To ask the Scottish Government what funding it has made available or plans to make available for key enabling infrastructure to support heat network delivery, and how it is working with industry to develop a strategic approach to the rollout of heat networks.
The Scottish Government is providing long term funding to support local authorities to develop and deliver their Local Heat and Energy Efficiency Strategies (LHEES) with funding committed for each local authority of £75,000 per year until 2027-28.
The Heat Network Support Unit (HNSU) provides funding and advisory support to help heat network projects progress through early development and unlock new investment. This includes strategic support, to build on the LHEES and develop a strategic approach to large-scale deployment. The HNSU offers up to 90% of eligible costs, capped at £150,000, with local authorities contributing the remaining 10%.
Scotland’s Heat Network Fund(SHNF) makes capital funding available for up to 50% of the costs of construction of new, low carbon heat networks. This includes the establishment of energy centres and key pipework, which may have additional capacity for further phases of expansion and new building connections.
For more details on the HNSU and SHNF and wider policies, including non-domestic rates relief for district heating and funding for individual buildings (including enabling works) to connect to a district heat network, please see the Heat Networks Delivery Plan Review Report 2026.