Phase 3 Scotland’s Public Sector Heat Decarbonisation Fund

This is our page where you will find out all you need to know about the fund which we are delivering on behalf of Scottish Government. The information on this page includes comprehensive guidance notes, the application form, eligibility as well as webinar information.

The Scottish Government introduced Scotland’s Public Sector Heat Decarbonisation to support the public sector in transitioning their current heating systems to low carbon alternatives, and to reduce energy use by utilising a wide range of energy efficiency measures. 

The first two phases Scotland’s Public Sector Heat Decarbonisation Fund have provided grant funding for local authorities, universities and arms-length external organisations to progress projects that take a whole building approach to decarbonise heating systems and improve the overall energy performance of their buildings. 

We also welcome applications from central government organisations.

This website area offers key information to help you consider the fund. Our Scotland team can also answer queries via email at [email protected]

To apply for Phase 3 of Scotland’s Public Sector Heat Decarbonisation Fund, please register your interest through our website – available shortly. Following this, instructions on how to apply will be sent to the registered email address. 

From the 24 March 2026, eligible organisations are invited to apply for funding to support the delivery of their heat decarbonisation and / or energy efficiency project(s).

Phase 3 of Scotland’s Public Sector Heat Decarbonisation Fund has two strategic objectives:

• To support projects that will replace existing polluting heating systems with clean heating systems.
• To support energy efficiency projects where they can demonstrate that they are part of a whole building retrofit approach or broader strategy for heat decarbonisation (including connections to heat networks). 

Phase 3 of Scotland’s Public Sector Heat Decarbonisation Fund builds on the previous phases to support eligible public sector organisations to introduce zero emissions heating systems. The fund also continues to encourage a ‘whole building’ approach that implements energy efficiency measures to reduce a building’s overall energy demand and optimise the performance of their zero direct emissions heating system.

Many buildings rely on fossil fuel systems to fulfil heating, hot water and catering requirements. The energy demand from these requirements is often high and requires a strategic and targeted approach to reduce the associated carbon emissions. Decarbonising heating in these buildings has been established as one of the biggest challenges in meeting the UK’s 2050 net zero targets. 

Scotland is paving the way to source alternative systems to replace fossil-fuel based heating and has set an even more ambitious target to meet net zero emissions for all greenhouse gasses by 2045.

We are holding four webinars to help guide you through the fund – come along, find out more, ask your questions and meet the team.

Our webinars are held on:
March 10
March 17
March 24

24 March: Application window opens

29 April: Application window closes

May-July: Assessments

August: Grant offers are expected to be made in August 2026 with an expected grant start date expected in late August and a grant end date of 31 March 2027.

We welcome your queries regarding Phase 3 of Scotland’s Public Sector Heat Decarbonisation Fund, please email us at [email protected]