Scotland's Heat Network Fund: application guidance

Overview

Scotland’s Heat Network Fund (SHNF) offers capital grants to businesses and organisations in the public, private and third sectors to develop heat network projects.

It aims to support the roll-out of zero emission district heat networks and communal heating systems.

SHNF supports:

• new low or zero direct emissions district heat networks or communal heating systems
• the expansion of existing district or communal heating systems where the heat demand of the extension as a minimum is supplied by a low or zero direct emissions heat source
•  the decarbonisation of existing district heat networks or communal heating systems where a zero direct emissions heat source replaces an existing polluting heat source

Who is eligible

Projects must be based in Scotland and:

• contribute to Scotland’s zero direct emissions heat targets
• demonstrate social and economic benefits
• meet the legal definition of a district heat network or communal heat network

Read the eligibility information in full before submitting an expression of interest.

When you can apply

You can submit an expression of interest for funding at any time. If this is successful, you'll be invited to complete a full application form. 

Successful projects must draw down funding in full by March 2026. Projects commissioning after this date must do so within an appropriate timeframe agreed with the Scottish Government.

We cannot provide funding for any costs incurred before a grant offer letter has been agreed and signed.

SHNF was launched in 2022. Read about projects that have already received funding through SHNF.

Heat networks: what they are  

In order to be eligible for Scotland’s Heat Network Fund, projects must meet the definition of a district or communal heat network, as defined by the Heat Networks (Scotland) Act 2021: 

• a ‘district heat network’ is defined as a network where thermal energy is distributed from one or more sources of production to more than one building. 
• a ‘communal heating system’ is a system where thermal energy is distributed from one or more sources of production to one building comprising more than one building unit. 

Under the definitions above, ground source heat pump systems with shared ground arrays would be eligible technologies for the fund.