Scotland's Heat Network Fund: application guidance

Who can apply

Scotland’s Heat Network Fund (SHNF) is open to organisations seeking to develop and deploy heat networks in Scotland. Applicants could include: 

• enterprises of all sizes 
• community groups 
• registered charities 
• social enterprises/development trusts 
• local authorities  
• public sector organisations 
• registered social landlords 
• energy service companies 
• academic institutions 

Investment from any eligible organisation is allowed provided the project is entirely delivered in Scotland.

All projects must have a UK-based bank account. 

Consortium applications 

Consortium applications - where several organisations apply together as a single group - are eligible for funding under this scheme if all mandatory eligibility and assessment criteria are met. 

When submitting a consortium application, applicants should note the: 

Scope of funding 

SHNF funding can only be used for eligible costs as set out in the 'What you can apply for’ section. Any energy efficiency works required to connect buildings to the heat network beyond the heat interface units within buildings are not eligible under SHNF. If a consortium comprises Registered Social Landlords (RSLs), these may apply to the Social Housing Net Zero Heat Fund (SHNZHF) for support with eligible energy efficiency works, if open to applications at the required time. 

Project cohesion 

Organisations in a consortium must submit a cohesive application clearly outlining the project(s) outputs. Successful consortium applications will typically include individual projects with similar technology types, scale, and financial structure. While design and capacity may vary to reflect individual building requirements, the underlying technology type and delivery approach should be consistent across the various sites.  

Lead applicant and financial responsibility 

A lead applicant must be identified and must be willing to hold the financial risk for the project on behalf of all consortium members. Consortium partners must be able to submit a single, cohesive application that clearly outlines the expected outputs across all sites. 

Geography 

Projects within a consortium do not necessarily need to be located within the same local authority or city, but consortium members must demonstrate effective collaboration and clear arrangements for the distribution and management of funds. 

Email HeatNetworkFund@gov.scot if you have any queries about eligibility requirements.