This week, Scotland has introduced a new £20 million grant scheme aimed at decarbonising the public sector’s heating systems. The funding, administered through the Scottish government and Salix Finance, is set to accelerate the adoption of sustainable heating technologies across public buildings throughout the country.

Who is the funding for?

The funding has been allocated to support the decarbonisation of heating systems in the Scottish public sector, including local authorities, universities, and arm’s length external organisations. Scotland’s Public Sector Heat Decarbonisation Fund will eventually replace the Scottish Energy Efficiency Loan Scheme, which has been in place since 2006. The Loan Scheme provided loans with no interest for initiatives to increase energy efficiency.

With a budget of £20 million, the new fund aims to facilitate the transition from fossil fuel-based heating to low-carbon alternatives. The initiative aligns with the Scottish government’s commitment to achieving net-zero emissions by 2045, and a similar heat decarbonisation fund exists for England. Read more about it here.

What heat decarbonisation measures are funded?

The funding is specifically aimed at supporting a variety of heat decarbonisation measures within the public sector. These measures include:

  • Heat pumps
  • Using district heating networks
  • Insulating buildings via retrofit
  • Developing new low-caron technology

Zero Carbon Buildings Minister Patrick Harvie said: “Public sector bodies have already achieved a lot, but we need to go further. The design of the new scheme reflects the changing needs of the sector, allowing public sector organisations to invest in projects with higher capital costs and which cannot always be invested in on a spend to save basis.

“Moving from a loan scheme to direct grant awards for the first time represents a very significant commitment from the Scottish Government to support the delivery of these challenging targets.”

How can I apply for the funding?

Applications for the scheme are set to open via the Salix Finance website later this summer. We will keep updating this page as more information is released.