Publication - Advice and guidance

Social Housing Net Zero Heat Fund - call for funding applications - 2021

Last updated: 17 Nov 2021 - see all updates
Published: 11 Aug 2021

Application form and guidance notes for the Social Housing Net Zero Heat Fund 2021 call for applications.

Social Housing Net Zero Heat Fund - call for funding applications - 2021
Overview

We are making £200 million available over the next five years to support social landlords across Scotland to install zero emissions heating systems and energy efficiency measures across their existing stock.

Reducing emissions from our homes and buildings is one of the most important things we can to do help end Scotland’s contribution to climate change. Achieving emissions reductions in buildings will require over one million homes to convert to using zero or low emissions heating systems by 2030.

We must rapidly scale up deployment of zero emissions heating systems, such as heat pumps and heat networks, as set we stated in the draft Heat in Buildings Strategy. The Climate Change (Emissions Reduction Targets)(Scotland) Act 2019 set legally binding targets for us to achieve net zero greenhouse gas emissions by 2045, with interim targets requiring a 75% reduction by 2030, and 90% by 2040.

Our statutory fuel poverty targets are similarly ambitious, requiring that in 2040 no more than 5% of households are fuel poor and no more than 1% are in extreme fuel poverty. It is therefore imperative that, as we take action to cut emissions from Scotland’s homes, we do so in a way that supports and enables the eradication of fuel poverty.

2021 funding invitation

The funding invitation for 2021 has a minimum allocation of £20 million to support social housing landlords across Scotland to use energy-efficient, zero-emissions heating systems. It is for social housing projects across Scotland that effectively contribute towards the achievement of our ambitions for Scotland to achieve net zero emissions by 2045. The funding invitation is for the retrofit or refurbishment of existing housing stock and is not for new build social housing.

There is also an additional £10 million of funding available for “fabric first” energy efficiency only projects.

This is part of a fund totalling £200 million available over the next five years through our Social Housing Net Zero Heat Fund.

Themes

For this funding round there are two themes:

  • theme 1 – zero emissions heating system for social housing across Scotland
  • theme 2 – “fabric first” energy efficiency only projects

Read the full details about the themes before you apply.

Who can apply

Applications will be accepted from registered social landlords, local authorities and ESCOs. They must be for social housing projects delivering zero emission heating systems

Projects will only be considered if they fulfil the mandatory criteria

How to apply

When to apply

Applications can be submitted to the fund at any time. This fund is a rolling fund and will remain open to applications until the funding limit is reached.

Funding is capped at £20 million each year for zero emissions heating projects, with an additional £10 million for energy efficiency projects this year. Funding will be not be allocated equally across the checkpoints and applications will be considered in the order they are received. As such, we recommend submitting your application as early as possible.

Application pack

You can download the application form and all guidance notes in supporting documents.

Assessment dates for applications

Checkpoint

Month

Last date for application submission

Checkpoint 1

September 2021

31 August 2021

Checkpoint 2

December 2021

30 November 2021

Checkpoint 3

March 2022

28 February 2022

Checkpoint 4

June 2022

30 May 2022

Applicants will be informed of the outcome of their application within four weeks of their checkpoint.

Project deadlines

Theme one

Theme one projects must have completed installation and commissioning by 30 November 2022.

We will consider projects with a later deadline. Email netzerosocialhousing@gov.scot for further information.

Projects seeking funding for financial year 21/22 will be prioritised.

Theme two

Projects submitted under theme two must complete installation by 31 March 2022.

Intervention rates

The maximum grant funding intervention rate will be between 45% and 50% of eligible costs depending on the size of the organisation and the location of the project. Projects will be required to provide 50% match funding, of which 30% loan funding can be applied for. A minimum of 20% of project costs must be funded from the project’s own capital or agreed private financing.

Eligible capital costs are:

  • financial costs incurred for the purchase of physical assets
  • costs of project build, installation and construction
  • costs of project commissioning
  • non-reclaimable VAT for eligible capital costs

Contact

Email netzerosocialhousing@gov.scot

First published: 11 Aug 2021 Last updated: 17 Nov 2021 -