex A for full details on this dataset.
2.2.1C Indicator: number of domestic properties with low emission or low emission ready heating systems, such as:
- biomass boilers
- combined heat and power (CHP)
Data source - biomass boilers, CHP: SHCS
Unit: number of properties
Most recent data (2024):
- biomass boilers: 12,000
- CHP: 9,000
| Year | 2019 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Biomass | 16,000 | 12,000 | 10,000 | 12,000 |
| CHP | 9,000 | 6,000 | 6,000 | 9,000 |
Commentary:
The number of domestic properties with low emission or low emission ready biomass systems and the number with a CHP system have remained fairly steady since 2019.
2.2.1D Indicator: percentage of new domestic properties with clean heating system completed in the last year:
- with heat pumps
- connected to a heat network
- with other electric heating
Data source: EPC register
Unit: per cent
Most recent data (2025)[6]:
- with heat pumps: 17%
- connected to a heat network: 7%
- with other electric heating: 6%
| Year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Heat pumps | 10% | 12% | 11% | 13% | 14% | 20% | 17% |
| Heat networks | 4% | 2% | 5% | 6% | 6% | 6% | 7% |
| Other electric | 2% | 2% | 3% | 2% | 6% | 7% | 6% |
| Total | 16% | 16% | 20% | 21% | 26% | 33% | 30% |
Commentary:
Building warrant applications from 1 April 2024 require clean heating systems, so we expect to see the percentage of new domestic properties with such systems increase rapidly over the coming years. Building warrants are valid for three years.
2.2.2. Method: uptake of low emissions heating and clean heating in non-domestic properties
2.2.2A Indicator: number of non-domestic properties currently with clean heating systems:
- heat pumps
- connected to a heat network
- other electric heating
Data source - heat networks: HNMBR data
Data source - heat pumps and other electric heating: Non-Domestic Analytics v2 (NDA)
Unit: number of properties
Most recent data:
- heat pumps (2026 data[8]): 30,050 (12.9%)
- connected to a heat network (data spanning 2018-2025[9]): 3,100
- other electric heating (2026 data[10]): 121,790 (52.1%)
Commentary:
As with the domestic heat network connections, due to the known inconsistencies with the way that heat network operators have reported customer connections within the HNMBR data, the number of non-domestic connections reported here is likely to be an underestimation. Please see annex A for full details on the HNMBR dataset.
The significant increase for ‘Other electrical heating’ from last year (97,760) is due to a change in the NDA methodology.
2.2.2B Indicator: number of non-domestic properties recently installing a clean heating system:
- heat pumps (four-yearly figure)
- heat network connections (four-yearly figure)
- other electric heating (four-yearly figure)
Data source – heat pumps: Renewable Heat Database (RHD)
Data source – heat networks: HNMBR data
Data source – other electric heating: EPC Data
Unit: number of properties
Most recent data:
- heat pumps (four-yearly figure): 1,040 (2022-2025)
- heat network connections (four-yearly figure): 170 (2022-2025)
- other electric heating (four-yearly figure): 570 (2022-2025)
Commentary:
The figure for heat network connections is based on the HNMBR dataset and may be an underestimate as it does not include new connections to existing heat networks. Please see annex A for full details on this dataset.
The figure for heat pumps uses data from RHD, a database produced by Energy Saving Trust on behalf of the Scottish Government. See annex A for further information on the RHD.
As for the other electric heating, EPC register data has been used to conduct a timeseries analysis. This means that when a new EPC is generated and a new other electrical heating system is present compared to the old EPC, we assume that the new system is installed when the new EPC is generated. This is not always necessarily correct as an EPC is valid for 10 years and the new EPC could be generated when the old one is expired or when other building updates required it, but it is a good way to begin to report this figure in some capacity.
2.2.2C Indicator: number of non-domestic buildings currently with low emission or low emission ready heating, such as:
- biomass boilers
- CHP
Data source - biomass boilers: Renewable Heat Database
Data source - CHP: Renewable Heat Database and Combined Heat and Power Quality Assurance Scheme (CHPQA)
Data source - fuel cells, hybrid heat pumps and hydrogen-ready boilers: N/A
Unit: number of properties
Most recent data:
- biomass boilers (2025 data): 3,730
- CHP (2025 data[11]): 200
Commentary:
The Renewable Heat Database (RHD) is the most comprehensive known installation database for biomass boilers. However, this is still likely to be an underestimate of the number of properties with biomass boilers as there is a time delay for installations to be made known to the RHD. Also, as with 2.2.2B, the type of property is not known for all properties in the RHD. Around a further 5,000 properties of an unknown type have a biomass boiler and some of these are likely to be non-domestic.
We have used information from two datasets, RHD and CHPQA, to identify non-domestic properties which have a CHP installation as their primary energy system. Previously, NDA was used to update this indicator. However, NDA also includes properties which have CHP as their secondary energy system. As we are using different data sources, this figure is also reported as 2025 (the same as last year’s report). However, we believe that it is likely to be a more accurate representation of how many properties use CHP as their primary energy system. This is the reason that this year’s figure is lower than the last reported figure.
We are continually seeking to improve the data on non-domestic buildings, including updates to the RHD and NDA, and working with the UK Government which has recently developed a National Buildings Database.
2.2.2D Indicator: percentage of new non-domestic properties with clean heat completed in the last year:
- with heat pumps
- connected to a heat network
- with other electric heating
Data source: non-domestic EPC register
Unit: per cent
Most recent data:
- with heat pumps: 47%
- connected to a heat network[12]: 4%
- with other electric heating: 38%
| Year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Heat pumps | 38% | 45% | 35% | 51% | 45% | 44% | 47% |
| Heat networks | 2% | 1% | 5% | 3% | 4% | 2% | 4% |
| Other electric | 19% | 18% | 18% | 14% | 25% | 27% | 38% |
| Total | 59% | 63% | 57% | 68% | 73% | 73% | 89% |
Commentary:
As with indicator 2.2.1D, building warrant applications from 1 April 2024 for non-domestic buildings require clean heating systems, so we expect to see the percentage of new non-domestic properties with clean heating systems continue to increase over the coming years. Building warrants are valid for three years.
2.2.3. Method: rollout of zero emissions heat networks
2.2.3A Indicator: heat supplied by heat networks (statutory target to reach 2.6 Terawatt hours (TWh) by 2027, 6 TWh by 2030 and 7 TWh by 2035) to:
- domestic properties
- non-domestic properties
Data source: HNMBR data
Unit: TWh
Most recent data (data spanning 2014 to 2025):
- domestic properties: 0.56 TWh
- non-domestic properties: 0.82 TWh
- mixed (both domestic and non-domestic properties): 0.19 TWh
Commentary:
We estimate that a total of 1.67 TWh of heat was supplied via heat networks in Scotland in 2025. Progress on the build out/extension of clean heat networks has been hampered by the high cost of electricity and construction inflation. We continue to work with projects to identify and support barrier removal.
This indicator relies on our best estimates on the supply of heat with the limitations of existing data currently available to us, with the latest edition of the HNMBR dataset covering up to September 2025. These estimates are based on HNMBR notification data spanning from 2014 to 2025, aiming to provide an estimate on the whole known heat network sector in Scotland, including known networks that have not notified in the latest data cycle (2022 to 2025). The HNMBR data has been supplemented by information from Scotland’s Heat Network Fund, where we have included the volume of heat supplied by projects that we know have commissioned since the latest edition of HNMBR data (0.093 TWh). Where possible, our estimate includes a breakdown by domestic and non-domestic properties as well as a mixed category that serves both property types. Our estimate relies on limited data with concerns about quality. This includes poor data coverage in key areas which required modelling to fill in the gaps, lack of information around decommissioning of networks, and issues surrounding enforcement of notifications. All of the above factors limit our ability to estimate the true size of the heat networks sector in Scotland or the total amount of heat supplied.
2.2.3B Indicator: share of low carbon heat in existing heat networks
Data source: HNMBR data (share of fuel source and technology)
Unit: per cent
Most recent data (2025):
- Share of low carbon heat in existing heat networks: 11%
Commentary:
This figure remains unchanged from the 2025 progress report[13].
2.3. Outcome: the heat transition is fair, leaving no one behind
2.3.1. Method: heat is affordable
2.3.1A Indicator: percentage of homes in fuel poverty (statutory target in 2040 no more than 5% of households are fuel poor with <1% in extreme fuel poverty)
Data source: SHCS
Unit: per cent
Most recent data (2024):
- Percentage of homes in fuel poverty: 29%
| Year | 2019 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Fuel poverty | 25% | 31% | 34% | 29% |
Commentary:
In 2024, 732,000 households (29% of all households) were estimated to be in fuel poverty, of which 357,000 (14.0% of all households) were in extreme fuel poverty. This is a decrease of 127,000 (or five percentage points) of households in fuel poverty, and a decrease of 134,000 (or five percentage points) in the number of households in extreme fuel poverty compared with the 2023 estimates (last available comparable data). This decrease in the fuel poverty rate largely reflects the fall in energy prices in 2024, with the average index price of fuels in Scotland decreasing by 23% compared with 2023, after peaking in 2022 following Russia's invasion of Ukraine.
The lowest rates of fuel poverty are generally associated with higher energy efficiency standards. 26% of households living in dwellings rated EPC band C or better were fuel poor compared to 36% of households living in dwellings rated EPC band E and 32% for households in band D.
In 2024, 56% of Scottish homes were rated as EPC band C or better under SAP 2012 (RdSAP v9.93), with around 10% of properties rated in the lowest EPC bands (E, F or G). Under SAP 2009, which allows for comparisons over a longer period, 62% of dwellings were rated C or better, up 38 percentage points since 2010. In the same period, the proportion of properties in the lowest EPC bands (E, F or G) has reduced from 27% in 2010 to 8% in 2024.
2.3.2. Method: green heat jobs for the heat transition
2.3.2A Indicator: net change in heat and energy efficiency jobs
Data source: available data insufficient for monitoring
Unit: net change
Most recent data:
- N/A
Commentary:
The Office for National Statistics’ Low Carbon and Renewable Energy Economy (LCREE) survey provides annual estimates of the number of full-time equivalents (FTEs) across sectors including renewable heat, renewable CHP, energy efficient lighting and energy efficient products. LCREE also provides data at the ‘low carbon heat’ grouping. The latest data provides estimates up to 2024. The survey estimates that, in 2024, there were 1,800 FTEs in Scotland working in low carbon heat (compared to 2,600 in 2023). Please note that the 2023 estimate has been revised down slightly from the 2025 progress report. However, as with last year’s report, datasets are insufficient for monitoring purposes due to the wide confidence intervals around the estimates at the Scotland level, making it difficult to say whether year-on-year changes are statistically significant or not. We continue to engage with the Office for National Statistics and UK Government on these issues.
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: 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: 2025-2026
| Modern Apprenticeship Frameworks | Domestic Plumbing and Heating | Heating, Ventilation, Air Conditioning and Refrigeration | Plumbing and Heating | Total |
|---|---|---|---|---|
| 2019 to 2020 | 1,075 | 327 | 0 | 1,402 |
| 2020 to 2021 | 979 | 268 | 103 | 1,350 |
| 2021 to 2022 | 756 | 286 | 502 | 1,544 |
| 2022 to 2023 | 441 | 287 | 913 | 1,641 |
| 2023 to 2024 | 89 | 293 | 1,274 | 1,656 |
| 2024 to 2025 | 19 | 297 | 1,377 | 1,693 |
| 2025 to 2026 | - | 310 | 1,246 | - |
Note: Due to disclosure control, the Domestic Plumbing and Heating in training number is suppressed for 2025 to 2026. The total for 2025 to 2026 is also supressed. All data is those in training as of 31 March.
| Subject classification[16] | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 |
|---|---|---|---|---|---|---|---|
| Built Environment | 615 | 580 | 665 | 540 | 575 | 465 | 340 |
| Building/Construction Operations | 3,400 | 2,955 | 3,430 | 3,550 | 3,805 | 3,540 | 5,150 |
| Building Maintenance/Services | 2,955 | 2,470 | 2,640 | 3,375 | 3,615 | 2,945 | 2,995 |
| Total | 6,970 | 6,005 | 6,735 | 7,465 | 7,995 | 6,590 | 8,485 |
Note: data is only available up to 2025. 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[17] | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 |
|---|---|---|---|---|---|---|---|
| Built Environment | 125 | 105 | 125 | 90 | 80 | 50 | 30 |
| Building/Construction Operations Enrolments | 105 | 100 | 95 | 75 | 65 | 50 | 70 |
| Building Maintenance/Services | 135 | 100 | 150 | 125 | 115 | 180 | 175 |
| Total | 365 | 305 | 370 | 290 | 260 | 280 | 275 |
Note: data is only available up to 2025. 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[19] | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 |
|---|---|---|---|---|---|---|
| Building services engineering | 115 | 100 | 90 | 90 | 80 | 80 |
| Construction | 70 | 75 | 65 | 65 | 55 | 70 |
| Construction and built environment | 190 | 250 | 310 | 465 | 405 | 295 |
| Construction management | 775 | 970 | 1,175 | 1,190 | 925 | 725 |
| Energy engineering | 435 | 575 | 655 | 645 | 530 | 835 |
| Gas engineering | 25 | 15 | 5 | 5 | 5 | 0 |
| Building technology | 50 | 50 | 45 | 50 | 50 | 50 |
| Conservation of buildings | 55 | 55 | 50 | 50 | 30 | 35 |
| Total | 1,720 | 2,090 | 2,405 | 2,560 | 2,080 | 2,095 |
Note: data is only available up to 2024 to 2025.
Commentary: 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 we have used represent the best currently available option for analysing skill levels in the sector.
3.2. Enabler: access to funding and finance
3.2A Indicator: number of privately available financing products
Data source: Green Finance Institute – UK Green Mortgage Products[20]
Unit: number of products
Most recent data:
- number of privately available financing products: 94
Commentary:
The investment required in Scotland’s housing stock cannot be solely funded by government. Access to private sector finance is essential for home and other building owners to be able to fund energy efficiency and clean heat upgrades. The UK green mortgage market has grown from four products in 2019 to 94 in 2025, demonstrating increased interest among investors in green finance.
3.2B 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: 2025
| SG funding provided for heat networks; £m | Co-invest from private and other funders for heat networks; £m | Total heat network funding; £m | |
|---|---|---|---|
| 2019 | 7.4 | 7.4 | 14.8 |
| 2020 | 8.5 | 8.5 | 17 |
| 2021 | 7.8 | 8.6 | 16.4 |
| 2022 | 18.3 | 18.3 | 36.6 |
| 2023 | 1.1 | 1.1 | 2.2 |
| 2024 | 0 | 0 | 0 |
| 2025 | 3.9 | 5.8 | 9.7 |
| Total £m | 47 | 49.7 | 96.7 |
Commentary:
Funding for heat networks has been provided through the Low Carbon Infrastructure Transition Programme (LCITP) and Scotland’s Heat Network Fund (SHNF).
A key aim of our heat network funding programmes has been to leverage investment from other sources, including the private sector, into heat decarbonisation. Grant has been provided at a maximum of 50% of eligible capital costs. The application process for these funding awards has assessed the financial performance of projects and identifies the level of grant funding required to provide a sufficient return to unlock co-investment from other organisations. The aim is to reduce the Scottish Government intervention required over time as the heat network market becomes increasingly economically viable and competitive.
The LCITP launched in 2015 and closed to new applications in 2022. The LCITP provided grant funding for a variety of different low carbon infrastructure projects in Scotland.
Launched in 2022, the SHNF makes capital grant funding available to public and private sector organisations to support the roll out of zero emission heat networks across Scotland.
Figures are provided in the year that the project was awarded funding under LCITP or SHNF. In 2024, no new grant awards were issued due to a lack of applications successfully demonstrating that they met the SHNF funding criteria. The level of private/non- government funding is the reported total project costs covered by the Grantee. Therefore, there may be additional costs to wider project mobilisation that are not accounted for in the reported total project capital costs.
3.3. Enabler: matters reserved to the UK Government [21]
3.3A Indicator: UK Government policy position: gas and electricity prices
Data sources: energy price cap levels[22], annual average non-domestic energy prices[23], 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 2025 to 2026, domestic electricity prices were 4.08 times higher than gas.
- annual average non-domestic energy prices: in 2025, average non-domestic electricity prices were 4.604 times higher than gas.
Commentary:
Under current market arrangements, gas frequently sets the wholesale electricity price, leading to unnecessarily high costs, which drives fuel poverty and penalises Scottish industry. The fundamental fiscal and policy levers to make a real difference lie with the UK Government, such as energy price setting and market reform.
With gas prices almost doubling and oil prices rising significantly following the conflict in the Middle East, the effect on households, industry, and the wider energy system is already being felt. This further exposes the current wholesale electricity market as being unfit for purpose which leaves consumers exposed to high energy costs, driven by volatile natural gas prices. Clean heat investment is likely to be more challenging if electricity remains expensive.
Energy market reform is essential, and although we welcome the 21 April 2026 announcement to decouple gas and electricity prices, Scottish Ministers do not believe that the proposed measures go far enough and that further action will be needed to reduce the electricity to gas price ratio.
3.3B 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.
Ofgem’s RIIO-T3 period[24] will run from 2026 to 2031 and the settlement will support the development of electricity infrastructure to manage existing constraints on the system. This will result in lower consumer costs in the long term, as well as supporting increased demand for renewable power across GB as we transition to a net zero economy. In Scotland, SSEN and SPEN (the network operators in Scotland) are due to deliver unprecedented levels of over £40 billion of Ofgem approved investment in the transmission network across Scotland over the next five years.
In May, Ofgem published its Sector Specific Methodology decision for the next distribution price control, ED3, period, which will run from 2028-2033. This will be an essential enabler of renewables and electrification to meet net zero in Scotland, by informing investment decisions, network capacity, and regional growth.
3.3C 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:
Due to continued uncertainty, Ofgem has adopted a flexible approach within RIIO-GD3, to maintain network resilience while retaining flexibility to respond to future strategic decisions on the role of gas infrastructure. The UK continues to assess evidence on the future role of hydrogen in heat decarbonisation. 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 certain areas in Scotland where electrification is not the optimal solution.
3.4. Enabler: heat infrastructure and planning
3.4A 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:
This indicator has not changed from the 2025 report as no additional heat network zones have been designated in line with expectations following the preparation of LHEES
4. Activities (policy and delivery)
4.1. Delivery schemes
4.1.1. Type: funding schemes – energy efficiency, clean heat and microgeneration
Our delivery schemes, summarised in Annex B, continue to provide funding through grants and loans to homes and businesses to install energy efficiency measures and clean heating systems, including targeted support for those in or at risk of fuel poverty.
4.1.1A Indicator: number of improvement measures supported across all delivery schemes by sector during the last year:
- domestic – owner-occupier
- domestic – private rented sector
- domestic – social rented sector
- non-domestic – small and medium-sized enterprises (SME)
- non-domestic – public sector
Data source: Scottish Government delivery scheme data
Unit: number of installed measures
In this year’s progress report, we report on the number of energy efficiency, clean heat[25] and other renewables[26] (e.g., microgeneration) measures installed per annum. The same property could receive a number of measures so this does not equate to the unique number of properties supported (we include data on the number of properties supported by a scheme where available).
Most recent data: Most recent data for schemes are for the financial year 2025 to 2026, except the ABS, where the most recent data is for 2024-25.
Home Energy Scotland (HES) Grant and Loan Scheme
The scheme provides grants and loans to install clean heat and energy efficiency measures and is open to all domestic owner-occupiers in Scotland.
The continued decrease in the overall number of applications is a result of the removal of eligibility for the installation of solar measures between 2023 and 2024, allowing us to prioritise finite funding for heat pump installations and energy efficiency measures. These measures directly contribute to the decarbonisation of a home’s heating and reduce heat demand which would be less likely to happen without government support.
| 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | |
|---|---|---|---|---|---|---|---|
| Energy efficiency | 997 | 615 | 796 | 1,013 | 2,030 | 1,960 | 2,143 |
| Other renewables/ clean heat | 965 | 783 | 2,115 | 4,983 | 8,989 | 5,396 | 3,493 |
| 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | |
|---|---|---|---|
| Energy efficiency | 2,030 | 1,960 | 2,143 |
| Of which, insulation | 1,721 | 1,665 | 2,101 |
| Of which, other energy efficiency[28] | 309 | 295 | 42 |
| Other renewables/clean heat | 8,989 | 5,396 | 3,493 |
| Of which, ZDEH /biomass[29] | 2,306 | 2,658 | 2,712 |
| Of which, solar PV | 3,368 | 1,319 | 371 |
| Of which, battery storage | 3,216 | 1,406 | 383 |
| Of which, other renewables[30] | 99 | 13 | 27 |
Warmer Homes Scotland
Warmer Homes Scotland (WHS) is the Scottish Government's national fuel poverty programme designed to help those households living in or at risk of fuel poverty, through the installation of measures such as insulation and new heating systems in their homes. It has been operating since September 2015 and has helped more than 52,000 households throughout Scotland.
In 2025 to 2026, WHS supported 6,270 households with 15,109 heating, insulation and renewable measures installed.
Since 2019, we have seen a steady increase in the number of clean heat installations, the majority of which have been heat pumps and new electric storage heating. The programme also continues to install new gas boilers. This is because gas boilers can currently be cheaper to run due to high electricity costs and are able to be installed more quickly – making such installations wholly compatible with the scheme’s focus on helping those in fuel poverty. We are now seeing higher levels of clean heating being installed, and are currently reviewing processes to see where action can be taken to further encourage clean heating uptake and maximise the climate benefits of the scheme.
| 2023 to 2024[31] | 2024 to 2025 | 2025 to 2026 | |
|---|---|---|---|
| Energy efficiency | 3,608 | 12,802 | 12,034 |
| Of which, insulation | 2,264 | 7,839 | 8,013 |
| Of which, gas boiler (condensing) | 1,343 | 4,958 | 4,016 |
| Of which, other[32] | 1 | 5 | 5 |
| Other renewables/clean heat | 471 | 1,716 | 2,509 |
| Of which, ZDEH/biomass[33] | 155 | 754 | 1,102 |
| Of which, solar PV/battery storage | 313 | 951 | 1,369 |
| Of which, other[34] | 3 | 11 | 18 |
Area Based Schemes (ABS)
Our ABS aim to reduce fuel poverty by enabling local authorities to design and deliver energy efficiency projects in fuel poor areas.
In the last reported financial year (2024 to 2025), ABS projects helped reduce energy bills for just under 5,000 households living in or at risk of fuel poverty. The scheme installed 3,854 energy efficiency measures in 2024-25, as well as 933 clean heat and renewables measures (634 of which were solar PV). The programme has delivered just over 9,000 renewables and clean heating systems since 2019.
| 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | |
|---|---|---|---|---|---|---|
| Energy efficiency | 7,758 | 5,745 | 4,288 | 4,571 | 3,559 | 3,854 |
| Of which, insulation | 7,737 | 5,715 | 4,287 | 4,497 | 3,515 | 2921 |
| Of which, gas boiler | 21 | 30 | 1 | 0 | 0 | 0 |
| Other renewables/clean heat | 162 | 340 | 2,973 | 2,460 | 2,375 | 933 |
| Of which, ZDEH[35]/biomass | 98 | 107 | 151 | 207 | 122 | 131 |
| Of which, solar PV | 0 | 144 | 583 | 2,253 | 1,279 | 634 |
| Of which battery storage | - | - | - | - | 914 | 138 |
| Of which, heating controls | 64 | 89 | 2,239 | 74 | 44 | 30 |
Private Rented Sector Landlord Loan Scheme
The Private Rented Sector (PRS) Landlord Loan Scheme provides private registered landlords with interest free and low interest loan funding to enable them to invest in improving the energy efficiency of their properties and install clean heating systems. Since its launch in 2020, the scheme has supported landlords to install over 400 energy efficiency and clean heating/renewable measures.
The ‘other energy efficiency’ category for 2024 to 2025 includes gas boilers and connections (which are no longer eligible for funding as part of the scheme), heating controls and warm-air units. 2025 to 2026 figures for this category were made up of double, triple or secondary glazing as well as insulated doors. The clean heating systems installed consist of high heat retention electric storage heaters and air source heat pumps.
Uptake of the PRS Landlord Loan Scheme remains low in recent years, likely reflecting uncertainty around the introduction of Private Rented Sector Minimum Energy Efficiency Standards (PRS MEES).
| 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | |
|---|---|---|---|---|
| Energy efficiency | 51 | 116 | 78 | 59 |
| Other renewables/clean heat | 5 | 13 | 7 | 22 |
| 2024 to 2025 | 2025 to 2026 | |
|---|---|---|
| Energy efficiency | 13 | 46 |
| Of which, insulation | 11 | 28 |
| Of which, other energy efficiency | 2 | 18 |
| Other renewables/clean heat | 17 | 21 |
| Of which, ZDEH/biomass | 10 | 18 |
| Of which, solar PV | 4 | 2 |
| Of which, battery storage | 3 | 1 |
Social Housing Net Zero Heat Fund
The Social Housing Net Zero Heat Fund (SHNZHF) provides grant funding to Registered Social Landlords and Local Authorities to support the installation of clean heating and energy efficiency measures in existing social housing stock.
In the 2025 to 2026 funding round (Checkpoint 10), the scheme received 62 applications – the highest of any single Checkpoint since launching the scheme in 2021 – of which 26 were taken forward for funding. Please see annex A for detail on the data for the fund.
| 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | |
|---|---|---|---|---|---|
| Energy efficiency | 0 | 1569 | 10054 | 2107 | 1651 |
| Of which, insulation | 0 | 1136 | 1008 | 1300 | 776 |
| Of which, windows/glazing | 0 | 93 | 178 | 408 | 192 |
| Of which, doors | 0 | 0 | 30 | 145 | 91 |
| Of which, other measures | 0 | 340 | 8838 | 254 | 592 |
| Other renewables/clean heat | 0 | 1570 | 2377 | 1228 | 640 |
| Of which, ZDEH | 0 | 611 | 1086 | 452 | 484 |
| Of which, solar PV | 0 | 683 | 856 | 410 | 82 |
| Of which, battery storage | 0 | 276 | 435 | 366 | 74 |
SME loan and cashback scheme
This scheme supports Scottish organisations to install energy efficient and renewable technologies to cut carbon emissions and reduce energy costs, thereby increasing economic competitiveness. It provides unsecured, interest free loans of up to £100,000 to SMEs, not-for-profit-organisations and charities. A cashback grant has also been available since 2018.
| 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | |
|---|---|---|---|---|---|---|---|
| Energy efficiency | 219 | 213 | 346 | 279 | 260 | 464 | 573 |
| Of which, insulation | 23 | 35 | 71 | 76 | 51 | 130 | 141 |
| Of which, gas boiler | 48 | 28 | 30 | 10 | 3 | 9 | 4 |
| Of which, heat meters | 4 | 2 | 7 | 2 | 7 | 6 | 1 |
| Of which, other measures[37] | 14 | 148 | 238 | 191 | 199 | 319 | 427 |
| Other renewables/ clean heat | 21 | 26 | 113 | 150 | 155 | 75 | 80 |
| Of which, ZDEH/biomass[38] | 13 | 13 | 93 | 92 | 62 | 58 | 67 |
| Of which, solar PV/wind turbine | 8 | 13 | 19 | 46 | 70 | 9 | 2 |
| Of which, battery storage | 0 | 0 | 1 | 7 | 20 | 6 | 9 |
| Of which, solar thermal | 0 | 0 | 0 | 5 | 3 | 2 | 2 |
Scottish Green Public Sector Estate Decarbonisation Scheme
The Scottish Green Public Sector Estate Decarbonisation Scheme (GPSEDS) funding was committed for 2021 to 2026 parliamentary term as part of the Heat in Building Strategy. This commitment in its previous form concluded in March 2026[39].
Funding capacity for the Scottish Central Government Energy Efficiency Grant Scheme was reached in financial year 2024 to 2025 and the scheme has now closed.
We are currently progressing the procurement of Scotland’s Public Sector Heat Decarbonisation Framework (SPSHD), to replace the Non-Domestic Energy Efficiency Framework (NDEEF).
The re-procurement of the PSU Framework has now been completed, with Mott MacDonald appointed in February 2026. The role of the PSU is to help organisations develop procurement documentation and issue tenders for available services, and support framework users through the delivery of their retrofit projects. To encourage uptake of the Framework, £50,000 of support funding will be made available to organisations that engage with the PSU and utilise the SPSHD Framework.
The Scottish Public Sector Energy Efficiency Loan Scheme offers zero-interest loans of up to 75% of the total project value to support spend-to-save energy efficiency improvement projects that generate financial and carbon savings for public bodies, supporting them to achieve their net zero targets.
The Scotland Recycling Fund, as part of the loan scheme, is a ring-fenced fund held by the eligible public sector body.
The loan and recycling fund programmes have been the primary funding schemes available to public bodies with borrowing powers in Scotland since 2008, successfully delivering over 1,200 projects. More than £89 million has been invested to date which is forecasted to save the public sector more than £262 million over the lifetime of the projects and save over 50,000 tCO2e annually.
| 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | |
|---|---|---|---|---|---|
| Energy efficiency/conservation measures | 78 | 52 | 71 | 124 | 25 |
| Other renewables/clean heat | 11 | 5 | 8 | 6 | 8 |
| Of which, clean heating/biomass | 3 | 1 | 5 | 0 | 0 |
| Of which, solar/solar thermal/wind turbine | 8 | 4 | 3 | 6 | 12 |
Scotland’s Public Sector Heat Decarbonisation Fund provides capital support to public sector organisations to undertake whole building approach projects that decarbonise heat and improve the energy efficiency of their buildings.
Phase 3 of the Fund launched in March 2026 and extended eligibility to include Scottish Central Government organisations.
| 2024 to 2025 | 2025 to 2026 | |
|---|---|---|
| Energy efficiency/conservation measures | 55 | 158 |
| Other renewables/clean heat | 18 | 22 |
| Of which, ZDEH | 11 | 12 |
| Of which, solar PV/solar thermal/wind turbine | 7 | 10 |
4.1.2. Type: heat network support
4.1.2A Indicator: new pre-capital support projects in previous year
Data source: data collected directly by Scottish Government and delivery partners via the Heat Network Support Unit (HNSU)
Unit: number of projects
Most recent data:
- number of new pre-capital support projects in previous year (2025): 6
| Year | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Number of projects | 11 | 14 | 14 | 6 | 9 |
Commentary: See indicator 4.1.2B.
4.1.2B Indicator: new capital support projects in previous year
Data source: data collected directly by Scottish Government and delivery partners via SHNF and LCITP[40]
Unit: number of projects
Most recent data:
- number of new capital support projects in previous year (2025): 2
| Year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Number of projects | 1 | 3 | 2 | 4 | 3 | 0 | 2 | 0 |
Commentary (for indicators 4.1.2A and 4.1.2B):
Since 2022, the HNSU has formally supported 64 pre-capital projects in 17 local authority areas through advice, guidance and funding, with the Scottish Government committing approximately £2.5 million of financial support. The HNSU has supported 9 new projects in 2026 as of August 2026 and any further awards through the HNSU will be reported within the Heat Network Projects Reports. Our heat networks project reports are published quarterly[41] and provide more detail on all supported projects.
The HNSU addresses challenges in the pre-capital stages of heat network development and to build capacity across the public sector to deliver successful projects.
The SHNF makes capital grant funding available to public and private sector organisations to support the roll out of zero emission heat networks across Scotland. To date (as of July 2026), SHNF has awarded approximately £14 million to six heat network projects in Scotland.
4.1.3. Type: Scottish Government investment
4.1.3A Indicator: Scottish Government funding for the previous year (actual spend) on all schemes that support installation of energy efficiency measures and clean heating systems across domestic and non-domestic properties and the development of heat networks. This will be broken down by scheme and identifies both capital and revenue funding.
Data source: Scottish Government delivery schemes
Unit: £
Most recent data:
- Scottish Government funding for financial year 2025-26 (actual spend): net £213.5m combined Capital and Financial Transactions investment.
| Year | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
|---|---|---|---|
| SHNF and LCITP legacy funding capital | 16,000 | 2,600 | 4,400 |
| SHNZHF capital | 29,500 | 19,000 | 17,800 |
| ABS | 58,300 | 59,700 | 55,000 |
| WHS | 59,700 | 90,400 | 90,600 |
| HES grant and loan | 62,300 | 39,900 | 25,200 |
| SME loan and cashback | 8,500 | 6,300 | 3,900 |
| Public Sector Decarbonisation | 27,700 | 29,100 | 16,000 |
| Departure from ERDF schemes | 9,000 | 0 | 0 |
| Income from closed schemes and additional income from financial transactions not recycled | (54,300) | (3,700) | (2,500) |
| Delivery Scheme Resource Spend | 20,500 | 19,400 | 18,100 |
| Other Resource spend | 7,900 | 12,700 | 10,100 |
| Total (Resource)[43] | 28,400 | 32,500 | 28,200 |
| Total (Capital)[44] | 213,200 | 247,300 | 213,500 |
| Total Investment | 241,600 | 279,800 | 241,700 |
Commentary:
These figures represent the actual expenditure incurred by Scottish Government in the previous financial year as published. For this indicator, the baseline data will be financial year 2023 to 2024. Please see annex A for detail on the data used here.
The total funding paid out through Scottish Government heating and energy efficiency loan schemes also includes recycled funding repaid from historic loans to fund new commitments. Further detail relating to total funding paid out through the Home Energy Scotland Grant and Loan can be found at: Home Energy Scotland Grant and Loan Scheme: awards - gov.scot.
We invested over £213 million in capital and loan funding through 2025-26 and over £18 million of resource for funding advice services. The balance of the resource funding was allocated to Heat in Buildings policy and regulation.
Through this investment, over 6,000 households living in or at risk of fuel poverty were supported to make their homes warmer through the WHS programme. This included investment in renewables and clean heating to help deliver a just transition and healthier homes. Data is not yet available on the number of households supported through the Area Based Schemes and Social Housing Net Zero Fund for projects in financial year 2025 to 2026.
Over 4,200 homeowners applied for funding through the HES Grant and Loans scheme to undertake energy efficiency works and/or install clean heating systems, resulting in 3,790 funding offers.
Over 6,000 domestic clean heat installations funded this year through our schemes and around 405 homes will be connected to heat networks using clean heat sources as a result of funding awarded in 2025 to 2026.
4.1.4. Type: advice services
4.1.4A Indicator: number of unique households supported by HES advice service
Data source: Scottish Government scheme data
Unit: number of unique households
Most recent data:
| Year | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
|---|---|---|---|---|---|---|---|
| Number supported | 92,681 | 90,468 | 114,392 | 138,347 | 128,791 | 95,781 | 87,762 |
Commentary: see p 45 for commentary on indicator 4.1.4 A to C.
4.1.4B Indicator: number of SMEs provided in-depth support by Business Energy Scotland (BES) advice service and number of energy assessment reports completed by BES.
Data source: Scottish Government advice service
Unit: number of SMEs/number of energy assessment reports
Most recent data: 2025 to 2026
| Year | 2020 to 2021 | 2021 to 2022 | 2022 to 2023[45] | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
|---|---|---|---|---|---|---|
| Number of SMEs provided in-depth support | 782 | No data[46] | 1,055 | 1,786 | 1,501 | 1,312 |
| Number energy assessments completed | 988 | 1,144 | 849 | 1,384 | 1,145 | 1,014 |
Commentary: see p 45 for commentary on indicator 4.1.4 A to C.
4.1.4C Indicator: advice and referral services investment
Data source: Scottish Government scheme data
Unit: £
Most recent data: 2025-26
| Year | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
|---|---|---|---|---|---|---|---|
| HES | 8,329 | 8,134 | 9,379 | 12,316 | 13,548 | 12,678 | 12,180 |
| BES | No data | No data | No data | 2,150 | 3,070 | 2,980 | 2,400 |
Commentary (for indicators 4.1.4A, 4.1.4B, 4.1.4C):
HES supported just under 88,000 households in 2025 to 2026 which is less than the number supported in 2024 to 2025. HES capacity was increased to support households through the height of the cost of living and energy crises. Since then, demand for the service has reduced although it remains higher than the baseline.
The reduction in demand may be linked to Scottish Government spending controls on marketing and communications activity, and reduced promotional activity for HES. As a demand led service, this is likely to have contributed to lower levels of demand.
From the launch of the new scheme in October 2023 until March 2026, around 30,000 households have been referred through to our WHS fuel poverty support programme which provides funding to eligible households to help make their homes warmer and easier to heat.
In 2025 to 2026 BES provided in-depth support to over 1,300 Scottish SMEs and light-touch support to more than 21,000 on implementing energy efficiency and heat decarbonisation measures. The advice service also produced more than 1,014 bespoke energy assessments which highlight actions a Scottish SME can take to make energy, carbon and cost savings.
4.2. Activities: other policy and delivery work
4.2.1 Indicator: qualitative update on developments over the last year
Data source: Scottish Government officials
Unit: N/A
Most recent update/commentary:
Please see page 7 of the report for the update.
Contact
Email: heatinbuildings@gov.scot