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Social Housing Net Zero Fund: progress reports - February 2026

The Social Housing Net Zero Heat Fund offers capital grant funding to support social housing landlords in Scotland to install clean heating systems and energy efficiency measures across their existing housing stock.


Projects Funded Under Checkpoint 8 of the SHNZHF

Project Title: Smith Street Way Pilot

Project Organisation: Loreburn Housing Association

Technology Type(s): ASHP, Solar PV, Battery Storage, Triple Glazed Windows, Door Upgrades, Loft and Ceiling Insulation, Mechanical Ventilation Heat Recovery

Location(s): Beattock, Dumfries and Galloway Council

Grant Value: £402,107.19

Completion Date: March 2024

Project Headline: Project involved retrofitting 4 properties using different approaches to EPC Band B to evaluate and compare the measures involved

Project Description:

This pilot project focused on achieving the best value for money in terms of retrofit measures with an aim to produce a viable strategy for Loreburn Housing Association’s entire building stock with timber frame archetypes.

This involved retrofitting 2 properties to an EPC Band B satisfying the requirements of EESSH2 (the previous Energy Efficiency Standard for Social Housing Providers) and taking 2 properties to the AECB Carbon Lite standard, also to attain an EPC Band B. The works were carried out on two semi-detached houses and two semi-detached bungalows. The project aimed to also reduce the energy demand of properties and reduce tenants’ energy bills.

The measures to achieve EESSH2 involved ASHPs, triple glazed windows and upgraded doors, solar PV, battery storage, loft and ceiling insulation and improved air tightness. The measures to achieve AECB standard included ASHPs with mechanical ventilation heat recovery, internal wall insulation, triple glazed windows and upgraded doors, solar PV and battery storage and improved air tightness.

The project included monitoring via environmental sensors to collate data of temperature, humidity and CO2. The monitoring is continuing following the successful completion of the project and will also be used to identify tenants’ experience of the technology and upgrades.

Project Title: Hawdene Zero-Emission Heating and Solar PV Energy Efficiency Project

Project Organisation: Eildon Housing Association

Technology Type(s): ASHP, Solar PV and Battery Storage

Location(s): Broughton, Scottish Borders Council

Grant Value: £521,021

Completion Date: March 2024

Project Headline: Project involved the installation of ASHP, solar PV and battery storage into 31 properties, primarily inhabited by elderly tenants experiencing fuel poverty

Project Description:

All 31 properties benefited from the installation of these technologies which replaced inefficient electric storage heaters that were contributing to fuel poverty and poor carbon emissions. The tenants were primarily elderly in a rural area, experiencing fuel poverty.

The properties already had two types of insulation installed: cavity wall insulation and 270mm of loft insulation which helped to mitigate the transmission of heat through the walls of the property and through the roof. The ASHP and solar PV were effectively complimented by the battery storage to maximise fuel bill savings and provide an estimated 82% decrease in annual carbon emissions.

The project emphasised a tenant centered approach, incorporating an Affordable Warmth and Heat Impact Evaluation Assessment and intensive consumer engagement. Eildon HA will continue to monitor and actively respond to the specific needs and behaviours of the tenant’s heat usage, district heating effects and behavioural responses to tariff changes.

Project Title: Houston Place Whole House Retrofit

Project Organisation: Renfrewshire Council

Technology Type(s): ASHP, Solar PV, EWI, Double Glazing, External Doors, LITU, MVHR and Air Tightness Measures

Location(s): Johnstone, Renfrewshire Council

Grant Value: £254,015

Completion Date: July 2025

Project Headline: Whole House AECB Carbonlife Retrofit to 8 terraced properties in Johnstone, Renfrewshire

Project Description:

This project will take a whole house retrofit approach to 8 terraced properties in Johnstone, Renfrewshire. It will install lean heating and energy efficiency measures to the aim of the AECB Carbonlite retrofit standard. All properties currently have a combi gas boiler and an EPC of D.

With this funding, each property will receive an ASHP, solar PV and diverter which will ensure that no energy from the solar PV will be wasted, and instead will heat the water cylinder. Additionally, every property will receive EWI, MVHR, double glazing, external doors, air tightness measures, and loft insulation top up.

The project will bring the properties from EPC band D to A and will save tenants up to an estimated £400 per annum on their fuel bills.

Project Title: Cluny Court Net Zero Upgrades

Project Organisation: Cairn Housing Group

Technology Type(s): HHRSH and Solar PV

Location(s): Blairegowrie, Perth and Kinross Council

Grant Value: £333,598

Completion Date: March 2025

Project Headline: Clean Heating and reduced fuel bills for 35 homes in Blairgowrie

Project Description:

This project will install clean heating to 35 properties in Cluny Court, Blairgowrie. The archetypes of the properties are varied, there are 6 terraced bungalows and 29 flats of varying size. The properties have previously benefited from Energy Efficiency measures such as double glazing, new external doors, cavity wall insulation and loft insulation where applicable.

This project will upgrade the existing inefficient storage heaters with new high heat retention Thermastore storage heaters with an improved user interface for improved user control. In addition, the properties received solar PV.

The project aims to bring all properties to an EPC band B and will save the tenants and estimated £1000 per annum on energy bills.

Project Title: Murkle Terrace and Towerhill Road Net Zero Upgrades

Project Organisation: Cairn Housing Group

Technology Type(s): HHRSH and Solar PV

Location(s): Thurso, Highland Council

Grant Value: £397,307

Completion Date: March 2025

Project Headline: Clean Heating and reduced fuel bills for 35 homes in Thurso

Project Description:

This project will install clean heating to 35 properties in Murkle Terrace, Thurso in the Scottish Highlands. The properties are flat of varying size, arranged in blocks of 6. They have previously benefited from energy efficiency measures such as double glazing, external wall insulation and loft insulation where applicable.

This project will upgrade the existing inefficient storage heaters with new high heat retention Thermastore storage heaters with an improved user interface for the tenants. They will also receive solar PV. The project aims to bring all properties to an EPC band B and will save the tenants and estimated £1000 per annum on energy bills.

Project Title: Net Zero for Hard to Treat Homes

Project Organisation: Aberdeenshire Council

Technology Type(s): MVHR, IWI, FI, Air Tightness Measures, Where appropriate to the archetype: LITU, Double Glazing, HHRSH, RIRI and Solar PV

Location(s): Multiple Locations across Aberdeenshire Council – Aberchider, Bridge of Marnoch, Fraserburgh, Huntly, Inverurie, Peterhead and Stonehaven

Grant Value: £2,442,129

Completion Date: June 2025

Project Headline: Whole house retrofit to 108 void hard to treat properties in Aberdeenshire.

Project Description:

This project will take a whole house retrofit approach to 108 void properties of mixed archetype in Aberdeenshire. These will be a mix of Urban, Rural and Remote Rural. Most, if not all, of the properties have a stone construction, making External and Cavity Wall Insulation unfeasible. Internal Wall Insulation is therefore the best way forward but requires the property to be empty. Additionally, each property will along with this, Mechanical Ventilation with Heat Recovery, Floor Insulation and Airtightness work will make up the core work present in all properties.

Following, depending on the archetype, there are a number of other measures which will be installed; Loft Insulation Top-Up, Room-in-the-Roof Insulation, Double or Secondary glazing and High Heat Retention Storage Heaters. Where High Heat Retention Storage Heaters are installed, Solar PV and Solar diverters.

This project aims to bring the EPC of these properties from an average D to A. It will also save tenants up to an estimated £2000 per annum on their fuel bills.

Project Title: Hebridean ASHP 16

Project Organisation: Hebridean Housing Partnership

Technology Type(s): ASHP

Location(s): Stornoway, Isle of Lewis, Comhairle nan Eilean siar

Grant Value: £150,000

Completion Date: March 2024

Project Headline: Project involved replacing 16 inefficient electric heating systems with new ASHP systems, with system control allowing tenants more control over electricity use

Project Description:

All properties are block cavity construction bungalows in Stornoway on the isle of Lewis. Hebridean Housing Partnership have been installing ASHP systems since 2012 and have vast experience in the utilisation of these in their social housing stock. The houses already had bead cavity insulation, full double glazing and 250mm plus of loft insulation installed.

Over the years HHP have simplified the installation and use of the system to ensure tenants only require minimal input using the provided wireless controller to increase or decrease temperature at a given point in time with the system reverting to set temperatures at the end of each day.

Each system control allows the tenant to see the exact amount of electricity used per year, per month and per week for both heating and hot water. This allows tenants to budget in advance which is beneficial for those on prepayment meters. All heat pumps will be fitted with Wi-Fi adapters to allow for weekly, monthly and yearly monitoring of costs by tenant and by HHP with consent.

This project is a continuation of a similar project funded by Social Housing Net Zero Heat Fund the previous financial year.

Project Title: Net Zero Fund October 2023

Project Organisation: Orkney Housing Association

Technology Type(s): Triple Glazed Windows, High Insulated Doors, LITU and Hot Water Cylinder Jackets

Location(s): Kirkwall, St Margarets Hope, Orkney Islands Council

Grant Value: £77,290

Completion Date: March 2024

Project Headline: Project involved energy efficiency upgrades to 19 properties across the Orkney Islands

Project Description:

The 19 properties were located across two of Orkney Housing Association’s schemes that included some of the most remote areas of their estate. The properties are a mix of housing types and were completed in the late 1980s/early 1990s and are of an age and time of construction where the fabric components being addressed are inefficient in terms of energy performance.

The upgraded fabric components included high-energy efficiency triple glazed windows, replacement high insulated doors, loft insulation top ups and hot water cylinder jackets. These measures aimed to greatly improve the building performance and the tenant’s experience of living in the properties.

All of these works aimed to efficiently retain heat and significantly improve the thermal performance of the properties. All tenants were offered a home energy check and visit, supported by Orkney Housing Association’s team, and new EPCs will be produced for each property.

Project Title: Forth ASHPs and LTUs

Project Organisation: Melville Housing Association

Technology Type(s): ASHP and LITU

Location(s): Forth, South Lanarkshire Council

Grant Value: £92,252.10

Completion Date: March 2024

Project Headline: Clean heating and fabric measures installed to 13 homes in South Lanarkshire to tackle fuel poverty

Project Description:

This project comprised of the installation of ASHPs and LITUs across 13 properties in Forth, a rural area in South Lanarkshire. The target addresses were previously heated by inefficient and cost ineffective heating systems – either electric wet or oil – meaning that the installation of zero emission heating systems will result in reduced energy bills for tenants as well as a reduction in carbon emissions.

The properties were specifically selected due to their propensity for fuel poverty. The area is in the most deprived 20% in Scotland, with challenges relating to income and employment.

The properties were already well insulated, with external insulation having been installed through previous programs. As such, they were highly thermally efficient and ideally suited to benefit from zero emissions heating. LTUIs will be installed to ensure the heat demand of the properties is as low as possible prior to the installation of new heating systems.

Project Title: KHA Pleasance Road Renewable Heat

Project Organisation: Kingdom Housing Association

Technology Type(s): ASHP, Solar PV, Battery Storage, Triple Glazed Windows, LITU

Location(s): Dunfermline, Fife Council

Grant Value: £88,696

Completion Date: March 2024

Project Headline: Project involved the installation of ASHPs, solar PV and battery storage to 6 properties in Dunfermline

Project Description:

The properties are all two-bed, two-story terraced houses of timber frame construction constructed in the 1990s. The properties were previously heated by inefficient electric storage heaters which were replaced with ASHP systems alongside solar PV, battery storage, triple glazed windows and loft insulation. The properties are all the same layouts which simplified the installation process and therefore allowing the same measures to be installed in each home.

The installation of the ASHPs, solar PV and batteries provide a renewable and stable energy supply for tenants allowing cost savings on energy bills. Fabric upgrades including the installation of new windows and loft insulation further improved the overall energy efficiency of the building fabric thereby reducing heat loss allowing for optimal performance of a low temperature ASHP heating system.

This project enabled a whole house approach to retrofit providing the most impactful way to provide carbon and cost savings rather than implementing upgrades over a phased approach.

Project Title: Smart Storage Heating Retrofit Project

Project Organisation: Trust Housing Association

Technology Type(s): Connected Response

Location(s): Multiple Councils across Scotland: Argyll and Bute, Dumfries and Galloway, East Dunbartonshire, East Renfrewshire, Fife, Glasgow city, Highland, North Ayrshire, South Ayrshire, East Ayrshire, Scottish Borders, South Lanarkshire, West Dunbartonshire, Western Isles

Grant Value: £244,090

Completion Date: March 2025

Project Headline: Upgrading existing Electric Storage Heaters to improve energy efficiency in 345 homes across Scotland.

Project Description:

The project involves upgrading existing electric storage heaters to improve energy efficiency in 345 homes across Scotland. The project involves installing Connected Response HeatSage technology into each flat which remotely controls the charging of existing heaters using local weather forecasts to determine the most suitable charging times, increasing on colder days and reducing on milder days, moving the charge closer to tenants’ needs. It can also be customised to set specific temperatures in different flats if required to take account of property size, potential solar gain and tenants’ individual health needs. By re-purposing the existing heating and hot water systems and aligning charging with renewable energy the project will turn the existing storage heaters into zero emission systems.

The project has been designed to ensure those most likely to be in or at risk of fuel poverty and living in properties that are the least energy efficient are included. The homes selected for intervention were failing the previous Energy Efficiency Standard for Social Housing (EESSH) and were located within a rural area; resulting in additional travel spend to allow householders to access vital amenities which further exacerbated the difficulties tenants faced in heating their homes.

Project Title: Mill Place, Thankerton: Energy Efficiency Works

Project Organisation: Clydesdale Housing Association

Technology Type(s): ASHP, HHRSH, Solar PV, Battery Storage and Allume Solshare

Location(s): Thankerton, South Lanarkshire Council

Grant Value: £239,475

Completion Date: March 2024

Project Headline: Clean heating and microgeneration installed to 22 homes in Thankerton, South Lanarkshire

Project Description:

This project installed clean heating and micro generation of electricity to 22 properties in Thankerton, South Lanarkshire. The properties were a mix of archetype, both flats and houses, of different sizes. The measures installed depended on the archetype of the properties, which were previously heated with old style storage heaters.

The houses received ASHPs and solar PV with a dual inverter that allowed the storage of the electricity into an installed 3kw battery. On the flatted properties of the development Solar PV with Allume solshare was also installed enabling the sharing of solar energy from a single rooftop solar system amongst multiple dwellings within the same building. This micro generation was coupled with the Elnur Smart high heat retention storage heaters. The smart Elnur solar high heat retention storage heater allows the use of energy from the solar panels to reduce heating costs, when there’s not enough renewable energy production, it uses cheaper off-peak power to charge and top up the demand. The flatted dwellings did not receive a battery installed as the HHRSH acts as a battery. The measures that were installed will achieve up to a 60% saving on the energy costs for the tenants and future proof the assets for any future government driven targets for energy efficiency in social housing.

Contact

Email: netzerosocialhousing@gov.scot

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