The Scottish Government offers pre-capital and capital grant funding to support heat network projects.

For projects at the pre-capital stage, grant funding towards feasibility studies, Outline Business Cases and technical, financial and legal advisors is available through the Heat Network Support Unit.

For capital-ready projects, the £300 million Scotland’s Heat Network Fund offers capital grant funding (up to 50% of the total eligible capital costs). It supports the roll out of new zero emission heat networks and communal heating systems, as well as the expansion and decarbonisation of existing heat networks across Scotland.

The Fund supports both networks suited to urban environments as well as small, rural and community-led heat networks and communal systems. Both public and private sector organisations can apply. Proposals can be submitted at any time.

Funding is also available through the District Heating Loan Fund, managed by the Energy Saving Trust. The fund provides capital loan funding of £1 million plus to organisations in Scotland to use renewables technologies to build out heat networks. The fund is available to medium to low-risk Scottish companies (or Scottish subsidiary companies). Loans can fund up to 100% of eligible costs or be match-funded with capital grants. Technical advice and support are also provided in addition to funding.

For advice on help and support for your scheme please contact us.