Social Housing Net Zero Heat Fund

Overview

We are making £200 million available up to 2026 to support social landlords across Scotland to install zero direct 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 do help end Scotland’s contribution to climate change.

We must rapidly scale up deployment of zero emissions heating systems, such as heat pumps and heat networks, as set we stated in the 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.

2023 funding invitation

The funding invitation for 2023 will support social housing landlords across Scotland to install zero direct emission heating systems and energy efficiency measures is the fund 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.

Themes

For this funding round there are two themes:

• theme 1 – zero direct 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. They must be for social housing projects delivering zero direct emission heating systems.

Projects will only be considered if they fulfil the mandatory criteria. 

How to apply

• request an application pack from netzerosocialhousing@gov.scot
• only fill in the application form after you have read guidance information fully
• send your completed application to: netzerosocialhousing@gov.scot

When to apply

Applications can be submitted to the fund at any time. 

Assessment dates for applications

Applications will be reviewed on a quarterly basis. The next review points are listed below.

Intervention rates

For projects under Theme 1 of the Fund - Zero Direct Emissions Heating Systems for Social Housing retrofit across Scotland the financial support available will be a contribution of up to a maximum of 60% of total CAPEX costs for the zero direct emissions heating elements only. Fabric and Energy Efficiency measures will be supported at up to 50% of the eligible CAPEX costs.

For projects under Theme 2 of the Fund – “Fabric First” Energy Efficiency only Projects the financial available represents a funding contribution of up to a maximum of 50% of eligible CAPEX costs.

The maximum value of grant available to either theme is £5 million per project.

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