Social Housing Net Zero Heat Fund
What does this involve?
This Scottish Government fund will help social landlords across Scotland install zero emissions heating systems and energy efficiency measures across their existing housing stock. This funding can be used for the retrofit or refurbishment of existing housing and is not for new build social housing.
Eligible projects must fall under one of the key themes of the funding invitation:
Theme 1 – Zero emissions heating systems for social housing across Scotland
Zero emission heat projects submitted under Theme 1 will need to complete installation and commissioning by 30 March 2024. However, the Scottish Government is willing to discuss projects with a later commissioning deadline.
Theme 2 – “Fabric First” energy efficiency-only projects
Theme 2 projects will not be able to match fund with loan funding and must be completed by 30 March 2024.
Reducing emissions from homes and buildings is one of the most important ways to help end Scotland’s contribution to climate change. Achieving emissions reductions in buildings will require over one million homes to convert to using zero or low emissions heating systems by 2030.
The Scottish Government is making £200 million available over the next 5 years to support social landlords in reducing their properties’ emissions.
Am I eligible?
Applications will be accepted from registered social landlords, local authorities and energy service companies (ESCOs). They must be for social housing projects delivering zero emission heating systems and include the following:
- project location
- proof of technology concept
- end user for output identified and secured at time of submitting an application
Projects must show that they:
- fall under at least one of the funding invitation priority themes
- have the potential to deliver a significant reduction of greenhouse gas emissions (MtCO₂e) and energy consumption
- can secure other sources of funding or finance to make up a minimum of 50% contribution towards the cost of the project
- will have a positive and significant social impact on Scotland
- can deliver zero emissions heating systems and energy efficiency measures that will provide savings for social housing tenants
- can clearly explain why they require funding and what value will be added through grant support
What does this cost?
This fund will be provided on a co-funded basis. This means the grant support will cover up to a maximum of 50% of your total capital expenditure costs, up to £10 million. You must be able to demonstrate through legally executed agreements that you have secured a minimum of 50% match capital for your project before any offer of funding can be made.
Who is this for?
Registered social landlords, energy service companies (ESCOs) and local authorities.
How long does this take?
Applications can be submitted to the fund at any time. This is a rolling fund and will remain open for applications until all funds have been distributed.
Applications will be reviewed on a quarterly basis. The review points are:
- Checkpoint 1 – October 2023 (for applications submitted by 11 October 2023)
- Checkpoint 2 – February 2024 (for applications submitted by 14 February 2024)
Applicants will be informed of the outcome of their application within 4 weeks of their checkpoint.
Funding will be not be allocated equally across the checkpoints and applications will be considered in the order they are received. As such, it is recommended that you submit your application as early as possible.
Next steps
Visit the Scottish Government website for more information on how to apply and to read the full guidance.
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