Scotland's Heat Network Fund: application guidance

About Scotland’s Heat Network Fund  

Scotland’s Heat Network Fund (SHNF) is a £300 million capital grant scheme available to applicants from the public and private sector for projects at capital readiness that can clearly demonstrate a funding gap. Grant will be based on this funding gap, up to a maximum of 50% of the total eligible capital costs. 

Commercialisation support is available for up to 10% of the total capital cost to a maximum of £1 million, subject to budget availability. Enabling support (for work such as project management and consultancy) is available for up to 10% of the total capital cost up to a maximum of £100,000. Projects requiring additional commercialisation and enabling support will be required to submit a request providing detailed information on why additional funding is required.  

Commercialisation and enabling support will be provided on a case-by-case basis and we reserve the right to decline the request if insufficient budget is available within the programme. We can only cover commercialisation and enabling costs for activities directly related to bringing the heat network to the agreed operable state.   

The SHNF cannot cover costs incurred before the date grant offer letter is signed. Grant funding for eligible costs can only be claimed once costs have been incurred and paid by the grantee. SHNF grant funding cannot be provided up-front before costs have been incurred. See the 'What you can apply for' section for more information on eligible and ineligible costs. 

As the SHNF is a capital fund, projects must be capital-ready to be eligible for commercialisation and enabling support.  

Pre-capital development support for heat network projects is offered through the Heat Network Support Unit (NHSU). You can contact the Heat Network Support Unit about pre-captial support via this form.

Timescales 

The fund opened to applications in February 2022 and will remain open to applications until all the funding has been assigned. Grant funding must be fully drawn down by March 2026. Projects can be commissioned after this date if the commissioning date is agreed with the SHNF team.