£12m boost to accelerate public sector building decarbonisation across Scotland

Ten projects receive funding for building decarbonisation improvements under Phase 2 of Scotland’s Public Sector Heat Decarbonisation Fund with Scottish Government supporting universities, councils and cultural institutions to retrofit buildings, cut emissions and lower long-term energy costs.

Millions of pounds worth of building decarbonisation projects across Scotland are set to move forward thanks to investment from the Scottish Government through Scotland’s Public Sector Heat Decarbonisation Fund.

Funding of £12 million has been awarded to universities, local authorities, and arms-length external organisations to deliver retrofit projects that will decarbonise heating systems and improve the overall energy performance of their buildings.

Delivered by our team at Salix on behalf of the Scottish Government, the fund supports a whole-building approach that will enable recipients to modernise their estates, reduce fuel bills, and help Scotland transition towards a more sustainable, low-carbon future.

The fund sees grants ranging from £41,000 up to £2.5 million awarded for upgrades such as better insulation, new windows, solar panels, and clean heating systems to replace old gas and oil boilers. 

These changes will make buildings warmer, reduce energy bills, and help Scotland reach its target of net zero emissions by 2045. 

One of the projects to receive funding is Glasgow Life. It has received £2.4 million under Scotland’s Public Sector Heat Decarbonisation Fund to retrofit and decarbonise heating at the site, focusing on the 1970s extension of the building. 

The works include the removal of an old gas boiler and replacing it with air source and water source heat pumps. The transition will also be supported by upgraded electrical infrastructure and building management systems upgrades and other measures including a roof mounted PV system.

Announcing the successful awards, Climate Action and Energy Secretary Gillian Martin said:  "Reducing emissions and making our buildings greener is one of the most important steps we can take to tackle climate change, and is a key action in our recently published draft Climate Change Plan.   

“I have seen first-hand the hard work and commitment of the public sector to transform Scotland’s buildings by taking action to decarbonise and improve the energy efficiency of public buildings, like the Mitchell Library.   

“The public sector are leading by example, and these projects show the scale of ambition on our journey to net zero.   

“By investing in clean heating and energy-saving measures now, we are not only reducing emissions but also lowering energy costs for years to come." 

Our Salix chief executive Kevin Holland added: “These projects show what’s possible when innovation is matched with determination. 

“Organisations across Scotland are transforming the buildings people rely on every day, making them cleaner, more efficient and more resilient for the long term.

“We’re proud to work alongside the Scottish Government and our partners to turn climate ambition into real-world progress.

“Upgrading landmark sites like the Mitchell Library demonstrates how heritage and low-carbon technology can work hand-in-hand to benefit communities and the planet.”

Glasgow Life’s Facilities Manager Andy Taylor added: “We’re committed to achieving low carbon infrastructure that protects our cultural heritage and enables Glasgow Life to deliver valued public services more sustainably. 

“We are grateful to the Scottish Government and Salix for this investment, which represents a significant step for our charity and for Glasgow in the city’s journey towards net zero. 

“Working closely with our brilliant partners at CBRE Global Workplace Solutions, this project proves that large historic and complex buildings can be decarbonised at scale while remaining in public use, as we strive to create a greener, more energy-efficient Glasgow for generations to come.”

Successful projects to receive funding include:

University of St Andrews - £950,000 

This project includes works to three historic buildings within the Madras College site, namely the Main Building, Music Building and Geography Building which are all located within St Andrews’ conservation area. The scope of the works includes fabric upgrades to the roof and the installation of new energy efficient windows across the three buildings. 

This project is the first phase of a broader programme to enhance the energy efficiency of the site and convert it from a high school into a higher education facility. 

Perth and Kinross Council - £41,052 

The project will take place at Arngask Primary School and Nursery. It involves building management system and insulation upgrades, installation of double glazing to replace existing single glazed units, and replacement of existing centralised hot water cylinders, served from oil boilers, with electric thermal energy storage units and point of use electrical water heaters. 

Clackmannanshire Council - £2,200,000 

This project will prepare Alva and Banchory Primary Schools for future heat network connection through energy efficiency upgrades and installation of renewable energy generation technologies. Monitoring equipment will be installed to assess the impact of fabric improvements, supporting development of a route map for further retrofit across the council’s estate. 

South Ayrshire Council - £1,718,998 

Troon Pool is the focus of this project and will benefit from the installation of roof/wall insulated cladding, double glazing, a new heat recovery unit to improve building ventilation and maximise heat recovery efficiencies and the installation of Solar PV. 

Midlothian Council - £2,500,000 

Midlothian House is to become a hub location where residents can access several services provide by the Council. The project proposes to replace existing gas boilers with a new air source heat pump and improve the energy efficiency of the building through fabric upgrades, new efficient glazing and a heat recovery ventilation system.  

Stirling Council - £415,506 

Cornton Primary School will be upgraded under this project and will benefit from the installation of a new air source heat pump to replace existing gas fired heating plant. Energy efficiency measures including a building management system and loft insulation will also be installed, alongside enhanced heating and domestic hot water controls which will allow for improved operational efficiency of the new heat pump. 

Shetland Islands Council - £167,873 

This project will install loft insulation at Lerwick Town Hall to reduce the building’s energy demand. Existing oil boilers will be removed and the building will be connected to the local district heat network, with heat interface units installed to accommodate space heating and domestic hot water needs.   

Fife Council - £1,591,468 

Aberhill, St Agatha’s and Carnegie Primary Schools are in scope of this project. At each site, existing gas boilers and a combined heat and power unit will be replaced with air source heat pumps. Various energy efficiency measures will also be installed including insulation improvements, building management systems and Solar PV. 

Glasgow Life - £2,392,551 

This project proposes to replace an existing gas boiler at the Mitchell Library with a system of high-efficiency air and water source heat pumps. The building will also benefit from electrical infrastructure, insulation, building management system and cooling-plant upgrades, as well as Solar PV. 

Orkney Islands Council - £120,000 

After major works to improve the air tightness of the building, Orkney Islands Council propose to install three air source heat pumps in the Library and Archive building to replace current oil-fired boiler plant. The existing boiler plant burns Kerosene and is supplying underfloor heating on the ground floor of the building and radiators in ground floor ancillary spaces and first floor spaces. Undertaking these works will mean carbon emissions from this building are linked only to electricity emissions.

Scotland’s Public Sector Heat Decarbonisation Fund invited applications from 29 April to 27 May earlier this year. The applications were assessed throughout the summer.

See Scottish Government website.