Scotland's Heat Network Fund: application guidance

Definitions

Additionality: the additional benefit resulting from a SHNF grant being awarded. 

Alternative zero direct emissions heating option: the next best zero direct emissions heating option that could be installed. This is used to check if the heat network proposal is the better option regarding consumer costs and fuel poverty objectives. 

Building unit: part of a building that is designed or altered to be used separately.  

• Domestic: In a domestic context, we define a 'building unit' as self-contained accommodation with its own kitchen, bathroom and heating system (e.g. individual boiler). 

• Non-domestic: non-domestic building units are not used for living accommodation (e.g. shops and offices). Care homes and hotels are non-domestic as residents’ rooms are not self-contained accommodation. 

CAPEX is short for ‘capital expenditure’. 

Communal heating system: a system by which thermal energy is distributed from one or more sources of production to one building comprising more than one building unit.  

• For communal heating projects applying for SHNF funding, buildings must have two or more rateable building units 

• The building can be domestic (e.g. a block of individual flats), non-domestic or mixed use (e.g. a block of flats with shops on ground level) 

Counterfactual: the heating system that will be installed if no grant is offered. This counterfactual is used to calculate the project’s funding gap. This can be the same as the alternative zero direct emissions heating option if the heating technology of the counterfactual is zero direct emissions (e.g. electric heaters or individual heat pumps). For retrofit projects, the counterfactual can be Business as Usual if the heating system is not at or nearing the end of its working life. If it is not feasible for a type of heating system to be installed (for example due to practical limitations of the location or due to local planning rules) then this cannot be considered as the counterfactual.  

Direct emissions heating technology: a heating system that produces greenhouse gas emissions at the point of use.  

District heat network: a network by which thermal energy is distributed from one or more sources of production to more than one building. 

Zero direct emissions heating technology: a heating system that does not produce greenhouse gas emissions at the point of use.