Social Housing Net Zero Heat Fund - development funding invitation

Information and guidance notes for the Social Housing Net Zero - Development Funding Invitation.

More information

The application process

Online workshops

We strongly recommend that projects participate in one of the workshops although it is not mandatory.

The workshops have been developed to provide projects with background information to the call, the application process, guidance around project eligibility and application criteria, as well as offering an opportunity to engage directly with the team.

Workshop attendee lists

We are unable to distribute delegate information for any of our workshops. Any slides or presentations used will be made accessible to attendees

Application form support

In addition to the online workshops, a number of updated guidance documents are available on our Social Housing Net Zero Heat Fund (SHNZHF ) website, including the call information and the application form.

Projects who have questions regarding the application process can email for support.


This funding is for social housing projects only. Only applications from registered social landlords, local authorities and ESCOs will be considered.

Number of applications

Multiple applications are not allowed. There is a limit to the number of applications a single social landlord, local authority or ESCO can submit. If an applicant has multiple, or multi-year projects, these should be submitted as one application.

Assessing applications

Applications will be assessed by the Scottish Government and technical experts. The process for assessing project applications is a robust one. External expertise will be called up as required.

Supporting documentation

You must supply all the mandatory information and supporting documentation. Projects must comply with the criteria set out in the invite and application. This includes the submission of all mandatory project documentation. Missing documentation will impact on the evaluation of the project. Missing documentation will not be requested after an application has been submitted.

Withdrawing applications

Applications for funding can be withdrawn after being submitted. You are able to withdraw your application from the process prior to an award being made, however we would caution that the assessment is resource intensive and expensive. It is a condition of funding awards that if a project withdraws from the process following grant award without completing the project, we will recoup any funds paid.

Appeal process

Decisions on funding can be appealed. Projects seeking funding through the call will be subjected to a robust evaluation process before recommendations and decisions are made. Projects that are concerned with decisions made should raise these in writing within seven days from outcome notification. In this instance, an independent assessor will review the decisions made providing clear evidence as to whether the decision/recommendation made by the panel was correct when assessed against the eligibility criteria. Projects will be unable to provide any further information or answer any questions as the appeal relates to information submitted within the original application deadlines.

Applications containing large files and attachments

Support is available to assist submitting applications which contain large files and attachments. The SHNZHF Support Team have considered the best options for the submission of project documentation and will be on hand to manage any submission issues. All project documentation should be submitted by email to You may need to send more than one email in which case these should be clearly marked ‘email one’, ‘email two’ and so on.

Funding and support

Amount of funding

There is a limit to the amount of funding offered to each project. Total development funding available to projects from SHNZHF is up to £100,000 for a single project.

Our intervention rate for this funding call is between 50% > 100%. Applicants should set out in the application form what intervention rate they are applying for and why this level is required.

Financial support for development projects

The financial support for development projects will be in the form of grant funding.

Eligible capital costs are:

  • business plan preparation 
  • project manager costs 
  • technical surveys of existing stock 
  • tenant engagement

Match funding

Match funding may need to be paid back to the funder. Match funding may need to be repaid, depending on the contractual issues between the project and match funder. Grant funding will not be released in advance of need. Projects can only seek payment of grant following the successful completion of agreed milestones or agree deliverables. This also limits the potential for SHNZHF having to reclaim grant.

Demonstrating match funding

Evidence is required in order to demonstrate that a project has the required match funding in place. All projects must be in a position to provide SHNZHF with copies of documentary, legally binding contracts or loan agreements, as evidence of having secured the required match funding. We will only finalise funding awards to projects i.e., countersigned grant offer letters, upon receipt of this documentary evidence. SHNZHF reserves the right to contact the match funding providers named in the application to request confirmation of their commitment to investment in your project.

Projects that cannot make up the match funding with other public funds

Please get in touch with us at if you are unsure as to whether the funding you are using will be eligible for use as part of match funding.

Projects already in receipt of receiving financial support

Projects already in receipt of receiving financial support from the Scottish Government for the project may be eligible for additional support from this fund.

Applications will be considered on a case-by-case basis. Full details of the support already being received should be included in the application form. The SHNZHF team will then consider the nature and scope of the financial support already awarded and whether there are any additional elements of the project eligible for SHNZHF support.

Projects awarded funding

Projects that are awarded funding must agree to provide monitoring and reporting information. All projects receiving funding through SHNZHF must adhere to an agreed monitoring and governance process. Projects must complete and submit project progress reports at regular monitoring intervals, e.g. monthly reports as agreed by the SHNZHF project support team. Projects will be expected to complete and submit a reporting template in advance of all project progress and monitoring meetings.

These reports will provide the evidence that the project milestones have been reached and that projects can submit an invoice, together with supporting documentary evidence, for the release of grant funding.

Project monitoring and stage gateway undertaken by SHNZHF Partners, or an external provider contracted by SHNZHF to assess progress against project milestones.

The final project report shall detail the forecast capital or developmental costs and actual capital or developmental costs for the entire project. This report will include details of the progress made towards the criteria identified by SHNZHF partners through this fund as well as a likely future timeline for achieving exploitation of project results. The report will also include details on the electrical generation performance achieved by the facilities where this was a project aim.

Following the end of support provision, SHNZHF Partners will require annual reports for a period of up to five years after completion of the project. These reports will cover the progress of the project and technology towards commercialisation and economic impact in Scotland.

Closing date for applications

The fund will remain open to applications until 30 May 2022. Funding is set at least £500,000. Applications will be considered in the order they are received as such we recommend submitting your application as early as possible


Organisations should follow their own procurement rules as part of the procurement process.

Successful projects must

  • follow procurement rules as they apply to your organisation
  • evidence that they have followed their organisation’s procurement rules
  • put in place fair, open and transparent procurement arrangements to support the delivery of the project. Wherever possible this should include an element of competition to ensure best value. Where a single source is selected without competition, the project should be in a position to justify this procurement route to the SHNZHF

Professional contractors and advisors

Projects can use their own match funding to appoint a professional contractor.

Starting the project before a grant has been awarded

Prospective applicants start the process of procurement before a grant has been awarded at their own risk.

The procurement process can begin before a SHNZHF funding decision has been made. This is entirely at the project’s own risk and any costs incurred before a SHNZHF grant is awarded would be ineligible and would not form part of the overall project costs. They would not contribute toward the minimum of 50% of project match funding.


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