Scottish Government opens clean heat fund for public sector
New grant scheme will fund early-stage work to develop heat network and off-gas-grid decarbonisation projects, with applications closing next month
The Scottish Government has launched a new funding scheme offering up to £30,000 a project to help public sector organisations to develop plans to decarbonise heating across their estates.
The Scotland’s Public Sector Clean Heat Development Fund will provide grants for early-stage project development, including feasibility studies, options appraisals, business cases and technical assessments.
The fund is designed to build a pipeline of investment-ready projects focused on heat decarbonisation and energy efficiency across Scotland’s public sector.
Funding of up to £30,000 per application, is available during the current financial year only, and projects supported through the scheme must be completed by 31 March 2027.
Applications close in September 2026 and organisations wishing to apply must submit their applications by 23:59 on Wednesday 9 September 2026.
Two areas of funding
The scheme is open to projects under two themes.
The first covers feasibility and potential costs associated with connecting public sector buildings to existing or future heat networks within designated heat network zones.
The second focuses on feasibility and potential costs of decarbonising heat sources in public sector buildings located off the gas grid.
The Scottish Government said the grant will support public sector organisations in developing both heat network and off-gas-grid clean heat projects.
Eligible applicants include local authorities, universities and central government bodies, among other public sector organisations in Scotland.
However, the funding cannot be used to cover existing staff costs, capital works, building energy audits, carbon management strategies or estate management strategies.
Applications close in September 2026 and organisations wishing to apply must submit their applications by 23:59 on Wednesday 9 September 2026.
Eligible public sector organisations can request an application pack by emailing [email protected]. The pack includes the application form, guidance note and FAQ document.
The Scottish Government has advised applicants to consult the FAQ document before contacting the fund team with queries.
The scheme is intended to help public bodies move projects beyond the initial planning stage and towards a position where they are ready to attract investment and deliver clean heat infrastructure.
