Social Housing Net Zero Heat Fund: how to apply

Overview

The Social Housing Net Zero Heat Fund provides support to registered social landlords across Scotland to install clean 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.

As set out in the Heat in Buildings strategy, we must rapidly scale up deployment of zero emissions heating systems in order to meet our climate change targets, particularly in social housing stock which makes up around 24% of all homes in Scotland. The Climate Change (Emissions Reduction Targets) (Scotland) Act 2024 sets legally binding targets to achieve net zero greenhouse gas emissions by 2045.  

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.

Funding invitation

The Social Housing Net Zero Heat Fund supports social housing landlords across Scotland to install clean heating systems and energy efficiency measures for social housing projects that effectively contribute towards our ambition to achieve net zero emissions by 2045 and support the eradication of fuel poverty. 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 – clean 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 or a consortium of organisations with the lead applicant as the named grantee. Dependent on demand, successful applications from organisations which have not previously received grant support from the Fund will be prioritised.

Where possible, organisations should try to submit one project per organisation only. This can include different measures at different locations and will be subject to the limitations on grant allocation as set out in the “What You Can Apply for” section of the guidance.

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 the accompanying guidance fully
• ensure a senior member of the lead organisation, such as Chief Executive or Director, also supports the application by signing the application and providing his/her name and position in the application form 
• use the application form checklist to ensure you have provided the required documentation
• send your completed application and supporting documentation to: netzerosocialhousing@gov.scot

When you can apply

What you can apply for

For projects under Theme 1 of the Fund - (Clean 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.

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.

Grant caps are as follows:

• the maximum value of grant available to an organisation is £5 million per project. It is advised that one project per organisation is submitted to the Fund
• the maximum value of grant available per property is £35,000
• rural and remote rural areas will be given an 11% uplift on the per property grant cap.
• properties in remote rural areas will be subject to a 22% uplift
• for rural or remote rural areas, however, the total grant awarded cannot exceed either 50% of 60% of the costs of the total works
• a calculator will be provided with your application pack to help calculate the maximum grant per property for your project

Full detail on cost eligibility categories can be found in the guidance note which is issued on request by emailing netzerosocialhousing@gov.scot.