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 6 of the SHNZHF
Project Title: High Heat Retention Storage Heaters, PV Arrays and Energy Storage to 4no. Sheltered Housing Complexes
Project Organisation: Angus Council
Technology Type(s): HHRSH, Solar PV and Battery Storage.
Location(s): Montrose, Forfar and Arborath, Angus Council
Grant Value: £783,851
Completion Date: March 2024
Project Headline: Clean heating and microgeneration to 106 homes across Angus
Project Description:
This project installed clean heating and microgeneration to 106 properties across 4 sheltered housing complexes. The project took place across Angus, in Montrose, Forfar and Arbroath.
The measures installed were HHRSH, solar PV and battery storage technology so that surplus energy generated by the PV arrays will be stored. This directly reduces grid demand and allows for energy harvesting and use on site when no energy is being produced by the PV arrays.
The project aimed to improve the EPCs of the properties from band D to band B. The project was designed to reduce tenants fuel bills and improve thermal comfort.
Project Title: Danderhall Net Zero Upgrades, Phase 1
Project Organisation: Midlothian Council
Technology Type(s): EWI, CWI and IWI
Location(s): Danderhall, Midlothian Council
Grant Value: £533,688
Completion Date: June 2024
Project Headline: Project delivered insulation upgrades as part of a whole house retrofit to 50 properties in the Danderhall area
Project Description:
Properties selected for this phase of the project received EWI, CWI or IWI depending on the property archetype and existing insulation measures in place. Properties also received other measures not funded by this grant including roof insulation and high efficiency windows and doors, depending on the property itself.
This whole house retrofit delivery approach was designed to ensure a wide range of measures were implemented alongside each other to reduce the home energy consumption and to improve the fabric of the home before future clean heating solutions. Now that the fabric of the building has been addressed, it has readied these properties for the potential connection to a future clean heating system, such as a district heating network.
This is Phase 1 of a two-part projects, Phase 2 was awarded in financial year 24/25.
Project Title: East Ayrshire Deep Retrofit Pathfinder
Project Organisation: East Ayrshire Council
Technology Type(s): PAS 2035 principles, EnerPhit retrofit and LETI Whole House Retrofit - including a mix of ASHP, HHRSHs, Solar PV, Battery Storage, Thermal Storage, EWI, CWI, UFI, RI
Location(s): Darvel, Kilmarnock and Rankinston, East Ayrshire Council
Grant Value: £534,976
Completion Date: March 2025
Project Headline: This ‘Pathfinder’ Project comprises of three separate approaches to deliver whole house retrofit in a single phase of works and to monitor outcomes
Project Description:
This project involves the following three strands:
Strand 1 – PAS 2035
Six flats in Kilmarnock have been identified to benefit from a whole house retrofit under the principles of PAS 2035 to minimise space heat demand and emissions. The flats are currently heated with mains gas boiler systems. Measures to be fitted include a mix of ASHPs, EWI, floor insulation, insulated roofing, solar PV, domestic hot water storage tank, battery storage and high retention storage heaters, where required.
Strand 2 – LETI
Eight homes (a mix of flats and houses) in Rankinston have been identified to benefit from a LETI whole house retrofit. Rankinston is an off-gas area with a mix of old electric storage heaters, of oil and solid fuel. Measure to be fitted include a mix of EWI or CWI (as appropriate), floor insulation, solar PV, solar thermal, domestic hot water storage tank, battery storage and ASHPs.
Strand 3 – EnerPhit
Four void flats in Darvel have been identified as ideal candidates for a retrofit to EnerPhit standard. The flats currently have gas central heating systems which will be replaced by ASHP alongside deep fabric improvements including insulation measures and microgeneration.
Monitoring
In all three areas, monitoring equipment will be installed, and the building performance will be monitored for a period of three years. East Ayrshire Council will not only compare pre and post install data to evaluate the effectiveness of the system installed but also compare the three approaches in terms of cost, effectiveness and practicality and deliverability for roll out on a wider scale.
Project Title: North Heathery Park Heat Pump Retrofit
Project Organisation: Hjaltland Housing Association
Technology Type(s): ASHP
Location(s): Gulberwick, Shetland Islands Council
Grant Value: £52,245.93
Completion Date: May 2023
Project Headline: This small scale project installed Air Source Heat Pumps and associated radiators to 8 properties in Gulberwick on the Shetland Islands
Project Description:
The properties included a mix of detached and semi-detached dwellings that were originally heated by inefficient and expensive electric boilers with immersion heaters. Tenants had reported the high cost of their expensive heating systems and supported the change to a more affordable, energy efficient heating system.
The project was designed to assist Hjaltland Housing Association with increasing the energy performance of these properties and make a significant social impact on tenants by alleviating fuel poverty by reducing energy bills through the installation of clean, efficient heating systems.
Meter readings were taken when the heating systems were changed so that the performance of the new heating systems can be monitored, and fuel bills compared. Tenants feedback will also be used to monitor the success of the project and inform future potential projects.
Project Title: Kingdom Fabric First Project
Project Organisation: Kingdom Housing Association
Technology Type(s): EWI, IWI, Roof Insulation, High Efficiency Windows and Doors, UFI
Location(s): Perth, Perth & Kinross Council
Grant Value: £1,144,370
Completion Date: April 2024
Project Headline: This project delivered Whole House Retrofit “Fabric First” measures to up to 86 social rented properties in Perth
Project Description:
The project involved properties receiving a full range of insulation measures including external wall insulation and or internal wall insulation where appropriate, roof insulation, high efficiency windows and doors and underfloor insulation. Project utilised whole house retrofit to ensure a wide range of measures were implemented together to reduce the tenant’s energy needs considerably, while also improving the fabric of the home and reducing energy bills, before a clean heating solution is considered in the future.
Properties will continue to be monitored to demonstrate the impact of the measures, including energy consumption data, technical monitoring and pre and post comparative analysis.
Project Title: High St / Russell St Area Regeneration
Project Organisation: Argyll Community Housing Association
Technology Type(s): Communal ASHP, Solar PV, Battery Storage, EWI, CWI, URI, LTIU, Triple Glazed Windows and Doors
Location(s): Rothesay, Isle of Bute, Argyll & Bute Council
Grant Value: £1,337,994.22
Completion Date: July 2024
Project Headline: Project enabled the regeneration of an area in Rothesay on the Isle of Bute to transform the energy efficiency and thermal performance of 3 buildings containing 20 social rented properties
Project Description:
Argyll Community Housing Association (ACHA) undertook this project to renovate three housing blocks, containing 20 properties in total with 9 void properties in Rothesay. This project aimed to change the perception of the blocks and the area, thus making the energy efficiency upgrades part of a wider area regeneration. The energy efficiency works improved the thermal performance of the buildings, upgraded the external environment and provided an exemplar within ACHA’s housing stock.
The SHNZHF funded elements of the overall project included the following: ASHP, solar PV, battery storage, EWI, CWI, UFI, LTUI, triple glazing and external doors.
The project was envisioned to act as a catalyst for positive change and regeneration to this part of Rothesay and complemented a wider external wall insulation program.
Project Title: New Scone Sheltered Housing Heating Upgrade
Project Organisation: Hanover Housing Association
Technology Type(s): HHRSH, Solar PV, Battery Storage, EWI
Location(s): Scone, Perth & Kinross Council
Grant Value: £117,512
Completion Date: March 2024
Project Headline: This project involved energy efficiency upgrades to 25 social tenanted bungalows with very low EPC ratings due to lack of insulation and inefficient storage heaters
Project Description:
The project installed high heat retention storage heaters with battery storage and solar PV, alongside EWI and roof replacement. The social housing tenants in these properties are vulnerable elderly people in a rural location largely in fuel poverty, and the project provided a micro-renewable based solution for these tenants. The provision of solar PV and battery storage has the potential to provide a large portion of self-consumption for these tenants.
Hanover Housing Association previously subsidised the heating costs of these tenants due to the very poor performance of the building and the energy efficient approach was designed to dramatically reduce heating bills for tenants and contribute to alleviating fuel poverty.
The project aimed to provide a model which is sustainable and cost effective for rollout throughout Hanover Housing Association’s housing stock in Scotland.
Project Title: Prospecthill Cladding Project
Project Organisation: River Clyde Homes
Technology Type(s): EWI, Triple Glazed Windows
Location(s): Greenock, Inverclyde Council
Grant Value: £1,647,535
Completion Date: January 2025
Project Headline: This project involves installing a complete rainscreen cladding system incorporating external insulation and new triple glazed windows to improve 90 properties thermal efficiency
Project Description:
The works funded via the SHNZHF grant include the external insulation and new triple glazed windows to Prospecthill, a multi-story block in Greenock containing 90 flats. The project aims to achieve the AECB/LET Retrofit standard and achieve an energy demand of 40Kwh/pm2/pa for each property. The properties are currently heated by a biomass district heating scheme.
The project is envisioned to be the first of its kind within social housing in Scotland and learnings from the project will be offered to the sector more widely. The project aims to remove poor energy performance which is a driver for fuel poverty, aiming to lift the tenants out of fuel poverty, improve thermal comfort and reduce the properties carbon emissions.
Monitoring of the property will include monitoring of heat, temperature, Co2 and humidity. Combined these indicators will provide information on the improvements to tenants and support further learnings from the project.
Project Title: Connected Response - Installation of "Connected Response" devices installed to control space and water heating
Project Organisation: Wheatley Group
Technology Type(s): Connected Response – Smart Storage Heater Controls
Location(s): Glasgow, Glasgow City
Grant Value: £6,162,500
Completion Date: March 2024
Project Headline: Energy efficiency measures fitted to over 5,000 homes across Glasgow
Project Description:
The project's aim was to install fabric first energy efficiency measures to 5,800 socially rented properties across Glasgow. The energy efficiency technology used in the project was Connected Response. The Connected Response units are designed to improve the performance and control of electric storage space and water heating for households. The system provides ‘demand side management’ control of storage through programmable timing, internal dwelling temperature sensor and forecast weather compensation; to avoid energy waste, improve household comfort, reduce carbon and mitigate costs.
The project reduced energy consumption and fuel bills for tenants as well as increased user controllability and thermal comfort of their home.
Project Title: Net Zero Homes - Whole House Retrofit of Low Efficiency and High-Carbon Intensity Homes
Project Organisation: Wheatley Group
Technology Type(s): ASHP, Solar PV, Battery Storage
Location(s): Multiple locations across Dumfries & Galloway Council
Grant Value: £11,100,000
Completion Date: March 2024
Project Headline: Project involved a whole house retrofit to 250 low efficiency and high carbon intensity homes across Dumfries and Galloway
Project Description:
Properties were previously heated with oil, coal, or inefficient electric storage heaters. The measures installed varied according to the property and existing heating solution in place and consisted of a mixture of the following technologies: EWI, ASHPs, solar PV, battery storage and Connected Response technology.
The project aimed to improve the energy efficiency of properties and provide tenants savings on their fuel bills while reducing the energy demand of properties.
This formed Phase 1 of a project with Phase 2 continuing into financial year 2024/25.
Project Title: Pre 1919 - Tenements - Retrofit up to 60 pre-1919 Sandstone Tenement Flats with a view to achieving EPC B rating
Project Organisation: Wheatley Group
Technology Type(s): HHRSH, Double Glazing, IWI, RI, UFI
Location(s): Edinburgh, Edinburgh City Council
Grant Value: £1,024,800
Completion Date: March 2024
Project Headline: Project involved retrofitting 30 void pre-1919 tenement buildings to achieve an EPC ‘B’ rating using combined measures
Project Description:
This project targeted void properties to allow a deep retrofit compared to when tenants are in place.
The measures installed varied according to the individual property and existing heating solution in place with measures including:
- Improvement of existing windows with double glazing
- Improvement and treatment to walls/roof/floor with insulation
- Deployment of air tightness measures
- Installation of an appropriate clean heating system, primarily high heat retention storage heaters
This project aimed to identify a method for retrofitting pre-1919 tenements and allow these learnings to be deployed more widely.
Phase 2 of this project was awarded in financial year 2024/25 with roll out to more properties in Edinburgh and Glasgow City.